After City Council’s approval to find a builder for the proposed wind turbine at the Saskatoon Landfill, the Administration is no longer in a position to recommend the project.
At the close of Requests for Proposal on Thursday, December 15, 2011, Saskatoon Light & Power received only one bid to construct a wind turbine at the landfill. The lone submission was well beyond the limits of what would be a viable alternative electricity generation project for the City.
“This is disappointing for sure,” says Kevin Hudson, Manager of Metering & Sustainable Electricity for Saskatoon Light & Power. “It’s difficult to explain the reasons for the lack of proposals submitted, but perhaps, and despite our conservative estimates, the safety expectations the City has in place are so stringent the marketplace cannot meet them at this time in a cost effective manner.”
The bid received by the City was $6.35 million – nearly $2 million over the budget estimate of $4.4 million. The turbine would generate a profit, but because of the higher construction cost, the rate of return on the investment is not enough.
“This proposal is a high-end solution that comes with a high-end price tag,” says Utility Services General Manager, Jeff Jorgenson. “Although the cash flow for the proposed wind turbine would still be positive for the City, the project is no longer considered to be a good financial investment.”
Considerable consultation and research was utilized in planning this component of the Green Energy Park. It will remain useful information as City engineers gained valuable knowledge in alternative energy generation as they continue to look for safe ways to profit and save the environment at the same time.
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