Wind Power Generation

NP's Wind turbine at Rankin Inlet

Background: In the nineties NPs predecessor the Northwest Territories Power Corporation (NTPC) had been under pressure from customers, its shareholder, environmental regulators and the Public Utilities Board (PUB) to generate power utilizing wind. Wind energy is being used increasingly in other parts of the world and it was felt that it would be a less expensive form of power than diesel. In response to these requests the Board of Directors of NTPC approved a developmental wind program in 1996. At that time it was recognized that wind generation would not be cost effective compared to diesel. Wind power has a low operational cost but the high capital cost relative to the output makes wind power more expensive than diesel. However, the program was approved to gain practical experience with wind energy in the North so that when it became cost effective the Corporation would be ready to adopt it on a large-scale basis for the benefit of its customers. NP is now involved in three wind farms. As a small utility, the wind turbines NP requires are very small by industry standards. There are only two suppliers of turbines less that 100 kW that NP can make use of and NP has utilized both suppliers with limited success. They have not been able to supply equipment when promised resulting in significant project delays. In order for wind energy to be successful in the long-term NP will need to identify a reliable supplier of equipment.

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The units do not operate reliably in cold weather so they require regular maintenance and parts to ensure continued operation of the turbines. The suppliers are mainly interested in supplying turbines and not in their operation and maintenance. Support from southern Canada is too expensive and slow. In order for wind energy to be successful, operation must become more reliable and this will require training of NP or local contractors to maintain the turbines. While small by industry standards, the turbines nevertheless represent a large percentage of the generation for small communities. For example, the two 80 kW units in Kugluktuk could provide up to 60% of the communities generation at some time of the day. As wind fluctuates, having this much power rising and falling can impact the quality of power, the reliability of the community's power and the cost of the remaining diesel power. As the load on the diesel engines fluctuates they do not run as efficiently as they could resulting in higher diesel costs. In order for wind energy to be successful in the long-term, it will require better control systems to ensure that they integrate efficiently with the diesel power plant. One of the communities required that we move the units after installation had begum even though the community had approved the original site. In order for wind energy to be successful in the long-term it must be ensured that the community fully understands and supports the project before it is undertaken. The cost of relocating turbines makes expensive projects even more so. Finally, the economics of wind energy need to dramatically improve for it to become a viable source of power in the long-term for all Nunavut customers. A desire by customers for higher priced green power will be required for wind energy to be economic in all markets in Nunavut. The Corporation has gained valuable experience so far from its developmental wind program that will assist when wind energy becomes a viable source of power in the long-term. For now NP will monitor the three wind farms in place and continue to develop solutions for the problems identified so that when wind energy is economic it will be a reliable source of power. Once these units have operated for another 12-24 months and there is better information on the on-going costs and reliability the need for additional projects will be reviewed.

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Current Projects: Cambridge Bay Turbine Type: Lagerwey LW18/80 Rated Output: 80 kW In-service Date: September 1994 The Cambridge Bay wind project is owned and operated by Dutch Industries Ltd. The energy produced by the turbine is purchased by the Corporation in accordance with the terms and conditions set out in a power purchase agreement, which expires September 30, 2002. The rate for purchasing energy from the unit is set at $0.20/kWh. The production, purchase payments, and fuel displaced are shown in the following table. This information represents the most recent available information. Year 1994 1995 1996 1998 1999 Production (kWh) 57,080 155,364 150,538 122,610 72,067 Payments Fuel Displaced Fuel Displaced ($) (Litres) note 1 ($) note 2 11,416 15,385 8,097 31,073 41,877 22,040 30,108 40,576 21,355 24,522 33,048 19,435 14,413 19,425 12,191

Production from the Cambridge Bay machine suffered during temperatures lower than -35C. Production was also sensitive to maintenance, and suffered whenever the Dutch Industries maintainer was out of town or too busy with his other duties to carry out the necessary routine maintenance. The current price of production fuel in Cambridge Bay is $0.7644/litre. Using the 1997/98fuel rate of 3.71 kWh/litre, this translates to a fuel cost of $0.206/kWh, making the current rate for power purchase attractive for the current and future years. Note 1 Based on the 1997/98 Plant Efficiency of 3.71 kWh/l Note 2 Based on 1994-96 Fuel Price 1997-98 Fuel Price 1999 Fuel Price 2000 Fuel Price $0.5263/litre $0.5881/litre $0.6276/litre $0.7644/litre

