Author: Jarra Hicks
The Pukwis project is an inspiring example of how diverse communities can collaborate and achieve a range of social, environmental and economic benefits. Thanks to changes to Ontario state law in 2009, such projects are now economically viable, and Pukwis Community Wind Park has since begun construction.
Project overview
The Pukwis Community Wind Park, owned by the Pukwis Energy Co-operative, is a partnership between the Windfall Ecology Centre and the Chippewas of Georgina Island First Nation. They started working together in 2003 to create a fully community-owned wind farm, establishing the Pukwis Energy Co-operative to own and direct the project, with local shareholders.
The Pukwis Community Wind Park is one hour north of Toronto on Georgina Island, on land collectively owned by the Chippewas of Georgina Island First Nation. Construction begins there in 2010, and the project should be up and running in late 2011. In April 2010, the co-op secured a power purchase agreement with the Ontario Power Authority, under Ontario’s new Green Energy Act 2009. This guarantees them a set price for their electricity for 20 years.
Project cost and funding
Phase one cost $45 million, comprising ten 2 MW turbines on Georgina Island. This was funded through the sale of co-op shares and debt. The debt is from traditional commercial loans, backed by the power purchase agreement with the Ontario Power Authority.
A $332,000 grant from the Community Power Fund went towards the co-operative start-up costs and feasibility studies.
Background
The Chippewas of Georgina Island First Nation worked with the Windfall Ecology Centre in 2002 to increase community energy-efficiency with a housing retrofit project. The project was so successful, it's now being copied by the Ontario Power Authority in First Nation communities across the state. It also encouraged the Chippewas of Georgina Island First Nation and the Windfall Ecology Centre to establish their own renewable energy power generation facilities. Phase one of the project is part of a bigger plan to expand the Pukwis Community Wind Park into a 54 MW operation across several local sites, costing approximately $110 million.
The Pukwis project - named after the Chippewas’ word for whirlwind - developed through both parties' desire to provide locally-generated renewable energy, improve the quality of the environment and keep the economic benefits within the local community. The wind park will be100% community-owned, with revenues from the sale of wind power going back to the local shareholders. In Ontario, where 50% of electricity currently comes from nuclear power, many people are aware of the need to develop renewable, sustainable and safer sources of energy. As Chief Donna Big Canoe explains, the Pukwis project is important in “ensuring we limit our impact on the environment and natural resources”.
Co-op shareholders are First Nation people and others from the Greater Toronto Area. Minimum share packages cost $1,125. To maintain democratic control, the co-op has a 'one member, one vote' policy, regardless of the number of shares they own. The electricity produced will go to the Ontario grid network and the co-op will receive the agreed price per kWh for the next 20 years. Because Pukwis is a for-profit co-operative, members will receive their share of revenue based on the number of shares they own.
For the Chippewas, it is important to have co-ownership and control over the project, rather than selling the wind development rights, which has happened in other parts of Canada. As co-owners, the Chippewas have direct influence on the size and location of the wind farm, ensuring minimum impact on the land and its other uses. As well as providing clean, renewable electricity, the project also means an independent source of income and employment.
Challenges
Until 2009, when Ontario introduced the Green Energy Act, policy affecting community-owned renewable energy projects was tumultuous and uncertain. The new policy, however, encourages renewable energy developments like Pukwis, by providing grid access and fair, stable feed-in tariffs through 20-year power purchase agreements. Pukwis was among the first to benefit from this new policy, helping it reach the construction stage.
Results
The electricity generated from phase one of the Pukwis project will power the equivalent of 7,500 Ontario homes and displace 15,000 tonnes of CO2 each year.
Pukwis is among the first community-owned wind projects in Ontario to secure a feed-in tariff contract under the new Ontario Green Energy Act. As Brent from the Windfall Ecology Centre explains, "the new power purchase agreement in April 2010 came after years of hard work, but it is just the beginning of community-owned power generation in Ontario. Pukwis is a 'first of its kind' project - an example of diverse communities working together to develop and own local renewable energy projects”. Currently, the only other 100% community-owned wind farm in Canada is the WindShare Co-operative’s 750 kW turbine in Toronto city.
The involvement and co-ownership by First Nation people is a first in Canada. Pukwis shows how people can work together for common benefits. Hopefully, Pukwis’ collaborative, co-operative model can inspire other communities in Canada and across the world.