The utility that serves Prince Edward Island plans to spend $60 million to develop a wind farm on the Island.

• INDEPTH: Power

The proposal is a change for Maritime Electric, which had said that wind power was too expensive.

Wind farm in Fort Macleod, Alberta. (CP Photo)

"The technology has improved dramatically in the past few years," president Jim Lea now says. "The cost has declined and the reliability has increased. That has a big factor on the economics."

There are already eight wind generators at the PEI Energy Corp. site. They're expected to supply two per cent of the province's needs. PEI Energy Corp. is a Crown corporation and the province is pushing wind power because it's a clean, renewable source.

Provincial Environment Minister Jamie Ballem said if Maritime Electric opens its own operation, P.E.I. will exceed its goal of getting 15 per cent of its energy from renewable sources by 2010.

"I guess I'm surprised, and somewhat pleasantly surprised, that Maritime Electric is seeing that wind energy is an alternative, and a very viable alternative for the province," he said.

Wind is the fastest-growing source of electricity in the world, and in Canada, provinces and companies are rushing to adopt it, the Canadian Wind Energy Association website says.

Canada has about 590 megawatts of installed wind power, with nearly half in Alberta and a third in Quebec, the association says.

• FROM DEC. 12, 2005: Energy answers not blowing in wind for Yukon

The Yukon recently rejected wind power, saying it was too expensive and not reliable.