Canadian Energy Perspectives Developments in Energy and Power Law

Category Archives: Power

Subscribe to Power RSS Feed
Canadian Energy Perspectives

Round 1 of Alberta’s Renewable Electricity Program Opens on March 31, 2017

Posted in Electricity, Energy – Renewable, Alternative and Clean, Independent Producers, Power, Procurement
Alberta

Renewable Electricity Program

The Government of Alberta announced that the Alberta Electric System Operator (AESO) will launch the first competition of the Renewable Electricity Program (REP) on March 31, 2017 with a Request for Expressions of Interest (REOI).  Additional details with respect to Round 1 and the REOI stage will be available here on March 31, 2017.

As detailed in a previous blog post with respect to the REP process, the stakeholder comments on the key provisions of the Renewable Electricity Support Agreement (RESA) and the first competition will procure up to 400 megawatts of renewable … Continue Reading

Ending the Cycle of Electricity Price Interventions in Ontario

Posted in Electricity, Power
Ontario

Every decade the government of Ontario freezes or cuts electricity prices because the costs of an ambitious energy policy prove to be politically unacceptable. This leaves future electricity customers paying for the cost of a failed experiment from a previous generation. We should learn from this experience and implement a governance model for the sector that reviews and mitigates costs before a policy is adopted, not after.

In 1993, the government froze prices because the costs of Ontario Hydro’s massive nuclear expansion were leading to double-digit rate increases. In 2002 the government froze prices because the electricity market opening resulted … Continue Reading

Emera’s Atlantic Link Proposal

Posted in Electricity, Energy – Renewable, Alternative and Clean, Power, Procurement, Transmission
New Brunswick

In early January 2017, Halifax-based energy and services provider, Emera Inc., initiated a solicitation process to procure clean energy for bundling with transmission capacity on its proposed Atlantic Link transmission project. The Atlantic Link proposal would deliver up to 900 megawatts (MWs) of energy from a new converter station to be constructed at Coleston Cove, New Brunswick to a new converter station to be constructed at one of two proposed landing sites in Massachusetts. The energy would be transmitted through an approximately 563 kilometer under water high-voltage direct current electric transmission line. The combined generation and transmission proposal is being … Continue Reading

Ontario Reducing Electricity Prices

Posted in Electricity, Power

The Ontario Government announced today that it will reduce electricity rates for residential consumers by 25% starting in summer, 2017. While the immediate steps for doing this are fairly straight forward, the consequences of this over the long term are unclear.

The plan is to reduce prices in two ways:

  1. it will transfer some costs (rural distribution costs and low income support) from rate payers to tax payers. The cost of doing this will be $2.5 billion over the next three years; and
  2. it will refinance a portion of the cost of global adjustment by extending the time for its
Continue Reading

“Going Once, Going Twice” – BC Hydro Revises Available Energy Volumes under SOP and Micro-SOP

Posted in BC Hydro, Energy – Renewable, Alternative and Clean, Independent Producers, Power, Procurement
British Columbia

On February 21, 2017, BC Hydro released new figures for its Standing Offer Program (“SOP”) and Micro-Standing Offer Program (“Micro-SOP”) showing that it has assigned nearly all of the available annual volume for projects with target commercial operation dates (“Target CODs”) in 2016, 2017, 2018 and 2019. BC Hydro had previously allocated up to 150 GWh/year of available energy volume for each of these Target COD years (under both the SOP and Micro-SOP), on a first-come, first-served basis. The newly-published figures show available energy volumes of zero, three, eight and zero GWh/year for projects … Continue Reading

Issuance of Request for Qualification for 200 MW of Wind Energy in Saskatchewan

Posted in Energy – Renewable, Alternative and Clean, Procurement
Saskatchewan

Last week, SaskPower, the provincial electricity production corporation for Saskatchewan, initiated a procurement process for 200 MW of wind energy for a fixed term of 25 years. The request for qualifications phase has begun and will be followed by a request for proposals later this year.

