SkyPower Reaches Agreement with Local Communities



    SkyPower Wind Energy Fund LP Reaches Agreement with Local Communities and
    provides status update on Terrawinds Project

    TORONTO, March 1 /CNW/ - SkyPower Wind Energy Fund LP (the "Partnership")
announces that Terrawinds Resources Corp. ("Terrawinds") has reached an
agreement with the Municipalité régionale de comté de Rivière-du-Loup ("MRC")
and the applicable local municipalities on the layout and rights-of-way for
the Terrawinds project (the "Facility").

    
    Update on Discussions with the MRC and Local Permitting

    -   The agreement reached with the MRC deals with the final locations for
        an initial 107 wind turbines and the associated rights-of-way.
        Negotiations are continuing towards increasing the number of wind
        turbines to between 114 and 134 over the coming weeks. The agreement
        was reached with the MRC and the local municipalities through a
        working committee which was formed in November 2006.

    -   As an initial step towards finalizing the local permitting, the MRC
        has amended the Règlement de contrôle intérimaire ("RCI") adopted by
        the MRC in February 2006 to provide for new setback and other zoning
        requirements. The amendment to the RCI was unanimously approved by
        the members of the MRC and will be submitted to the Quebec Minister
        of Municipal Affairs for final approval. The revised layout and
        rights-of-way for the Facility conform to the amended RCI.

    -   The agreement with the MRC and the amended RCI are important steps in
        moving the Terrawinds project forward. Terrawinds will continue to
        work in the coming weeks with the individual municipalities to
        implement the agreement with the MRC and finalize the necessary
        resolutions, authorizations and certificates of conformity required
        for the finalized locations of the Infill Phase turbines.

    CPTAQ and Environmental Approval Process

    -   Terrawinds has previously received environmental and Commission de
        protection du territoire agricole du Quebec ("CPTAQ") approval for
        the initial 6 CRCE Phase turbines. In order to commence the full CRCE
        Phase construction, Terrawinds requires the CPTAQ decision on its
        application for the balance of the CRCE Phase turbines, which was
        filed in September 2006, and approval of its environmental
        application for the CRCE Phase turbines by the Quebec Minister of
        Environment.

    -   The next step in the CPTAQ application for the balance of the CRCE
        Phase turbines is a public hearing which has now been scheduled for
        March 2007. Following this public hearing, the CPTAQ is expected to
        render its decision on our application.

    -   The environmental Certificate of Authorization for the balance of the
        CRCE Phase can only be issued by the Quebec Minister of Environment
        following receipt of the CPTAQ approval.

    Federal Government Incentive Program

    -   In late January 2007, the Federal government announced the intention
        to establish the ecoEnergy Renewable Power Initiative to replace the
        previous Wind Power Production Incentive ("WPPI") program which had
        been established by the prior Federal government but had not been
        extended. The new program proposes to provide $0.01 per/kWh for up to
        4,000MW for renewable energy projects in Canada, including wind. The
        specific details of the proposed program are still being finalized by
        the government. Once the specifics of the program are finalized, the
        Partnership will be in a position to assess the financial incentive
        that may be available for the Facility under this new program.

    CRCE Phase Deductions and Amendments to 2005 Tax Filings

    -   The Partnership continues to work with Canada Revenue Agency ("CRA")
        and relevant Quebec tax authorities to finalize the process for
        amending 2005 income tax filings as a result of the reduction in
        eligible CEE in 2005 due to the delays experienced by Terrawinds in
        obtaining the necessary permits, authorizations, approvals and
        rights-of-way for the CRCE Phase during 2006. The discussions with
        the tax authorities are at advanced stages and we anticipate
        providing final details on the process for the 2005 re-assessment to
        unit holders in a separate press release shortly.
    

    With the agreement on the number of wind turbines, turbine placement and
rights-of-way and the announcement of a proposed new Federal wind incentive
program, the Partnership is continuing its ongoing analysis of the revised
plan for the Facility which includes completing a revised wind resource
report, reviewing all current and proposed contractual arrangements, assessing
revised costs, revenue and overall economics of the Facility, seeking
accommodations, amendments and revisions to arrangements where appropriate and
possible. The Partnership continues to believe that proceeding to complete the
Facility is the most appropriate way to seek to maximize ultimate unit holder
value.
    Failure to obtain all the necessary rights-of-way, permits and regulatory
approvals, to secure any necessary contractual arrangements or accommodations,
amendments or revisions to arrangements, to secure the additional financing
required to complete the Facility or failure of the CRCE Test Phase or other
events could result in a halt to construction of the Facility or could
otherwise have a material adverse effect on the Partnership.

    About SkyPower Wind Energy Fund LP

    The Partnership has invested in the common shares, including flow-through
shares, of Terrawinds Resources Corp. ("Terrawinds"), a Canadian corporation
that will construct and operate approximately 114 wind turbines, including up
to 22 test wind turbines (the "CRCE Phase") for purposes of conducting a
120-day test (the "Test") and, if successful, construct and operate the
balance of the 114 wind turbines (the "Infill Phase") to create a 171MW wind
energy project near Rivière-du-Loup, Québec (the "Facility"). The Facility
will generate electricity for sale to Hydro-Québec pursuant to a 21-year power
purchase agreement (the "Power Purchase Agreement").

    Certain statements included in this news release constitute
"Forward-Looking Statements" within the meaning of the Securities Act
(Ontario). Such forward-looking statements involve unknown risks,
uncertainties and other factors including risks of the financial viability of
the Facility, risks in obtaining permits, authorizations, rights-of-way and
approvals required for construction, construction risks, possible failure of
the test phase, risks relating to the Power Purchase Agreement, requirement
for additional financing, failure to obtain statutory or other relief from
certain taxes payable by Terrawinds, availability of government incentive
programs for wind facilities, variable wind resource and associated wind
energy production, turbine design and local climatic conditions, risks
relating to interconnection, reliance on key suppliers and one customer and
regulatory risks. These risks and uncertainties as well as additional
information are outlined in the Partnership's Third Quarter Report and other
continuous disclosure documents. These risks may cause the actual results,
performance or achievements of the Partnership to be materially different from
any future results, performance or achievements expressed or implied by such
forward-looking statements.





For further information:

For further information: David Bacon, Vice President, Finance, (416)
979-4625, of SkyPower I GP Inc., General Partner to the SkyPower Wind Energy
Fund LP, www.skypowerwindenergyfund.com

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