Green energy auction decision today
Economic development director says announcement could include ‘the best news for our region in some time’
Today is decision day for a first round of green energy supply auction that could mean hundreds of millions of dollars of utility construction in southeast Alberta.
Premier Rachel Notley and the ministers of energy and the environment have scheduled a 1 p.m. press conference in Calgary to announce “the successful project bids from the competitive first round of Alberta’s Renewable Electricity Program.”
It will award long-term supply contracts, which major utility companies say are a crucial component to secure financing for windfarms and solar projects.
The announcement would coincide with the One Planet Summit on now in Paris involving most signatories of the Paris Climate accord.
Wednesday’s announcement in Calgary will be watched closely by local economic developers who have long touted the area as having “world-class” potential for wind and other renewable energy production.
The province has made it a goal to add 5,000 megawatts of renewable power to the grid by 2030 as coal plants are scheduled to retire.
Several projects in the Medicine Hat area have been on the books for about a decade while companies have said long-term supply contracts are critical to acquiring financing.
The province will award contract or contracts to firms to supply 400-megawatts of low-carbon power for delivery starting in 2019, and then another 400megawatt contract in each successive year.
“It’s absolutely exciting,” said Theresa Hardiker, executive director of the Economic Development Alliance of Southeastern Alberta.
“We’ve talked about being ahead of the curve for a long time, but we’ve also had to sit and wait.”
Her group, representing towns and counties in the region, along with Medicine Hat College and other groups hosted the SEEDS energy diversification conference last spring. On Tuesday, she said beyond jobs for plant construction, new utility-scale green energy facilities would provide benefits in servicing, power line and substation construction and maintenance, plus lease payments to landowners and tax revenue for municipalities.
“It would be the best news for our region in some time.”
The Alberta Electricity Systems Operator received formal bids in September, and administrators have said the lowest price is the largest determining factor for awarding contracts.
While bid and supply prices are secret, a half dozen proposed wind farms are within a 100 kilometres of Medicine Hat.
More than 20 advanced projects across the province could be running, though industry analysts expect two or three to secure supply contracts for the 400 megawatts that will be awarded.
The News was the first to reveal last December that Edmonton-based Capital Power would enter its planned 300-MW wind farm that would be built in two phases near Whitla.
Suncor has proposed a 160-turbine facility on land near Bow Island, beside another similar sized facility planned by Renewable Energy Services Canada.
Also, EDF-EN Canada has two planned facilities totalling a 250megawatt capacity located in the region.
The Naturener’s Wild Rose I and II proposals, to be built in Cypress County were first approved by regulators in 2006, and would total 310megawatts.
Other companies have applied to the Alberta Utilities Commission for potential projects in Oyen, Taber, Jenner and the Lethbridge area.