Saskatchewan has set a target to reduce 40 % of its greenhouse gas emissions below 2005 levels and to ensure that half of all electricity generated in the province originates from renewable sources by 2030. SaskPower seeks to procure new sources of energy through a competitive bidding process, as was the case for the … Continue Reading

Request for expressions of interest in New Brunswick for 40 MW of renewable energy

Posted in Energy – Renewable, Alternative and Clean, NB Power, Procurement
New Brunswick

NB Power, the provincial electricity production corporation for New Brunswick, announced on January 26, 2017 the launch of a request for expressions of interest to obtain 40 MW of electricity from local entities for contracts of no less than 20 years. Partners from outside of the province also may qualify for the program.

In November 2015, the government of New Brunswick adopted a regulation mandating NB Power to ensure that 40 % of total electricity sales in the province be generated from renewable sources of energy by the end of 2020. Entitled the Electricity from Renewable Resources Regulation, it … Continue Reading

AESO Releases Key Information regarding the Renewable Electricity Program and Announces an Education Session on Capacity Markets

Posted in Electricity, Energy – Renewable, Alternative and Clean, Independent Producers, Power, Procurement
Alberta

On January 19th and 31st, 2017, the Alberta Electric System Operator (the AESO) provided additional guidance regarding project eligibility, updated its timeline for the first competition under Alberta’s Renewable Electricity Program (REP) and posted the consolidated stakeholder comments on the key provisions of the Renewable Electricity Support Agreement (RESA).

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.… Continue Reading

Designing Alberta’s Electricity Capacity Market – AESO Commences Stakeholder Engagement and Education

Posted in Electricity, Power, Procurement
Alberta

On November 23, 2016, the Government of Alberta approved the restructuring of Alberta’s Energy Market from a fully deregulated regime to a hybrid system that will incorporate capacity payment mechanisms. This decision along with some key features of the Alberta Electric System Operator’s (the AESO) Wholesale Electricity Market Transition Recommendation Report are detailed in our recent blog post.

Stakeholder Engagement

The AESO is designing and implementing an Alberta-specific capacity market. In order to leverage the experience and expertise of stakeholders in this process, the AESO is carrying out a Design Criteria & Engagement Process that is expected to … Continue Reading

Alberta’s Renewable Electricity Support Agreement: McCarthy Tétrault Submission to the AESO on the Draft Term Sheet

Posted in Energy – Renewable, Alternative and Clean, Power, Procurement
Alberta

Almost a year after the provincial government released its Climate Leadership Plan, it tabled the Renewable Electricity Act (Act) and released details on its Renewable Electricity Program (REP).

Consistent with the Alberta Electric System Operator’s (AESO) earlier indications and as discussed in previous posts, renewable electricity will include wind, solar, hydro, geothermal, and sustainable biomass projects.  The REP is available to large scale renewable electricity generation (5 MW or greater total nominal capacity).  Under the Act, the AESO will administer “a fair and competitive process” for REP proposals to incentivize renewable generation in the Alberta in … Continue Reading

The New Current: Alberta Announces Overhaul of Electricity Market

Posted in Electricity, Energy – Renewable, Alternative and Clean, Power
Alberta

On November 23, 2016, the Government of Alberta announced the restructuring of Alberta’s electricity market, from a fully deregulated regime to a hybrid system that incorporates capacity payment mechanisms.

Alberta is one of the few jurisdictions in the world with an “energy-only” market.  This means that Alberta generators only recover the wholesale price of electricity.  Investors are only able to recover invested capital if they can leverage high-priced hours, and in this way, the energy-only system contains the risk of supply instability and may not promote investment in generation facilities and, in particular, renewable energy sources.… Continue Reading

Large Renewable Procurement II – Ontario Suspends LRP II

Posted in Energy – Renewable, Alternative and Clean, Independent Producers, Ontario Independent Electricity System Operator, Power

On September 27, 2016, the Minister of Energy of Ontario issued a policy direction to suspend the Large Renewable Procurement II (“LRP II”) process. In response to this direction, the IESO cancelled the first phase of the LRP II (the Request for Qualifications (“RFQ”)) and will not commence the second phase of the process (the Request for Proposals (“RFP”)).

