Province to support green energy initiatives
$200M earmarked for locally generated wind, biomass, hydro or solar projects
Communities that want to develop their own renewable energy projects will get a financial leg up, under a new program announced by the province Thursday.
The Community Generation Program will see $200 million from the carbon tax over the next 20 years to support the installation of locally generated electricity projects.
The idea is that community groups, municipalities, agricultural societies, co-ops, universities, schools, Indigenous communities and other groups can partner on small-scale projects such as wind, biomass, hydro or solar energy.
With recent advances in renewable technology, Environment Minister Shannon Phillips is expecting enthusiastic take-up of the funds.
“We have a really great resource, so the return to communities for solar projects — in particular between five and 25 megawatts, depending on where they’re sited — can be very, very good,” she said on her way into the house Thursday, adding that Calgary’s solar resource is the same as Rio de Janeiro’s.
Phillips said there are 7,000 MW of various renewables projects in the regulatory queue right now.
Program applicants must demonstrate community benefits such as revenue from electricity production, local jobs, training opportunities, new social programs or new infrastructure.
It will support a “contract for difference” model that guarantees a rate of return for electricity production over the long term and locks in rates for generators.
Up to $50 million from the fund will be dedicated to supporting community generation projects in areas affected by the phase-out of coal-fired electricity.
Al Kemmere, Rural Municipalities of Alberta president, lauded the program as “innovative” and said his members are looking forward to working with government.
“Rural Albertans are known for being self sufficient, and we believe that more opportunities that enable Alberta’s rural areas to invest in community only strengthen our local communities,” he said in a statement.
The province will undertake capacity-building efforts over the coming months to help communities prepare for the program before it launches in fall 2019.