“Project development is a tricky business,” said Xeneca Power Development Vice President of Corporate Affairs, Mark Holmes. That doesn’t mean, however, that those tricky projects don’t get done. The Canada power generation company is currently focused on 19 renewable energy projects throughout the region, one of which is in its first stages of construction while the others are expected to begin building in 2012-13 with commissioning in the spring of 2015.

Xeneca Power Development was founded when Canadian Renewable Energy Corporation became a lucrative takeover target by a bigger company and was bought out in 2005. CREC’s original principals – Patrick Gillette and Uwe Roeper, both experienced renewable energy developers - reformed their company following the sale. Today the company’s ten permanent staff works with hundreds of contractors to develop water powered energy facilities throughout Ontario.

DEVELOPMENTS

Xeneca currently has 19 contracts with the Province of Ontario through the Ontario Power Authority’s Feed in Tariff (FIT) program, and another 14 in a queue awaiting Economic Connection Test. Xeneca currently represents about half of all the water power being developed under the current power procurement Policy in Ontario, where the removal of all coal fired electrical generation from the province by 2014 has been mandated.

Currently underway is the McGraw Falls project west of Thunder Bay, which, according to Holmes, is a “template” project that will provide the company a model of where efficiencies can be defined and developed during the initial process. “We’ve a development template approach where the first [project] will be carefully monitored and where there are efficiencies we’ll capitalize on them, and where there are inefficiencies we’ll correct them,” he continued. “By building the template we’ll apply that to other projects and that will help to achieve a planned approach that is bred from the successes we’ve achieved at McGraw. The template will evolve with each of projects, with the intent of improving with each development”

Efficiencies may also be realized by developing several projects on a river system. For example, this will allow the company to avoid duplication by conducting government prescribed Environmental Assessment work concurrently.

“Instead of filing four separate Class Environmental Assessments, Xeneca will be able to incorporate all four projects into one documents, Mr. Holmes explained.

SITE DEVELOPMENT

Xeneca separates itself not only as among the first to be awarded FIT contracts by the Ontario Power Authority, but also as a developer with diversity. As one of the largest renewable energy developers in Ontario, Xeneca doesn’t distinguish larger projects from smaller ones, even if the latter attributes a lower environmental footprint and economics. “We have quite a few projects,” said President Patrick Gillette, “but because we’re generally small (under 10 MegaWatts and widely dispersed, our impact is quite low – and most people won’t know we’re there.” Holmes continued, saying “We have sought out the projects that are small; it’s kind of a niche market and not a lot of people have gone after it.”

TECHNOLOGY

Even with all the developments that have occurred in the past 100 years the underlying technology used by Xeneca and other waterpower developers remains principally the same. It’s a proven technology that is highly efficient. “We’re a 100 year old technology,” said President Gillette. “The basis for water power is already established. What makes a difference today is the incidental.”

Technological development isn’t completely out of the ordinary. Penstock, a metal pipe used to bring water from the control structure down to the powerhouse, or rubber inflatable dams used in a concrete base, are all recent developments. Gillette, who has decades of experience, knows that there are two reasons that really keep renewable energy projects running. “One is the design of the actual, physical power plant and [the other] is different ways of constructing,” he said. “There are a lot of new technologies, but the basis of ours is the same, which is that we’re putting a water control structure into the river and then drawing that water down, and passing that water through to a generating station.” And once these facilities are built, they have up to 100 years of use and then can be rebuilt.

EMPLOYEES

With just ten employees, there is a lot to be done. Both Holmes and Gillette are confident that an evolution of growth will happen naturally as work related demands grow. Right now, with just one project “shovel ready,” the base of Xeneca’s staff is knee-deep in environmental approvals. Eventually, when the time has come to hire engineering, project management and construction teams, the team will grow naturally.

The management team, which has a combined 60 years of experience in the energy development sector, is still learning by doing, says Gillette. “Training is trial by fire,” observes Holmes. Most of the time, individuals hired have a core set of skills, we give them the support we can,” added President Gillette.

THE FUTURE

The current economic climate hasn’t directly affected Xeneca’s work, though the company has been negatively impacted by inflation in costs associated with construction materials including concrete, steel and labor. “We don’t know why,” says Gillette. “It seems it’s going up, not down, with the inflationary pressures.” Nonetheless, Xeneca will continue to work toward the completion of their remaining projects.

”Once the current suite of projects is completed, we’re not sure what will happen after the five year window for development closes,” says Holmes. “The Ministry of Natural Resources is reworking its site release policy to merge with the Green Energy Act and with the provisions of the power authority’s Feed-in Tariff program.” The potential could lead to a new round of site release in areas deemed viable, which would then be available to developers. Only time will tell whether the extension will occur and all of the company’s decisions have been left up to the discretion of its experienced Board of Directors.