Alberta Power Purchase Agreements

BluEarth Renewables, the developer of the Burdett and Yellow Lake Solar Project, also did a great job on this trip. They will begin construction of the solar project in August 2020. BluEarth expects to start generating electricity in the second quarter of 2021. Once completed, the Burdett and Yellow Lake Solar Project will be the eighth largest solar project in Canada. It will produce enough renewable energy to power 6,400 homes. (b) be held by the balancing pool as a buyer for all the objectives of this Legislation, regulation and first-time agreement. An AAE separates two things: (1) Ownership and operation of the facility and (2) the right to offer the production of the facility in the electricity pool (the production market). The historic companies remain owners and operators of the facility, but it is the buyer who decides, under the AAEs, at what price the production should be offered in the pool. As explained by the Minister of Energy (Dr. West) of the legislative branch (and as in the AUC MSA/TAU decision, Nathan Kaiser and Scott Connelly, decision 3110-D01-215 cited in paragraph 545: In August 2019, the provincial regulator approved the largest solar project in the country, the 400 MW solar project developed by Greengate Power Corp in Vulcan County. The facility is expected to enter service in 2021. It will work without subsidies and sell electricity from resellers. In December 2015, Enmax announced that it was “ending” its interest in an electricity purchase agreement (AAE) with the owner of the Battle River 5 coal-fired power plant, which is subject to the PPP (see Enmax ending the unprofitable coal electricity contract).

This month (March 2016), TransCanada Energy and ASTC Power Partnership (a partnership between Trans Canada Energy and AltaGas Pipelines) announced that they too had terminated their obligations as buyers under PPA for Sheerness and Sundance A and B. In announcing its decision, TransCanada stated that this was the case because “unprofitable market conditions will continue as CO2 costs have increased and are expected to continue to increase during the remaining AAE period. It is generally considered that the reference to “CO2 emission costs” is a reference to the emission penalty imposed by the Specified Gas Emitter Regulation (SGER), Alta Reg 139/2007. This regulation, first introduced in 2007, requires regulated emitters (including coal-fired power plant owners) to improve the intensity of emissions at their facilities (or obtain offset or emission performance credits), otherwise these emitters must contribute to the Climate Change and Emissions Management Fund. Originally, the emission intensity target was set at 12% compared to the original underlying facility and the Fund`s contribution of $15 per tonne (payable only for emissions above the installation emission intensity target). While the previous government was hesitant and hesitant to change the intensity target and change the amount of the Fund`s contributions (in fact, the previous government twice extended the sunset provision in the regulation), the Notley government resorted to hives, and announced in June 2015 that regulated issuers would be required to meet an emission intensity target of 15% in 2016 and 20% of 10% in 2017, while the compliance price of excess emissions will increase from $20 per tonne in 2016 to $30 per tonne in 2017.

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