British Columbia okays 19 projects in clean power push

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Innergex Renewable Energy Ltd had three run-of-river projects chosen. Innergex, whose stock rose 1.9 percent to C$12.39, holds a two-thirds stake of the projects and Ledcor Power Group Ltd the remainder. Fraser Mackenzie analyst John Safrance raised his rating on Innergex stock to "strong buy" from "buy" and hiked his target price to C$10.55 from C$8.40, citing the company's growth prospects.

Capital Power Corp's Quality Wind project in northeastern British Columbia, which the company estimates will cost C$455 million to construct, was also chosen by BC Hydro. Commercial operation is expected by spring 2013, the company said. Brookfield Renewable Power said it has been selected for a 40-year power purchase deal for its Kokish River hydroelectric project, being developed by Kwagis Power. The project has a planned start date of 2014.

Power purchase agreements, which will include the range of prices BC Hydro will pay for the power, will be submitted to the British Columbia Utilities Commission for review. British Columbia has mandated that 90 percent of electricity generated in the province must come from clean or renewable sources by 2016. It also plans to achieve electricity self-sufficiency by 2016.

Green power developers have despaired at delays in the call for clean power, made in 2007. BC Hydro had been expected to announce winners last summer. "We believe that BC Hydro's management of the call has been an embarrassment for the province," said analyst Harris in a note. "But the silver lining may be that it should set in motion a series of initiatives and reforms that are positive for (independent power producers) in B.C."

NaiKun Wind Energy Group Inc said its offshore wind project was not among the first wave of winners, but its proposal remains under consideration. Its shares fell 13 percent to 52 Canadian cents on TSX Venture on Friday. NaiKun said its Hecate Strait project has won provincial environmental approval and that it is now working with the federal government and native Indian group Haida Nation to advance their reviews. The company said it is also trying to diversify and reduce risk by acquiring electricity generating assets that are in advanced development. It said it is negotiating with multiple parties.