Wind Power Production Incentive
Encyclopedia
The Wind Power Production Incentive, or WPPI, was a program of the Canadian Government that promoted the generation of electricity
from wind power
in Canada
to reduce the amount of greenhouse gas
that would otherwise enter the atmosphere
from burning fossil fuel
s. The government paid about half the excess cost of producing electricity from wind, compared to conventional sources, for the first 10 years of a project. The Canadian WPPI Program started in 2002 and ended on 31 March, 2007 after a change of government
. A different program partly replaced it.
A wind farm
costs about the same to build per watt of nameplate capacity as a coal-fired power station of similar rating, but the economies of scale
are fewer for a wind farm due to the lower quantity of power produced over the life of a station. Depending on location, wind farms may produce nearly full power output only about 28% of the time, whereas a base-loaded coal-fired station runs at full output more than 85% of the time. The WPPI provided a direct subsidy per kilowatthour of wind energy produced, from 1.2 cents down to 0.8 cents depending on the startup date of a project. Measures were taken to distribute the incentive across the country. The total estimated cost of the program was (CDN) $260 million.
An internal audit in 2006 observed that capacity factors were over-estimated by applicants, so less capacity was actually supplied than intended.
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
from wind power
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....
in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
to reduce the amount of greenhouse gas
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...
that would otherwise enter the atmosphere
Earth's atmosphere
The atmosphere of Earth is a layer of gases surrounding the planet Earth that is retained by Earth's gravity. The atmosphere protects life on Earth by absorbing ultraviolet solar radiation, warming the surface through heat retention , and reducing temperature extremes between day and night...
from burning fossil fuel
Fossil fuel
Fossil fuels are fuels formed by natural processes such as anaerobic decomposition of buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years, and sometimes exceeds 650 million years...
s. The government paid about half the excess cost of producing electricity from wind, compared to conventional sources, for the first 10 years of a project. The Canadian WPPI Program started in 2002 and ended on 31 March, 2007 after a change of government
Canadian federal election, 2006
The 2006 Canadian federal election was held on January 23, 2006, to elect members of the Canadian House of Commons of the 39th Parliament of Canada. The Conservative Party of Canada won the greatest number of seats: 40.3% of seats, or 124 out of 308, up from 99 seats in 2004, and 36.3% of votes:...
. A different program partly replaced it.
A wind farm
Wind farm
A wind farm is a group of wind turbines in the same location used to produce electric power. A large wind farm may consist of several hundred individual wind turbines, and cover an extended area of hundreds of square miles, but the land between the turbines may be used for agricultural or other...
costs about the same to build per watt of nameplate capacity as a coal-fired power station of similar rating, but the economies of scale
Economies of scale
Economies of scale, in microeconomics, refers to the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit...
are fewer for a wind farm due to the lower quantity of power produced over the life of a station. Depending on location, wind farms may produce nearly full power output only about 28% of the time, whereas a base-loaded coal-fired station runs at full output more than 85% of the time. The WPPI provided a direct subsidy per kilowatthour of wind energy produced, from 1.2 cents down to 0.8 cents depending on the startup date of a project. Measures were taken to distribute the incentive across the country. The total estimated cost of the program was (CDN) $260 million.
An internal audit in 2006 observed that capacity factors were over-estimated by applicants, so less capacity was actually supplied than intended.
External links
- Natural Resources Canada. Wind Power Production Incentive. Retrieved April 3, 2006.