Ottawa signs deal for renewable credits at planned Cypress solar farm

By Medicine Hat News on October 19, 2024.

@MedicineHatNews

A planned solar farm in Cypress County has signed an off-take deal for renewable energy credits with the federal government.

Alderson Solar, proposed by German renewable developer “hep solar,” was approved by the Alberta Utilities Commission last spring.

On Tuesday, Ottawa announced that as part of its net zero goals, it would purchase a portion of carbon credits produced by the project over the next 20 years to offset the use of carbon intensive power at federal facilities in the province.

A contract with hep and another Canadian developer will total $73 million over its lifespan, but a specific breakdown was not provided.

“The Government of Canada is committed to being a global leader in fighting climate change and investing in green technology,” said Jean-Yves Duclos, federal minister of Public Services and Procurement.

“These Renewable Energy Certificate contracts support our goal to have federal buildings powered with 100 per cent clean electricity, while stimulating growth in the renewable energy sector.

“By greening our federal operations, we are supporting Canadians with a healthier environment and a stronger economy.”

A federal government release names Alberta-based Switch Power and partner South Head Energy, as the other contracted entity .

Officials with hep stated the deal secures for Ottawa 30 per cent of the credits produced by the 100-megawatt array that would sit on 660 acres of private land located about two kilometres north of the Trans-Canada Highway between Tilley and the Hamlet of Suffield.

After it was first proposed in 2016, the company received final approval from the Alberta Utilities Commission in May with a required completion date in late June 2026.

“Selling to the Canadian government at a fixed price over a fixed period of time has a positive impact on the project sales and thus on the net present value,” said Thorsten Eitle, hep solar’s chief sales officer.

The construction timetable is being finalized, said a company release.

Spark, which provides facility development and management services, also operates in Ontario and Saskatchewan. South Head Energy is an Indigenous-owned enterprise located near Orillia, Ont., north of Toronto.

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