POST Online Media Lite Edition


Canada's Alberta gets record low wind bids

Staff Writer |
The Canadian Wind Energy Association (CanWEA) commends the Alberta Electric System Operator (AESO) and the Government of Alberta for the successful implementation of the first phase of its Renewable Electricity Program (REP).

Article continues below

That has resulted in the lowest-ever price for wind energy generation in Canada.

As announced today, the AESO will secure power from four new wind energy projects representing approximately 600 megawatts (MW) of capacity at an average price of $37 per megawatt-hour.

The three companies behind these four projects have each signed a 20-year Indexed Renewable Energy Credit (IREC) agreement with the AESO, providing predictable revenues while protecting Albertans against increases in the price of power.

Under the IREC, when the market price is lower than the contracted price, the generator will be paid the difference and when the market price is higher, generators will be required to pay back the difference to the government.

The competitive nature of this procurement process was critical to achieving a low-cost result.

In total, 29 projects representing over 4,000 MW of renewable energy were qualified to participate in this initial process, and the great interest shown by renewable energy producers means that Alberta is well positioned to succeed in its goal of procuring 5,000 MW of new renewable energy in the province by 2030.

The wind energy industry looks forward to details on the schedule of future procurements for new renewable energy and will be active participants in the process.

What to read next

Germany onshore wind auction fetches unexpected low price
Germany sets out details for first offshore wind auctions
Alberta province may go to recession due to oil prices