RENEWABLE ENERGY: OPPORTUNITIES FOR COMMUNITIESSharing the benefits of Renewable Energy Development

Alberta - Renewable Energy

Targets

In late 2015, the Government of Alberta introduced the Climate Leadership Plan to reduce carbon emissions and diversify the economy.

The key aspects of this plan are as follows:

Phasing out coal-generated electricity by 2030

Reducing emissions from oil and gas sector

Creating Energy Efficiency Alberta to create cost saving programs

Implementing a carbon price

Increasing renewable energy by over 300% to supply 30% of

generation needs by 2030, equivalent to 5GW capacity

Alberta - Renewable Energy

ProgramRenewable Energy Program (REP) announced in late 2016. REP is a series of competitive rounds to secure new renewable energy in the province. Results have provided very competitive pricing:

REP 1 – 600MW, at an average price of $37.35/MWh

REP 2 – 363MW, at an average price of $38.69/MWh

REP 3 – 400MW, at an average price of $40.14/MWh

REP winners:

Capital Power

EDP Renewables Canada Ltd

Enel Green Power North America Inc

Capstone Infrastructure Corporation

EDF Renewables Canada Inc

Potentia Renewables Inc

TransAlta CorporationSource: AESO REP Results, Infographics

$200-million fund set-up to facilitate investment in community-scale renewable energy projects by guaranteeing the price they receive for the power they produce. Launching Fall 2019

The “Capacity Building” aspect of the program was launched in January. This will provide grant funding to communities (of up to 100% to $200k) for work including:

Communities

Municipal Governments and Municipal

Agencies

Non-Profit Organizations

Condominium corporations

Co-operativesEducational institutions

Métis Settlements

First Nations

Type 1: Technical development activities

Type 2: Partnership development activities

Type 3: Development of tools and training

Governed by the Small Scale Generation Regulation

Power price will be guaranteed through a “Contracts for Difference”, or CFD type model, locking-in a rate for generators. How this system works in the UK is further explained here

Community Generation

ProgramEligible Groups

100% Ownership

Joint Venture

Split Ownership

Community Benefit Package

Community Ownership Models

• Project 100% owned by the community • All benefits go directly to community• Can be difficult to finance

• Project timescales usually significantly increased

• Requires strong leadership and management on community side

• Project jointly owned by community and a developer

• Risk to community reduced by leaning on developer

• Requires early engagement between community and developer

• Each party responsible for raising percentage of project equity

• Community benefit fund provided by project developer to the local community

• Usually where communities want to be involved and support the project but are not in a position to develop or own a generating asset

• Project divided into two separate generating units

• Developer takes on development risk and invites community to purchase part of the project

• Community will own generating asset outright

Alberta: Innisfail Solar Project

Permitting work complete and application filed with the Alberta Utility Commission during December 2018

Municipal Development Permit approved by the Town of Innisfail

Project capacity anticipated to be 20MWdc

Targeting build-out during summer / fall 2019

Developer led and owned owned project with Community Benefit Package, no risk for community

Located on municipal land to north of town, the Community will receive revenue through land lease, rent and property tax

Community endowment fund of $1,000 per MW installed annually to support local social and cultural projects for the life of the project

Application process managed by the Alberta Utilities Commission, Alberta’s independent utilities regulator, under Rule 007.

Key supporting processes and documentation include:

Participant Involvement Process

Environmental Evaluation and Alberta Environment and Parks Referral

Noise Impact Assessment (Rule 012)

Historic Resource Act Approval

Glint and Glare / Shadow Flickers Assessments (if applicable)

Site Layout and Electrical Design Schematic (Single Line Diagram)

The Alberta Utilities Commissions and partners are currently reviewing the permitting requirements for permitting Community Generation projects. Expectations are that requirements will not significantly deviate from the requirements of Rule 007.

Alberta: Community

Generation Permitting Process

Alberta: Community Generation

Grid Connection Process

Application process managed by the Alberta Electric System Operator (AESO).

Community Generation Projects must be connected to the distribution network, and export generation to the grid.

There are several Wire Service Providers in Alberta, including FortisAlberta; ATCO ENMAX and EPCOR.

Grid Application Process, where to start?

1 - Identify project and pre-application consultation

2 – Grid application and high level study

3 & 4 – Distribution and transmission studies

5 & 6 – Final proposal and construction

Market Comparison – Scotland

Source: Historic Regional Statistics and BEIS Energy Trends

Source: Local Energy Scotland and Map data © GeoBasis-

DE/BKG (© 2009), Google

Community and Locally Owned Projects

Case Study: Loch Carnan

Remote island community, 2,900 residents

Complex constraints to manage and challenges to overcome

Mean wind speed almost 11m/s

Revenue generated reinvested into wider projects on the island including regeneration of the Loch Boisdale Harbour creating permanent and long term employment

Extension project for an additional 3 wind turbines in permitting phase, extension will also be 100% owned by the community Source: Green Cat Renewables Ltd, Loch Carnan Wind Project

100% community owned

3 x Enercon E70 wind turbines, 6.9MW installed capacity

Joint venture between community and developer partner

3 x Nordex N90 wind turbines, 7.5MW installed capacity

Case Study: Hoprigshiels

Source: Prelec Ltd, Hoprigshiels Wind Project

Annual production estimated at 24,500GWh

£20m (approx. $34m Canadian Dollars) generated over project life to build over 500 affordable homes in the community

Additional £40,000 ($69k) per annum community fund to local community

Local suppliers and services utilised throughout construction

Annual rent payment to landowner – a local farmer

Farming operations to continue around the turbine infrastructure

Developer owned project, with benefit fund

3 x Enercon E-82 wind turbines, 7.05MW installed capacity

Case Study: Deuchries

Source: Green Cat Renewables Ltd, Deuchries Wind Project

Local suppliers and services utilised throughout construction

Annual rent payment to three landowners (farmers, farming operations to continue around the turbine infrastructure

2 turbine extension, with storage planned, permitting submitted and targeting build-out during 2020.

Community benefit fund of over £600,000 (>$1m) over life of project

First check was received by the community during August 2019, for £26,527.83 (~$45k)

Project was developed, project managed, designed and constructed by Green Cat Companies.

Construction/Turbine Erection Video

Benefits of Renewable Energy

for Communities

Autonomy: Long term income and independent control over finances in areas where there is usually few options to generate wealth

Community Empowerment: Development of local skill sets and confidence locally and a more active, engaged society which yield greater self determination of resources

Resilience: A more stable environment/economy that is better protected against the impact of fluctuating fuel prices

Education: Renewable projects attract schools and colleges, providing direct experience of application of science and technology

Creation of jobs: Planning, survey and engineering tasks provides the local community for employment opportunities

Walton, M. (n.d.). Social and Economic Benefits of Community Energy (Publication).

Calum MacLennan

Senior Project Manager

T: 866 216 2481

C: 403 540 7782

E: calum.maclennan@greencatrenewables.ca

W: www.greencatrenewables.ca

Contact Information