Wind Power Production Incentive 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 as per signed contribution agreements with program participants until 2016-17.

Fiscal year for terms and conditions

2005-06

Strategic Outcome

2 – Natural Resource Sectors and Consumers are Environmentally Responsible

Link to department's Program Alignment Architecture

2.1 – Energy-efficient Practices and Lower-carbon Energy Sources and 2.1.1 – Renewable Energy Deployment

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 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 and has approved 22 wind projects for a total capacity of 924 MW.

Results achieved

The Program provided financial incentives towards the 10 remaining projects with contribution agreements. These projects resulted in 1.57 TWh of electricity production from large-scale wind energy projects. The expected 2.55 TWh of electricity projection in 2015-16 represented the production from all 22 projects which had contribution agreements. Many of those contribution agreements are now complete and the Program no longer tracks production.  However, those projects are still in operation and producing clean renewable electricity.

Comments on variances

Due to the variability of wind energy resources, the planned spending each year is based on estimated production for that period.  During 2015-16, the projects experienced lower than expected renewable resources which caused lower than expected electricity production. 

Audits completed or planned

No audits were completed or planned for this fiscal year since the Program has almost completed its funding obligations. 

Evaluations completed or planned

An evaluation of the Program was completed in July 2015.    

Engagement of applicants and recipients

Applications are no longer accepted for the WPPI, as the commitment period ended on March 31, 2007. The Department continues to engage with recipients to ensure compliance with the requirements of the contribution agreements.