Major investment in region as trio of proposed wind farms win contracts, could be in service in 2021

By Collin Gallant on December 17, 2018.

cgallant@medicinehatnews.com
@CollinGallant

Three proposed wind farms within range of Medicine Hat have won long-term supply contracts and could be built and in service by 2021, the province announced early Monday as the results of this autumn’s renewable energy auction were released.

Five projects in total represent 760 megawatts of new generation capacity and represent $1.2 billion in private sector investment.

The 20-year contracts to supply the Alberta grid with electricity at an average price of 3.9-cents per kilowatt hour – a rate near record lows posted in the 2017 Alberta power auction.

Near Medicine Hat, France-based firm EDF Renewables will move ahead with a 202-megawatt Cypress wind project in partnership with the Kainai First Nation.

Ontario-based Potentia Renewables will build two phases, comprising 193 megawatts of its project at Jenner.

Capston Infrastructure’s Bufalo Atlee wind farm, to be located on land 10 kilometres southeast of Jenner, will produce 48 megawatts.

“EDF Renewables is very pleased to be investing in Alberta,” stated EDF vice-president Cory Basil in a statement that framed Alberta as the “most competitive and successful” market for renewable energy. “We’re proud to be partnering with the Kainai First Nation (Blood Tribe) on the Cypress Wind Project. It will create hundreds of well-paying jobs, invest millions into Cypress County and Alberta’s economy, while generating affordable renewable electricity for Albertans.”

Further afield in southern Alberta, Potentia also was awarded a contract for the 113-megawatt Stirling wind project, and, as well, TransAlta’s 207-megawatt Windrise field is located near Fort Macleod

Potentia’s two projects has budgetted to cost $500 million to construct.

“We look forward to continuing to work with … our host communities and landowners to deliver clean power to the Alberta grid, along with the jobs and local economic growth that accompany projects like these.” said Jeff Jenner, CEO of Potentia Renewables.

Last year Capital Power’s Whitla Wind Farm, south of Bow Island, was one of four projects awarded contracts in the supply auction. Construction of that facility, budgetted to cost $310 million to construct 

The supply contracts guarantees a minimum price regardless of market price, with the lower difference paid out of carbon levy funds. When market prices rise above the contract price, companies pay back into the fund.

“Our made-in-Alberta plan is working to once again turn Alberta’s renewable energy resources into new jobs and investment in communities across the province, while producing the lowest-cost power available for Albertans,” said Environment Minister Shannon Phillips.

This year, the province proceeded with Rounds 2 and 3, of the program that aims to have 30 per cent of Alberta’s power production come from renewable power by 2030. One round included a provision that projects benefitted from at least 25 per cent ownership by Indigenous communities.

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