GDF Suez and International Power PLC sign wind power agreement in Ontario

International Power Canada Inc., a subsidiary of International Power PLC of London, England, and 70 per cent owned by GDF Suez of France, has signed an agreement with the Ontario Power Authority to supply wind-generated electricity from wind farm projects in Southwestern Ontario.

Under the terms of the purchase agreements with the OPA, International Power will be able to sell electricity through the Feed-in-Tariff (FIT) program, under which the province guarantees fixed rates for 20 years to companies generating electricity from renewable sources such as wind, solar, hydro and biomass.

International Power estimates the two projects, at Erieau and East Lake St. Clair, will cost $300 million each and be capable of producing 99 Megawatts of power each. They are scheduled to open in 2013.

The company already operates five wind farms in Canada with a total capacity of 287 MW. Its first wind farm, which started in 2006, is Erie Shores, about 200 kilometres southwest of Toronto. Erie Shores consists of 66 turbines along a 40-kilometre-stretch of the north shore of Lake Erie, between Copenhagen and Clear Creek.

In North America, International Power operates 25 power plants using wind, biomass and hydro, with a total capacity of 589 MW.

"Canada is a key market for renewable energy, with high quality projects that are supported by long term Feed-In Tariffs (FIT)," International Power Chief Executive Philip Cox said.

Ontario's FIT scheme pays generous, above-market rates to producers of renewable energy from sources such as the sun and wind under 20-year, fixed-price contracts.