Government of Alberta opens 700 MW renewable tenders

This article is part of a daily series of IPP articles. If you want to know more about the latest power generation projects globally visit our IPP Today section. You can receive them by email on a daily basis.

The Alberta Electric System Operator (AESO) has opened Rounds 2 and 3 of its Renewable Electricity Program (REP), devised to support the Government of Alberta’s target of 30% renewable electricity by 2030. Expressions of Interest (EOI) for both rounds are invited until 20 April 2018.

The tenders were jointly announced by the government in February, as reported on this platform. 

The procurement target for Round 2 is up to 300 MW. Eligible projects must be located in Alberta, a province in Western Canada, and be able to connect to the existing distribution or transmission system. The minimum generation capacity is 5 MW. Also, the projects must achieve commercial operation by 30 June 2021.

AESO have also included a minimum Indigenous equity ownership component in the tender. Projects must be at least 25%-owned for a minimum of three years following commercial operation by Indigenous communities located in the Province of Alberta, specified as either First Nation communities, Metis Settlements, Metis Nation of Alberta, and the Aseniwuche Winewak Nation, or alternatively 100% Indigenous community-owned organizations and/or businesses.

This component is intended to encourage greater participation by Indigenous communities in Alberta’s broader electricity sector and the development of renewable electricity, create the greatest degree of competition and provide the lowest cost for Albertans. AESO alleges that it has deliberately extended timeframes to provide more time for participants to develop partnerships and meet competition requirements.

Round 3 shares the majority of the above criteria, except that there is no Indigenous equity ownership component and the procurement target is slightly higher - 400 MW.

The RFQs will open on 27 April 2018, with submissions due on 21 June, followed by the RFPs on 17 September with a deadline of 23 October 2018. Projects will be awarded in December 2018.

Successful bidders will enter into Renewable Electricity Support Agreements (RESAs) to develop, finance, build, own, operate and maintain the projects proposed. There are no restrictions on the sources of renewable energy to be utilised in the projects submitted.

For more information on the tenders, see the Business Opportunities section of our website.