SOUTH PEACE EAST AND WEST SOP PROJECTSPATRICK HENN, DEVELOPMENT MANAGERPRRD Board of Directors Meeting, April 28 2016

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In Canada for more than 12 years Family-owned company dedicated to developing, building and operating renewable energy

projects Developed and built several large-scale wind farms and solar projects in Ontario, Québec,

Alberta Successful in securing PPAs in competitive wind tenders in Ontario ( 3 projects) and in

Québec (12 projects), totalling over 2000MW Portfolio of over 500WM in British Columbia

Renewable Energy Systems (RES)

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Why Wind? • A clean, renewable energy source that does not emit any pollutant or GHG• Affordable, cost- competitive as technology improves and turbine suppliers provide more

competitive prices• Provides local benefits in the form of local tax revenues, landowner revenues and sharing of

benefits with local community

Why Wind in BC and in the Peace?• A great complement to hydro• Very good wind resource in various parts of the province• Peace Region has a large load, resource intensive area• Several areas compatible for wind development• Peace Region has a sustainable energy plan promoting wind energy

BC Hydro has put in place the Standing Offer Program (SOP) to offer opportunity to IPPs for small-scale (15 MW) projects

Why These Sites?

• Very good winds, elevated plateau • Compatible large agricultural holdings with enough space for a small-scale wind project• Landowners supportive of projects on their lands, opportunity to generate revenues from an

alternate source while maintaining farming activities• Very low population density in proximity to the proposed turbine sites• Interconnection option on BC Hydro line near Alaska Highway

Why Wind?

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• Opportunity under BC Hydro’s Standing Offer Program

– Projects are capped at 15 MW => 5 x 3MW turbines, or 6 x 2.5MW turbines maximum

• The proposed Project is a small-scale wind farm with likely 5 or 6 wind turbines

– Spaced approximately 400-500m apart to optimise energy

– Includes access roads, an electrical collector system (underground or overhead cables) and a substation connecting to the BC Hydro transmission system (138 kV in the Tower Lake area)

– 35-40 M$ estimated capital costs– Contract with BC Hydro for 25 to 40 years– Turbines located on lands of the South

Peace Hutterites, underground power lines and substation located on separate private lands

The Proposed Projects

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Tower : 90-100 m

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2015 Renewable Energy Systems Canada Inc. 5

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- Land agreements, engagement with PRRD since 2012- Wind measurement campaign since 2013 (sodar), and 60m wind monitoring tower

installed April 2016 to solidify wind measurements and have data for the financing stage

- Site visits to understand site, land use, location of residences, other infrastructure- Bird and bat studies- Turbine layouts and noise studies- Interconnection studies (underway with BC Hydro)

- Both projects received its “non-farm use” approval from the PRRD and the ALC (October 2015)

- Currently in the zoning amendment process with the PRRD- Includes a detailed “Environmental Report” which provides environmental baseline studies, effects

assessments and mitigation measures to limit impact to the environment (water crossings, breeding bird habitat avoidance, agriculture, etc.)

SCHEDULE FOR THIS PROJECT GOING FORWARD:

Obtain zoning amendment approval and other permits (Summer 2016)Apply to the BC Hydro (Fall 2016)Obtain contract from BC Hydro (end 2016/early 2017, but pending BC Hydro decision)Start of construction (Summer 2017)Commercial Operation Date (2018)

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Work to Date and Schedule

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Stakeholder engagement

- 2 public open house meetings, July and October 2015- Overall comments were positive and supportive of projects- Engagement is ongoing and RES remains available to discuss project at any

time

Local Benefits

15 MW ($35-40M) project will yield several types of benefits- Annual Peace River Regional District tax returns, estimated at $54,000/year

per project, or $3,600/MW installed- Annual private landowner payments- Construction contracts (possibly 50% of total construction cost)- Permanent jobs for life of Project (25 to 40 years)

Community Engagement and Local Benefits

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• Temporary construction area of 1 hectare (2.5 acres) or less

• In operations, each wind turbine occupies only a fraction of a hectare (approx. 0.1)

• Small access road for maintenance• Electrical collector system along

access roads or lot lines• Farming resumes around wind

turbines and any other activities (oil an gas, hunting, etc.)

• All temporary areas restored to initial pre-construction state

Project Footprint

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Noise- Specialised software was used to predict noise levels from

turbines - uses conservative parameters and typically on-site measurements during

operations shows even lower noise levels

- Project complies with BC noise guidelines for wind energy, which requires noise to be under 38.4 dBA outside all residences- BC more stringent than most Canadian jurisdictions and the World Health

Organisation (WHO)

- On these 2 specific sites, most residences are more than 4km away => noise levels well under the prescribed limits

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Issues Overview – Noise

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The balance of scientific evidence and human experience to date concludes that wind turbines are not harmful to human health. There are numerous credible studies on this subject• Health Canada:

there is no evidence of a causal relationship between exposure to wind turbine noise (including infrasound and low-frequency noise) and self-reported medical illnesses and health conditions

• Chief Medical Officer of Health (Ontario): “according to the scientific evidence, there is no direct causal link between wind turbine noise and adverse health effects”

• Health impacts have been systematically dismissed at all Environmental Review Tribunals in Ontario

• Journal of Environmental Medicine (McCunney et al. 2014): – “The epidemiological and experimental literature provides no convincing or consistent evidence that

wind turbine noise is associated with any well-defined disease outcome. What is suggested by this literature, however, is that varying proportions of people residing near wind turbine facilities report annoyance with the turbines or turbine noise. (…) This self-reported annoyance, however, has not been reported consistently and, when observed, (…) cannot discern whether the wind turbine noise emissions play any direct causal role. »

Issues Overview – Health

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Large game

Study on impact to Moose populations in Northwest Ontario (Natural Resource Solutions Inc., 2010)

Prince Wind Farm, 126 turbines

“Evidence of moose was regularly observed under turbines and along access roads during 3 years of post-construction monitoring”“Based on observations at the Prince Wind Farm between 2006 and 2012, the presence of operational wind turbines does not appear to cause an avoidance response from moose”.

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Issues Overview - Wildlife

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