This post provides an overview of the new details regarding the
REP and an update with respect to the upcoming AESO education
session on Alberta's capacity market to be held in Calgary on
February 7th, 2017.
1.Alberta's Renewable Electricity Program
"New" and "expanded"
The REP is only available for new and expanded projects and the
AESO's recent guidance clarified for the first time what this
New projects may include
reusing a previous site, but only if:
there has been no renewable
generation on that site since September 1, 2016; and
all generating units and other
equipment and facilities are new. However, pre-existing
transmission lines and infrastructure such as roads and utility
services will not disqualify a site.
must be true expansions. The REP cannot be used to replace existing
renewable energy generation, or any generating units or equipment
that have been in use at any point since September 1, 2016. An
expansion project must be separately metered from any pre-existing
In order to prevent collusion during the bidding process, the
AESO has limited participation in multiple REP projects. A party
may only be a "Control Team Member" (a party who owns or
controls a majority interest in a project, or who is a Project Team
Lead) for one project. However, that party may still be a
"Non-Control Team Member" (a party with a minority
interest or other involvement who is a not a Project Team Lead) in
Project timelines and fees
The first stage, the Request for Expressions of Interest (REOI),
is set to commence in late March 2017.
The second stage, the Request for Qualification (RFQ) is
scheduled for April 2017. At this stage, bidders must demonstrate
compliance with the following three categories:
financial strength and capacity,
including a demonstrated commitment for 51% of the required project
equity, from providers with a tangible net worth of at least
$250,000 per MW of proposed project capacity (proportionate to the
amount of their investment). For example, a 40% equity provider on
an 8 MW project must have a tangible net worth of at least $800,000
in order to count; and
development, construction and
At the RFQ state, bidders are also required to pay a competition
fee. The fee for a first bid is calculated as $1,000/MW of
nameplate capacity, although with a minimum competition fee of
$10,000 and a maximum fee of $50,000, projects in the 5 to 10 MW
range will be paying the same fee, as will those 50 MW or greater.
The competition fee payable for any subsequent bid by the same
bidder is a flat fee of $2,500.
The third and final stage, the Request for Proposal (RFP), has a
target date of mid-September 2017, with the successful projects to
be selected in December 2017.
Consolidated Stakeholder Feedback on the Renewable Electricity
The AESO released the redacted stakeholder feedback on the key
provisions of the RESA. These redacted comments can be found here.
The AESO indicated that it is still conducting its review of the
stakeholder comments and intends to provide updated RESA term
sheets at the REOI stage (late March 2017) and a full form of RESA
at the RFQ stage (April 2017).
2. Capacity Market Design Education Session
The AESO also announced that it will hold a capacity market
design education session on the afternoon of February
7th, 2017, at the Metropolitan Conference Centre in
Calgary. The AESO has engaged Charles River Associates to present
at this session.
Stakeholders will also be able to participate remotely. Further
details, including RSVP information (for both in person and remote
attendance), are available here.
Although sustainable biomass was included as a renewable energy
resource in the Sustainable Electricity Act passed in
October 2016, it appears that further details are yet to be
released regarding what types of biomass will be eligible for the
REP. Stay tuned for further updates.
In January 2017, in ABAER 001 - Bonavista Energy Corporation A Regulatory Appeal of Two Well Licences and an Application for a Pipeline Gilby Field (Bonavista case), the Alberta Energy Regulator (AER) issued the first of its decisions for 2017 ...
March 29, 2017 – Cenovus Energy Inc. ("Cenovus") agreed to acquire ConocoPhillips's 50% interest in the FCCL Partnership, which is the companies' jointly owned oilsands venture operated by Cenovus. Cenovus is also purchasing the majority of ConocoPhillips's Deep Basin conventional assets in Alberta and British Columbia.
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