Launch of LRP II Process

The LRP II was announced on April 5, 2016 with procurement targets of 600 MW of wind, 250 MW of solar, 50 MW of waterpower, 30 MW of bioenergy and … Continue Reading

30 by 30: Alberta Announces Hard Targets in Alberta Renewables

Posted in Electricity, Energy – Renewable, Alternative and Clean, Power, Utilities
Alberta

On September 14, 2016, the Alberta Government announced its firm target that 30% of electricity used in Alberta will come from renewable sources such as wind, hydro and solar by 2030.  In order to achieve this, the province intends to support 5,000 MW of additional renewable capacity.

The province’s 30 by 30 announcement also provides useful details regarding eligibility for the Renewable Electricity Program (or REP).  Projects must:

  • be based in Alberta,
  • be new or expanded,
  • be five megawatts or greater in size, and
  • meet the Natural Resources Canada definition of renewable sources.
Continue Reading

Large Renewable Procurement II – Final LRP II RFQ Materials Posted

Posted in Energy – Renewable, Alternative and Clean, Independent Producers, Ontario Independent Electricity System Operator, Power
Ontario

On July 29, 2016, the IESO posted the final materials for the Large Renewal Project II (“LRP II”) Request for Qualifications (“RFQ”). Draft materials were posted on June 27, 2016 and the IESO solicited feedback from potential applicants and industry groups. As a result of this consultation, minor changes were included in the final materials for the LRP II RFQ.

As previously noted in detail in our post on July 15, 2016, the two major changes to the LRP II RFQ process are the introduction of the simplified process for LRP I Qualified Applicants (“… Continue Reading

Large Renewable Procurement II – IESO Webinar re: Upgrades of Existing Facilities

Posted in Energy – Renewable, Alternative and Clean, Independent Producers, Ontario Independent Electricity System Operator, Power
Ontario

On July 21, 2016, the IESO hosted a discussion on the portion of the Large Renewable Procurement II (“LRP II”) process pertaining to technological upgrades and optimization of existing renewable facilities. This discussion provided potential applicants with an opportunity to provide comments and feedback to the IESO as to the types of technologies that should be included in the LRP II process, procurement considerations for such technologies and contractual considerations.

Prescribed Form – Technical Upgrades and Optimization

The Prescribed Form for Technical Upgrades and Optimization is required for applicants submitting an RFQ for a technological upgrade and optimization … Continue Reading

Large Renewable Procurement II – IESO Webinar and Process Updates

Posted in Energy – Renewable, Alternative and Clean, Independent Producers, Ontario Independent Electricity System Operator, Power, Procurement, Purchase Agreements
Ontario

As previously noted, the IESO is currently developing the Large Renewable Procurement II (“LRP II”) process. Consistent with LRP I, the LRP II process will involve two phases: a Request for Qualifications (“LRP II RFQ”) and a Request for Proposals.

On July 13, 2016, the IESO hosted a webinar to provide an overview of the LRP II RFQ process and the changes it has introduced following the feedback received on the LRP I RFQ process. The IESO indicated that the LRP II RFQ process is substantively similar to the LRP I RFQ process. Two key topics … Continue Reading

Large Renewable Procurement II

Posted in Energy – Renewable, Alternative and Clean, Independent Producers, Ontario Independent Electricity System Operator, Power, Procurement, Purchase Agreements

On June 27, 2016 the IESO posted the draft Request for Qualifications (LRP II RFQ) and associated Prescribed Forms on the LRP Engagement page for review and comment.  According to the IESO, the LRP II RFQ builds on the LRP I RFQ and on the feedback received on the LRP I process, and the policy direction from the Minister of Energy.

 Comments and feedback on the draft LRP II RFQ and the associated Prescribed Forms are due by July 14, 2016 and can be provided via email to engagement@ieso.ca using the feedback form available on the LRP Engagement page.  In Continue Reading

The AESO’s Renewable Electricity Incentive Program Marches Forward

Posted in Climate Policy, Electricity, Energy – Renewable, Alternative and Clean, Power, Procurement, Utilities
Alberta

As noted in an earlier post, on March 3, 2016, the government announced that the Alberta Electric Systems Operator (AESO) has been chosen under the province’s Climate Leadership Plan to develop and implement a renewable electricity incentive program (Renewable Electricity Program or REP) to add additional renewable generation capacity into Alberta’s electricity system.

The expected timeline of this process is as follows:

Q1-Q2 2016

Phase 1 of stakeholder engagement process closed on March 24, 2016.

