Prince Edward Island has set an ambitious new target for renewable energy use, saying it is committed to producing 30 per cent of its total energy needs from renewable sources by 2016.

Premier Pat Binns said Thursday that renewable energy is a key to strengthening the Island economy.

The new goal is far more ambitious than the one reached by generating electricity with wind mills.
(CBC)

"Each year, some $440 million leaves Prince Edward Island, as fossil fuels are imported to heat, and power our homes and fuel our vehicles," said Binns in a news release.

"This target is about keeping more of those dollars in P.E.I. to strengthen our economy. And it is about creating new opportunities for Island farmers, and a healthier environment today and for future generations."

This is not the first target for renewable energy use set by the P.E.I. government. The province has a previous commitment to source 15 per cent of electricity from renewable sources by 2010. Wind farms currently planned or under construction are set to exceed that target three years ahead of schedule.

Biofuels must play a part

This new commitment is much more ambitious. Electricity accounts for just 13 per cent of energy consumption on the Island. To reach the 30 per cent goal, the government will have to take a big chunk out of the 40 per cent of energy used for transportation, or the 47 per cent used to heat water and buildings.

'The agricultural industry will be diversified as farmers grow new crops for the energy sector.'- Premier Pat Binns

The provincial news release went on to say renewal fuels such as ethanol and biodiesel will be central to the province's plans to reduce reliance on fossil fuels. Increasing the use of renewable fuels, said Binns, will also provide new opportunities for Island farmers.

"The agricultural industry will be diversified as farmers grow new crops for the energy sector," he said.

The renewable fuels are slated for both transportation and heating purposes.

Energy Minister Jamie Ballem told CBC News that few energy experts believed P.E.I. could hit its targets on electricity, and he is ready to prove them wrong again.