CanWEA commends Alberta Government announcement on the next rounds of its renewable energy procurement

On Monday the Honourable Shannon Phillips, Alberta’s Minister of Environment and Parks, announced the details of the next two renewable energy procurements in Alberta. These new rounds of the Renewable Energy Program will contribute to Alberta’s efforts to accelerate the replacement of existing greenhouse gas emitting electricity generation with the zero-carbon emitting power of wind energy and other renewable electricity generation.

As announced today, the Alberta Electric System Operator will secure an additional 700 megawatts (MW) of renewable power as part of its plan to add 5,000 MW of renewable energy capacity by 2030. The second round will procure 300 MW and will also require that projects be equity partnered with Indigenous communities. This approach provides an additional opportunity for Indigenous communities in Alberta to share in the economic benefits of wind energy development. The third round will procure 400 MW and will be run similarly to round one, which produced the lowest-ever price for wind energy generation in Canada.

“Today’s announcement is a clear signal that Alberta is ‘open for business’ for renewables. There is significant global competition for new investments in wind energy, and the new procurement opportunities outlined today provide the clarity and consistency needed for investors to continue to prioritize Alberta as a destination for new investment. We look forward to working with the government and stakeholders to ensure the continued success of the program that will deliver significant economic benefits to Albertans,” says Robert Hornung, President, Canadian Wind Energy Association.

“The government’s commitment to Indigenous community participation in the economic benefits of the renewable energy program is a commitment the wind industry shares. Across the country we have seen positive economic offshoots from Indigenous community partnerships. We expect strong participation from the wind industry in these next rounds of the procurement and we look forward to seeing the results,” says Evan Wilson, Regional Director – Prairies, Canadian Wind Energy Association.

Background

• On December 13, 2017, the Alberta Electric System Operator (AESO) and the Government of Alberta awarded 592 MW of contracts for wind energy as a result of the first round of the Renewable Electricity Program (REP). The weighted average contract cost of $37 per megawatt hour was the lowest-ever price for wind energy generation in Canada and positions wind energy as the lowest cost source of new generation in Canada.
• The Alberta government’s efforts to encourage development of the province’s abundant wind energy resource has been an incredible success to date. For more insights, read the blog by Evan Wilson, CanWEA Regional Director, Prairies: Made-in-Alberta Procurement Process Harnessed Competitive Market Forces Getting Best Deal for Consumers
• The Alberta Wind Energy Supply Chain Study provides an analysis of the economic opportunities driven by Alberta’s Renewable Energy Program including; an estimated $3.6 billion in local spending on project development and construction; an estimated $137 million in operations and maintenance spending in Alberta; 15,000-person years direct employment; and $25.5 million in property taxes and $13.5 million land lease payments to Alberta landowners. The report also provides three recommendations for how Alberta can build on its strengths and realize the opportunities associated with developing its wind energy sector.
• Alberta has 1,479 MW of wind energy, the third largest installed capacity among Canadian provinces. Wind currently supplies about eight per cent of the province’s electricity demand, and Alberta’s target of 30 per cent renewable electricity by 2030 has made it the leading market for new wind energy development in Canada. To learn more, please visit the Wind Markets section of CanWEA’s website.