Details on Transfer Payment Programs (Exceeding $5 million during the reporting year)

Name of transfer payment program: Wind Power Production Incentive Program (Voted)

Start date: April 1, 2002

End date: The program’s authority to enter into contribution agreements ended on March 31, 2007. However, allocated funding will be issued to program participants until 2016-17.

Description: The Wind Power Production Incentive (WPPI) Program was set up to help establish wind energy in Canada by providing a financial incentive of about 1 cent per kilowatt-hour of wind energy produced from the installation of up to 1,000 megawatts (MW) of new wind power capacity in Canada by 2007. Eligible recipients claim payment of the incentive over a 10-year period. The program contributes to the production of new electricity from wind energy projects. The program has 22 approved wind projects for a total capacity of 924 MW.

NOTE: The total contribution funding for the program is $324 million, of which $314 million has been committed to wind projects. Actual spending will be spread out over several years until 2016-17. The initial WPPI grant and contribution budget was $254 million and an additional $70 million was allocated in 2005-06 to allow the program to continue to support the development of new wind farms.

This transfer payment program has repayable contributions.

Strategic outcome: 2) Natural Resource Sectors and Consumers are Environmentally Responsible

Results achieved: The program managed contribution agreements with 22 wind farms that were commissioned under the program, representing 924 megawatts of wind energy capacity in Canada and about $314 million in contribution funding over 15 years.

Comments on variances: Wind farms supported under the program produced more energy than expected but were within the payment limits to producers under the provisions of contribution agreements.

Audits completed or planned: One recipient was audited during this fiscal year.

Evaluations planned: An evaluation of Renewable Energy Deployment programs, including this program, is planned for 2014-15.

Engagement of applicants and recipients: The WPPI program no longer accepts applications, as the commitment period ended on March 31, 2007. No activities to engage new applicants are planned. The department continues to be engaged with recipients to ensure compliance with the requirements of the contribution agreements.