May 2016

Provincial government has requested AESO’s draft recommendations on program design.

Q2-Q3 2016

Program development.

Q4 2016

First competition for new REP
Continue Reading

Ontario Court of Appeal rules OEFC changes to calculation of price adjustment index breach the terms of power purchase agreement

Posted in Electricity, Independent Producers, Power, Purchase Agreements
Ontario

On April 19, 2016, the Ontario Court of Appeal released its decision in Iroquois Falls Power Corporation v. Ontario Electricity Financial Corporation. The decision concerned a dispute between several non-utility generators (“NUGs”) and the Ontario Electricity Financial Corporation (“OEFC”) over changes to a price adjustment index contained within the long-term contracts for the purchase of electricity generated by the NUGs.

This change affected a component portion of a measure known as Total Market Costs (“TMC”), which measure was used to derive the price adjustment index. At the heart of the dispute was an … Continue Reading

Phase I of Ontario’s Large Renewable Procurement Process Concluded

Posted in Electricity, Energy – Renewable, Alternative and Clean, Ontario Independent Electricity System Operator, Power, Procurement, Projects
Ontario

The Independent Electricity Systems Provider (IESO) has announced that the 16 contracts offered on March 10, 2016 for Phase I of the Large Renewable Procurement process (LRP I) have now been signed and executed. The execution of the contracts concludes the LRP I process. Moving forward, contracted projects will be required to obtain all necessary licenses and approvals before they can be constructed and operated. These processes are separate from the IESO’s procurement activities and will involve additional community engagement.… Continue Reading

Ontario Launches Phase II of the Large Renewable Procurement Process

Posted in Electricity, Energy – Renewable, Alternative and Clean, Ontario Independent Electricity System Operator, Ontario Ministry of Energy, Power, Procurement, Project Finance
Ontario

The Ontario Ministry of Energy has announced the launch of the second phase of the Large Renewable Procurement (LRP) process (LRP II). The LRP is a competitive bid process for procuring large renewable energy projects in Ontario larger than 500 kilowatts.… Continue Reading

Phasing Out Coal: Alberta Names the Coal Facilitator

Posted in Climate Change, Climate Policy, Coal, Emissions Regulation, Energy – Conventional, Power
Alberta

On March 16, 2016, the Government of Alberta finally named the coal facilitator, and announced the next steps for its plan to phase-out coal by 2030.  The province appointed Terry Boston to act as the province’s independent coal phase-out facilitator, and released details of Boston’s mandate and next steps.

Boston’s Prior Experience

Boston is the recently retired CEO of PJM Interconnection (PJM), which is a regional transmission organization in the United States.  PJM controls approximately 105,502 km of transmission lines and manages 186,000 MW of generation serving 61 million people.… Continue Reading

BC Hydro Releases Long-Anticipated Updates to Standing Offer Program and Introduces Micro-Standing Offer Program

Posted in BC Hydro, Electricity, Energy – Renewable, Alternative and Clean, Independent Producers, Procurement, Purchase Agreements
British Columbia

Updates to the Standing Offer Program (SOP)

On March 4, 2016, BC Hydro released a new version (Version 3.1) of its SOP Rules to address feedback it received during First Nation and stakeholder consultation meetings and focus group discussions conducted over the last few years. The SOP offers small-scale, clean energy projects in British Columbia with capacities between 100 kW and 15 MW the opportunity to enter into energy purchase agreements (EPAs) with BC Hydro. An EPA requires the project developer to sell all energy from the project to BC Hydro for a term of 20 to 40 … Continue Reading

LRP I Results

Posted in Community Projects, Ontario Independent Electricity System Operator, Power, Procurement, Project Finance, Projects
Ontario

Today, the Independent Electricity Systems Operator (IESO) announced the results of the Large Renewable Procurement (LRP) I program. The LRP is a competitive bid process for procuring large renewable energy projects in Ontario generally larger than 500 kilowatts.

In response to 103 proposals received, the IESO offered 16 contracts representing 454.885 megawatts (MW) of renewable energy capacity. Of the successful proposals, 13 projects representing 336.8 MW include participation from one or more Aboriginal communities, including 5 projects with greater than 50% participation. More than 75% of the awarded proposals had received support from local municipalities with more than 60% support … Continue Reading