Wind Power Production Incentive (WPPI)

The Canadian government launched the Wind Power Production Incentive (WPPI) in 2002, expecting to boost the countrys installed wind capacity by 500% over five years. The fifteen-year, CAN$ 260 million (US$ 170 million) programme was designed to support the installation of 1 000 MW of new wind power. The WPPI was expected to leverage about CAN$ 1.5 billion (US$ 1 billion) of capital investments across the country. The WPPI covered about half the cost premium for wind power in Canada, which reflected a decision by the federal government to spur complementary actions in the provinces. Projects commissioned between 1 April 2002 and 31 March 2003 received CAN$ 0.012 per kWh (US$ 0.008 per kWh) for the first ten years of their operation. The incentive payment drops to CAN$ 0.010 per kWh (US$ 0.0065 per kWh) for projects commissioned between 1 April 2003 and 31 March 2006, and then to CAN$ 0.008 per kWh (US$ 0.005 per kWh) for wind farms that begin operation during the last year of the programme, which ends 31 March 2007. The programme set aside a minimum capacity of 10 MW for each province and 1 MW for each of Canadas three northern territories. To avoid the possibility that rapid take-up in a few provinces would reduce opportunities in others, a maximum of 300 MW of qualifying capacity per province was set. The WPPI rules set out a number of other criteria for qualifying projects and producers. The minimum capacity for eligible wind projects was 500 kW, except in northern and remote locations, where projects as small as 20 kW were eligible. The maximum amount payable to any one producer over the course of the programme was CAN$ 64 million (US$ 42 million). In 2006, the Canadian government ended funding for the WPPI. The program was superseded in part by ecoEnergy for Renewable Power.