REP Round 1 results
On Dec.13, 2017, the Government of Alberta announced the results of Round 1 of the Renewable Electricity Program (REP).
REP Round 1 successfully delivered nearly 600 MW of wind generation at a weighted average bid price of $37/MWh – setting a new record in Canada for the lowest renewable electricity pricing. Successful companies receive support using an Indexed Renewable Energy Credit in exchange for a project’s renewable attributes. The success of this competition represents a major milestone toward meeting the Government of Alberta’s target of 30 per cent renewable electricity by 2030.
For a summary of REP Round 1 results, download our REP Infographic.
Four projects were selected for REP Round 1. Edmonton-based Capital Power and two large international companies, EDP Renewables Canada Ltd. and Enel Green Power Canada Inc., proposed wind projects in southern Alberta. Each project can connect to the existing transmission system, with no new transmission costs for Albertans as a result of Round 1.
|EDP Renewables Canada Ltd.||Sharp Hills Wind Farm||248.4||Oyen|
|Enel Green Power Canada, Inc.||Riverview Wind Farm||115||Pincher Creek|
|Enel Green Power Canada, Inc.||Phase 2 of Castle Rock Ridge Wind Power Plant||30.6||Pincher Creek|
|Capital Power Corporation||Whitla Wind||201.6||Medicine Hat|
Twelve proponents submitted bid prices for 26 projects in the RFP stage of REP Round 1. The proponent names are listed alphabetically below:
- BHEC - RES Alberta L.P.
- BowArk Energy Ltd.
- C&B Alberta Solar Development ULC
- Capital Power Corporation
- EDF EN Canada Inc.
- EDP Renewables Canada Ltd.
- Enel Green Power Canada Inc.
- Invenergy Wind Global LLC
- NaturEner Energy Canada Inc.
- NextEra Canada Development LP
- Potentia Renewables Inc.
- TransAlta Corporation
REP Round 1 was overseen by a third-party Fairness Advisor at every stage to ensure the competition was administered in a fair and transparent manner, and adhered to all confidentiality requirements, policies and guidelines. To read the Fairness Advisor Report, click here.
REP Round 1 final competition documents
- Request for Expressions of Interest
- Request for Qualifications
- Request for Proposals
- Renewable Electricity Support Agreements (RESA)
REP Round 1 background
- Target 400 MW of renewable electricity capacity
- Must be operational in 2019
- Applicable to new or expanded projects in Alberta
- Must be equal to or greater than 5 MW
- Must meet the Natural Resources Canada definition of renewable energy
- Must utilize the existing transmission and/or distribution system
- An Indexed Renewable Energy Credit will be used
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.
Key details of the RFQ and RFP
The AESO believes it is important for stakeholders to have an early understanding of key features specific to the Request for Qualifications (RFQ) and Request for Proposals (RFP) stages for the first competition.
Request for Qualifications
- Bidders must pay a non-refundable qualification fee to participate
- Bidders must describe their project teams
- Bidders must demonstrate their qualifications in three categories:
- Project eligibility
- Financial strength and capacity
- Technical capability
Financial strength & capacity
- Does the bidder have sufficient net worth relative to the proposed project size?
- Can the bidder confirm that no current or reasonably foreseeable event could have a material adverse impact on the bidder’s current financial standing?
- Can a financial sponsor or guarantor provide confirmation of willingness to support the bidder?
- Can the bidder provide confirmation of the equity contribution and description of how the bidder intends to secure it in order to construct the project?
- Has the bidder been involved in recent projects of similar size and/or complexity?
- Does the bidder have experience in each stage of project development (e.g. siting, stakeholder consultation, land acquisition), construction and operation?
- Has the bidder provided a narrative description of its relevant experience?
Request for Proposals
- Bid security must be provided with submissions
- Bidders must confirm their project teams have not changed
- Bidders must demonstrate no material adverse impact on financial standing has occurred since the RFQ stage
- Bidders must submit a final binding offer (i.e. bid price)
- Winning bidders will be selected based on lowest price
News and updates archive
RFP for REP Round 1 now open
September 15, 2017
The Government of Alberta has announced the opening of the final Request for Proposals (RFP) stage for REP Round 1. Qualified respondents from the RFQ stage have been invited to submit a bid proposal. The RFP, including the final form of the Renewable Electricity Support Agreement, is available on the REP SharePoint site for qualified respondents.
RFQ evaluation complete
September 15, 2017
The AESO’s evaluation of RFQ submissions is complete and respondents have been notified. An independent Fairness Advisor has certified the RFQ process has been conducted in a fair and transparent manner.
RFQ for REP Round 1 now closed
June 29, 2017
The RFQ stage for REP Round 1 closed June 16, 2017. All RFQ submissions are being evaluated and qualified respondents will be notified and invited to submit a bid proposal prior to the RFP stage, expected to open Sept. 15, 2017.
Expressions of Interest for REP Round 1
May 16, 2017
The AESO has published a list of parties who submitted an Expression of Interest Form for REP Round 1.
RFQ for REP Round 1 now open
April 28, 2017
The AESO opened a Request for Qualifications (RFQ) for REP Round 1 on April 28, 2017. The RFQ and the full form of the draft RESA are available on the REP SharePoint site. Click here to find out more.
REOI information session FAQ
April 25, 2017
Attendees of the REOI information session on April 18, 2017 were provided with a Stakeholder FAQ. The AESO has updated the answer to the behind-the-fence eligibility question to provide further clarity to parties interested in REP Round 1.
REOI for REP Round 1 now closed
April 21, 2017
The REOI stage for REP Round 1 has now closed. The AESO thanks those who submitted an expression of interest. The AESO plans to open the RFQ stage on April 28, 2017. Submission of an EOI form is not a prerequisite to participating in the RFQ.
- Request for Expressions of Interest
- Expression of Interest Form
- Key Provisions of the Renewable Electricity Support Agreement (RESA)
REOI information session
April 20, 2017
Approximately 250 questions were submitted during the information session. The AESO is drafting responses to those questions we were unable to address during the session. We will post them along with other frequently asked questions by April 28, 2017.
REOI for REP Round 1 now open
March 31, 2017
The AESO has opened a Request for Expressions of Interest for the first REP competition. Click here to find out more.
Eligible biomass fuels information posted
March 30, 2017
Information about eligible biomass fuels is provided here.
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.
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 are available here, and a full form RESA will be provided when the RFQ stage opens on April 28, 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
As part of its RFQ submission, each party will be required to pay a non-refundable submission fee. This fee will be calculated based on the aggregate nameplate capacity of all projects submitted plus a fee for all projects submitted in addition to the first, as follows:
- $1,000/MW of the aggregate nameplate capacity of all projects submitted by a single party, with this portion of the fee being a minimum of $10,000 and a maximum of $50,000; plus
- For each project submitted in addition to the first, a fee of $2,500.
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 per cent 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 per cent equity commitment.
Click here for information about eligible biomass fuels.