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    Background and resources

    The Government of Alberta has tasked the AESO to develop and implement a program to bring on new renewable generation capacity. Through the Renewable Electricity Program, an additional 5,000 megawatts of renewable energy capacity will be brought onto the system by 2030. On Nov. 22, 2015, the Government of Alberta announced its Climate Leadership Plan (CLP).

    The CLP outlined policy direction for the Renewable Electricity Program, including the principles of:

    • Ensuring the electricity system continues to be reliable
    • Accomplishing the transition with policies that fit with Alberta’s unique energy market
    • Using a market mechanism, such as auctioning, to keep the costs of renewables as low as possible

    Renewable Electricity Report recommendations

    The AESO provided its recommendations regarding the REP to the GOA in May 2016. Recommendations were based on research and engagement activities between January and April 2016, including a third-party review of renewable procurement programs in other jurisdictions. Since the government approved the AESO's recommendations for the program and first competition on Nov. 3, 2016, the AESO has been finalizing detailed aspects of the timing and specific provisions of the first competition. 

    While the recommendations within the report provide guidance for this work, we have engaged and will continue to engage stakeholders to further inform refinement of the first competition.

    • To view the REP Recommendations please click here

    About an Indexed REC

    The first competition will utilize an Indexed Renewable Energy Credit (REC) or “Contract for Difference.”

    A REC is a way of paying renewable generators who win contracts through REP for the attributes they produce. A winning bidder is paid a $/MWh payment as follows:

    • The winning bidder bids a price that is, in essence, its lowest acceptable cost for the renewable project the bidder plans to advance. The competition puts downward pressure on the cost of renewable projects.
    • The dollar value of support paid to the winning bidder for renewable attributes produced is calculated by subtracting the pool price from the bid price.
    • It allows companies to competitively bid for the all-in price they need to develop a project. From the all-in price we subtract the pool price and the difference is how much is paid in support.

    Additional resources


    Contact us

    For developer and other industry inquiries, please contact

    Please be advised that the AESO may post questions received via and the corresponding responses to the Stakeholder FAQ for the benefit of all stakeholders. The identity of the author posing the question will not be disclosed.