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Kugluktuk Turbine Type: 2 x Lagerwey LW18/80 Rated Output: 2 x 80 kW Installation Date: October 1996 In-service Date: April 1997 Total Generation to August 1999: 254,080 kWh Fuel Displaced (Litres): 68,670 litres Fuel Displaced ($): 41,298 The turbines in Kugluktuk are owned and operated by NP. Purchased in July 1996, these turbines were the first in NTPCs wind energy program. Erection of these units was an expensive learning process for NTPC, as the units were relocated shortly after the foundation construction began. The original location was one of the three locations recommended by the supplier, and was the only one of the three locations approved by the Hamlet officials. Further research by the Corporation into siting of locations led to agreement with opponents of the location that the location was too close to occupied buildings to guarantee an acceptable margin of safety. After erection in the new location, there were several problems encountered with the electronic control systems of the machines, and resolution of these problems took time due to lack of after sales service from the manufacturer and supplier. Ongoing routine maintenance was also a problem in the first two years of operation, with several extended periods of downtime. On July 19, 2000, one of the machines fell from its tower after failure of several mounting bolts, and is considered beyond repair. The second unit suffered a lightning strike earlier in July/2000, causing damage to some of the control circuitry. This unit has been repaired and is back in service. The capital cost for purchase and installation of these two machines in Kugluktuk was $580,000. With only $41,298 fuel savings over 28 months, this location will require extremefuel cost escalation before wind energy is a viable alternative. Update (Feb/2002): No further action on failed turbine. Quote of $110,500 was received from Dutch Industries for a re-conditioned turbine to replace the damaged unit. Cambridge Bay unit maintainer has indicated a desire to purchase units and relocate to Cambridge Bay.

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Rankin Inlet Wind Turbine 1

Rankin Inlet Turbine Type: Atlantic Orient AOC15/50 Rated Output: 66 kW Installation Date: September 2000 In-service Date: November 2000 Generation to Date: Not Available Estimated Annual Generation: 152,000 kWh Annual Fuel Displacement: 41,100 litres Annual Fuel Savings: $24,000 (2000price) The Rankin Inlet wind turbine was originally destined for Iqaluit, and the turbine and tower were shipped there for installation in 1997. Supplier problems delayed delivery of the blades until early 1998. At that time the decision was made to relocate the project to Rankin from Iqaluit, mainly due to better economics. The foundation and distribution extension for the Rankin turbine were completed in September 1998. Approvals for the site had been received from Transport Canada, and two community consultation/information meetings were held. The construction was held up when the control building failed to make shipment into Rankin on the sealift. The shipper agreed to have the structure brought in to Rankin during the winter. Before the project could proceed further, Arctic Airports, Government of Nunavut, advised that the location of the unit would interfere with aircraft approaches, adding some 90 feet to the Minimum Descent Altitude allowed for the instrument approach in Rankin. It was decided that the turbine would be relocated to another location farther from the airport rather than risk having a negative impact on the community.

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The new site was chosen, geophysical analysis carried out for design of the foundation, and pilings installed in early 2000. The turbine was erected in September 2000, and was ready for testing. Update(Feb/2002): Turbine in service at end of November, 2000. Several tip brake problems resulted in extensive down time in the first year of operation. Nov 23/00 to Mar 14/01 turbine operated 895 hours out of 2664 for 33.6% availability Mar 14/01 to June 20/01 the unit operated 229 hours out of 2352 for 9.7% availability. (May 10/01 was the last recorded tip brake problem, resulting in the unit being unavailable until June 20/01). June 20/01 to Dec 01/01 the unit operated 2126 hours out of 3936 for 54% availability. For period Nov. 23, 2000 to December 1, 2001: Total Hours 8952 hours Running Hours 3250 hours Production 80,000 kWh Overall Availability 36.3% It should be noted that not all unavailable hours were due to maintenance problems. The equipment presently installed does not differentiate between down time due to unavailability and down time due to lack of sufficient wind. Benefits and Problems Discussion: Economics Escalating fuel prices in the Corporation's service area are making wind energy appear more attractive than ever before. The Cambridge Bay unit demonstrates this. Up until the most recent fuel price increase, the output of this unit was being purchased at a loss. The power purchase price now appears to be better than our avoided cost of diesel. This situation now exists in several locations with high wind potential. Planning and Installation Even with attractive economics, wind turbine installations require extensive planning. In two of the three NTPC owned projects, the turbines had to be relocated before erection was completed. It is obvious from these experiences that the installation of a wind turbine in a community cannot proceed along the same schedule as a diesel capacity increase, or even a plant upgrade. It should also be obvious that economic factors

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alone do not make the project acceptable. A wind turbine project requires a minimum of one year pre-planning prior to even purchasing the unit. The community must be fully involved, and be made fully aware of proposed location, effect on the electrical supply, possible economic and environmental benefits, etc. If the community does not fully buy in to the project, the difficulties involved in bringing the project to a successful completion are increased considerably. Maintenance Wind turbines are machines that require constant monitoring and maintenance if full potential production is to be achieved. In order to achieve the operational availability required to operate these machines economically, the maintenance must be carried out as required, and by the Corporation's own resources. A preventive maintenance program, as outlined by the manufacturer, must be strictly adhered to, and possibly adjusted to meet the demands of the harsh operating climate the Corporation experiences. The economics of these machines on the Corporation's systems cannot support contract maintenance, especially if the expertise must be flown in from the south. The economics also cannot support the machine being down for extensive periods of time because trained maintenance personnel are not available to put the units back into service. Because of these factors, some of the best wind resources are marginal overall.

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