Two-turbine deal reveals life in Ontario green power retail market

Ontario's Sky Generation Inc is expanding its Ferndale wind project to supply electricity to Bullfrog Power, a new Toronto-based green power retailer. Sky Generation will add two turbines, due online in 2006, to the Vestas V80 1.8 MW unit already on the site, although company founder Glen Estill says a decision about which turbine model will be installed has not been made. The power purchase agreement is a significant one for both companies. Sky Generation installed its Ferndale turbine in late 2002, just two weeks before the government of the day slapped a C$0.043/kWh price cap on electricity rates in the province and effectively killed the emerging competitive retail market the project was intended to supply. Following the lifting of the price cap in April this year, Bullfrog became the first 100% green electricity retailer to set up shop in Ontario, in September. It is also taking a minority stake in Sky Generation, which will help to finance the new turbines. The deal is also unique in Ontario, where recent renewable energy development has been driven by government sponsored requests for proposals, not customer choice.