Power in production.

• Author: Kelly, Lindsay
• Position: MANITOULIN/NORTH SHORE

Wind generation hasn't been an easy proposition or the Mother Earth Renewable Energy (MERE) project.

In its first year of operation, the $12.5-million, 4-megawatt wind turbine project run by the M'Chigeeng First Nation encountered more than a few snags that held up production. From a delay in receiving its certificate to operate to power surges to communication issues to a three-week, late-autumn shutdown mandated by Hydro One, the community got a crash course in the nuances of energy generation.

Yet despite the delays, project manager Grant Taibossigai is still upbeat about the initiative.

"We did quite well for the first year--fairly well, given the circumstances," he said. "But I believe if we took the numbers from September to September of this year, we would clearly meet the projected revenues and expenses that we had identified in our business operational plan."

According to its business model, the project should generate about $300,000 of surplus funds annually in the first 14 years of operation (the First Nation has secured a 20-year power generation contract with the Ontario Power Authority), and $1.2 million annually for the succeeding six years after financing loans are repaid.

Because of the delays, this year's surplus totalled $120,000, Taibossigai said. It's not quite what the community predicted, but it's still money it didn't have before. Chief and council will decide how the surplus will be used, likely by bringing a vote to the membership. Suggested options include a hydro subsidy, economic development initiatives, or other energy development projects.

Eager to build on its renewable energy portfolio, the community applied to the provincial government's Feed-In Tariff (FIT) program for a second phase for MERE, a 500-kilowatt ground-mount solar project. But M'Chigeeng's application wasn't approved.

Taibossigai is critical of the province's vetting process. When FIT 2.1 was announced earlier this year, developers anticipated the province would make 800 to 1,000 MW available for applicants, yet only 200 MW was ultimately announced.

He was disappointed to learn that that allocation was divided into 100 MW for mainstream developers partnering with First Nations and 100 MW for First Nations. That 100 MW was divided yet again, into 50 MW for Metis and 50 MW for First Nations developers It's a process Taibossigai deems unfair.

That...