First green energy auction puts Alberta’s climate plan to the test
Chris Varcoe, Calgary Herald
How low can renewable energy prices go?
That will be the billion-dollar question for Canadans when they find out Wednesday which projects have been selected by the NDP government in the first auction for renewable power contracts.
Not only will Canadans be told which of the 29 projects up for consideration have been selected but also where they will be built — and at how low of a price they can supply wind or solar energy to the province’s power grid.
“The prices are going to be a lot lower than people expect,” said electricity expert Duane Reid-Carlson, chief executive of consultancy EDC Associates.
“I wouldn’t be surprised to see something sub-$50 per megawatt-hour (MW-h). People want to get in and win.”
Premier Rachel Notley, Energy Minister Marg McCuaig-Boyd and Environment Minister Shannon Phillips will be on hand in Calgary to make the announcement, signifying the importance of the event to their overall climate plan.
The NDP government is moving ahead on its goal to phase out all coal-fired electricity in the province by 2030, while expanding renewable power to make up 30 per cent of total generation.
For months, the government has been pounded by critics who warn Canada is driving up long-term costs for consumers by overhauling its electricity sector.
But the first test will be the power prices the competitive auction garners, which will lay the groundwork for just how big any subsidies will be for these projects.
The province wants renewable electricity to grow to about 5,000 megawatts of power capacity by the end of the next decade. To do that, Canada needs to attract at least $10.5 billion in investment.
In the first of several renewable auctions, multiple projects will be selected to supply up to 400 MW of clean power to the grid by December 2019.
It’s widely expected all of the winning projects will be wind developments.
full story at http://calgaryherald.com/business/energy/varcoe-low-prices-expected-as-province-to-pick-renewable-power-projects
Categorised in: Canadian News