REP news and updates
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Government announces first REP competition to open March 31, 2017
March 24, 2017
The Government of Alberta has announced the opening of the first REP competition. A Request for Expressions of Interest for REP Round 1 will open March 31, 2017.
More details will be available here on March 31.
Stakeholder feedback on RESA key provisions now posted
January 31, 2017
On November Nov. 10, 2016 the AESO posted draft key provisions of the Renewable Electricity Support Agreement (RESA) for stakeholder review and comment. We received a comprehensive set of submissions from over 60 stakeholders, and we thank those who participated for their feedback.
The AESO committed to thoroughly reviewing all submissions and posting all feedback received on a no names basis. Please click here to review the submissions.
Updated key provisions of the RESA will be posted on March 31, and a full form RESA will be provided at the RFQ stage in late April 2017.
Further details on eligibility requirements posted
January 19, 2017
In addition to the general overview of the first competition posted on Nov. 3, 2016, the AESO is providing further details regarding certain eligibility requirements to assist interested bidders in understanding these requirements.
New and expanded projects
“New” and “expanded” projects located in Alberta will be eligible to participate in the first competition.
- A “new” project will be a facility that:
(a) May include construction on a previously used site if:
i. There has not been any generation utilizing renewable fuels on such site since September 1, 2016; and
ii. All generating units and other equipment and facilities are new (other than transmission facilities and site infrastructure such as roads and utility services); and
(b) Has a design life equal to or greater than the term of the Renewable Electricity Support Agreement (RESA).
- An “expanded” project will be, in respect of any existing project, the addition of new generation units that:
(a) Do not replace any existing generating equipment utilizing renewable fuels which are currently operating (or which utilized renewable fuels and have been operating at any time since September 1, 2016); and
(b) Are separately metered; and
(c) Have a design life equal to or greater than the term of the RESA.
During the RFQ, each bidder (i.e. Respondent) must ensure that its participation in the process is without collusion or fraud. A Respondent and its team members will not be permitted to communicate regarding its RFQ submission with any other Respondent (including that Respondent’s team members). However, it will be permissible for a party which is a Non-Control Team Member (as defined below) of one or more Respondents to communicate with each Respondent of which it is a team member, provided that party keeps each Respondent’s information confidential.
- “Non-Control Team Member” will mean, in respect of any Respondent, an entity which:
i. is not a Control Team Member; and
ii. owns or controls an interest (or is otherwise involved or participating) in any project which the Respondent will be responsible to develop, construct, finance and operate if awarded a RESA.
- “Control Team Member” will mean, in respect of any Respondent, an entity which:
i. owns or controls (or is part of the designated equity group that owns or controls) a majority interest in; or
ii. is the Project Team Lead for;
any project which such Respondent will be responsible to develop, construct, finance and operate if awarded a RESA.
- “Project Team Lead” will mean, in respect of any project for which a Respondent is making an RFQ submission, the entity which has lead responsibility for the development of such project on behalf of the Respondent.
For certainty, an entity will be permitted to be:
i. a Non-Control Team Member of more than one Respondent; or
ii. a Control Team Member of one Respondent and a Non-Control Team Member of one or more other Respondents.
REP submission fee
Each party wishing to provide an RFQ submission will be required to pay a non-refundable submission fee, equal to $1,000/MW of the total nameplate capacity of all projects submitted. The fee for the first project will be a minimum of $10,000 and capped at a maximum of $50,000. The fee for each project submitted in addition to the first by the same bidder will be $2,500.
The REP submission fee is non-refundable unless the AESO cancels the competition, in which case the fee will be returned in full to the bidder.
Tangible net worth
In the RFQ submissions, bidders must demonstrate qualifications in the following three categories:
- Project eligibility;
- Financial strength and capacity; and
- Development, construction and operational capability.
Regarding the financial strength and capacity category, the bidder will need to demonstrate that it has secured commitment for 51% of the required equity from one or more equity providers, and that the equity provider(s) has sufficient ‘tangible net worth’ relative to the proposed project size. The tangible net worth threshold will be a minimum of $250,000 per MW of proposed project capacity and, in the case of multiple equity providers, will be applied proportionately based on each equity provider’s contribution relative to the 51% equity commitment.
The AESO intends to post further details with respect to biomass eligibility prior to the launch of the REOI.