Green energy auction could mean big investment

By Collin Gallant on September 16, 2017.

cgallant@medicinehatnews.com @CollinGallant

Friday marked the beginning of the end of the first green energy auction in Alberta, a process companies and local economic developers say has lingered on, but could result in massive utility investment in the region.

Alberta’s Energy Ministry says 29 proposed wind and solar projects will be considered for long-term supply contracts to be awarded by the end of the year.

Those bids represent about 4,000 megawatts of generating capacity — about 10 times more than the amount the province is willing to buy in the first year.

“The strong response from industry shows investors think we’re on the right track with this program, providing new economic opportunities and bringing the most renewable generation online at the lowest cost,” said Energy Minister Margaret McCuaig-Boyd in a statement.

The goal is to have 5,000 megawatts of green production capacity in place by 2030, making up about 30 per cent of Alberta’s demand.

Details and locations of the projects are not being released, but over the past two years, city and regional economic developers have advertised intense interest in locating renewable energy facility in the southeast.

A host of proposals are already on the books with the Alberta Electrical System operator, but companies have argued they were stalled in a catch-22 of not being able to secure financing without price certainty.

The province announced last year the auction, which awards contracts to the lowest price, would help companies secure financing for capital projects estimate to cost upwards of $200 million in some cases.

Industry estimates run about $2 million to construct one megawatt of generating capacity, meaning one major facility would be a major economic injection to wherever plants are situated.

The list does include provincial, national and international companies, said McCuiag-Boyd, but particulars will not be disclosed.

A list of companies that took part in initial stages last winter shows notable companies with local proposals in the advanced stages of development.

Among them is the oldest proposal on the books with the Alberta Electrical System Operator.

The Pteragen 116.4-MW Peace Butte Wind Farm in Cypress County was first proposed in 2005, about the time a two-phase plan by Naturener to construct 300-MW total wind production.

Among the other companies with projects in Southeastern Alberta include:

— EDF Canada has four sizable wind farms on the drawing boards, including 250-MW facilities in “Red Rock” and “Cypress” (each in the in the Medicine Hat AESO planning district), as well as a 100-MW solar proposal for Vauxhall.

— Capital Power, the Edmonton-based former Epcor generation wing, told investors in late 2016 it would put its Whitla 150-MW wind farm project in the auction. It is also progressing a 300-MW farm in Halkirk.

— Naturener, beyond Wildrose plans, has made initial applications to build two separate 100-MW wind farms in Medicine Hat’s AESO planning zone. They are known as “Ross Creek” and “Buffalo Trail.”

— Acciona Energy inserted its 125-MW wind farm plan for “Forty Mile” into the AESO queue this summer.

— Blue Earth Renewables, is at the advanced stages of planning for 15-MW solar plant at Burdett and a 17-MW solar plant at Yellow Lake. It’s most advanced project is an 80-MW wind farm for the Hanna area.

— Invenergy Wind Global, 100-MW wind farm, Schuler area.

— Renewable Energy Systems Canada, 100-MW wind farm, Schuler area.

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