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Canadian government announces nineteen successful projects in response to a call for proposals under the Renewable and Clean Energy portion of the Clean Energy Fund

The Honourable Lisa Raitt, Canada's Minister of Natural Resources, today announced support for nineteen (19) projects selected in response to a call for proposals under the Renewable and Clean Energy portion of the Clean Energy Fund. Up to $146 million will be invested over five (5) years to support the demonstration of renewable and clean energy across the country, including integrated community energy solutions, smart grid technology, and renewable applications with solar, wind, tidal and geothermal energy.

Under the Clean Energy Fund, part of the Government of Canada's Economic Action Plan (Budget 2009), the government is to invest almost $1 billion over five (5) years in research, development and demonstration projects to advance Canadian leadership in clean energy technologies. This includes large-scale carbon capture and storage demonstration projects, three (3) of which have already been announced totaling $466 million from the fund, as well as smaller-scale demonstration projects of renewable and alternative energy technologies such as those announced today. Total investments under the Clean Energy Fund for large and small demonstration projects are to benefit Canada's economy by leveraging nearly $3.5 billion in further investments by industry and other levels of government.

The Government is now inviting the project proponents to begin negotiations toward formal contribution agreements to set the conditions under which funding will be delivered. The funding amounts are expected to range from $2.5 million to $20 million for each project. However, until a written contribution agreement is signed by both parties, no commitment or obligation exists on the part of the Government of Canada to make a financial contribution to these projects.

Successful Project Descriptions

A) Projects expected to receive $2.5-$5 million

1. Biomass-based Urban Central Heating Demonstration
Lead proponent: SSQ, Société immobilière Inc.
Strategic Area: Buildings/Community Energy Systems
Location: Québec, Québec
Purpose: La Cité Verte is an innovative real estate project, which combines various initiatives related to sustainable development such as renewable energy utilization, energy efficient design, the management of water consumption, energy and waste management. The funding will support the installation of a biomass and wood-based district heating system. This project combines a variety of technologies and partners.

2. Utility-scale Electricity Storage Demonstration using New and Re-purposed Lithium Ion Automotive Batteries
Lead proponent: CEATI International Inc.
Strategic Area: Electricity Storage
Location: Toronto and Cornwall, Ontario, and Manitoba
Purpose: This project will address electricity storage for renewable and high-density urban applications. The project will demonstrate utility-scale electricity storage systems using new and re-purposed automotive batteries. This concept will reduce cost for electric vehicle batteries providing a future market to meet urban electricity demand using automotive batteries.

3. Energy Management Business Intelligence Platform Development and Demonstration
Lead proponent: Power Measurement Ltd.
Strategic Area: Smart Grid
Location: Commercial buildings in Calgary, Alberta, Ontario and BCIT in Burnaby, British Columbia
Purpose: This project will develop and demonstrate smart grid technology, voluntary load curtailment and peak shaving in a commercial building setting. Most projects of this type to date have focused on residences. This technology will also enable tenants to voluntarily reduce their demand based on real-time price signals.

4. Wind and Storage Demonstration in a First Nations Community
Lead proponent: Cowessess First Nation
Strategic Area: Wind/Storage
Location: Cowessess, Saskatchewan
Purpose: This project aims to demonstrate a combined wind and storage energy system in a First Nation community. The successful demonstration would prove this system as a model for other First Nation's communities across Canada.

5. Bioenergy Optimization Program Demonstration
Lead proponent: Manitoba Hydro
Strategic Area: Bioenergy
Location: Five locations in Manitoba
Purpose: This project is comprised of five different bioenergy systems at five different project sites. The project demonstrates collaboration between utility companies and customers. It is anticipated that the project will help to remove the perceived barrier of technical and operational risk and will promote the wide-scale adoption of bioenergy systems in Canada.

6. Offshore Wave Energy Demonstration
Lead proponent: SyncWave Systems Inc.
Strategic Area: Marine/Hydro
Location: Offshore Central Vancouver Island near Tofino, British Columbia
Purpose: This project will demonstrate the performance, operations and life cycle of a pre-commercial 100-kW wave energy device in ocean conditions typical of British Columbia's open coast. Canada has potentially significant wave energy resources, and it is important for Canada to participate in demonstrations to further the technology, understanding of ocean conditions and the regulatory environment.

7. Demonstration of Waste-heat Recovery at Compressor Stations
Lead proponent: Great Northern Power Corp.
Strategic Area: Hybrid Systems/Northern
Location: Compressor Stations in Alberta and British Columbia
Purpose: This project plans to demonstrate waste-heat recovery systems on a variety of stationary, reciprocating engines greater than 1,000 hp. A successful demonstration has the opportunity to lead to commercialization and wide-scale adoption of this technology at compressor stations and other industrial applications across Canada.

8. Residential Implementation of Solar-thermal Heating Systems
Lead proponent: Enbridge Gas Distribution Inc.
Strategic Area: Buildings/Solar
Location: Greater Toronto Area, Ontario
Purpose: The project will use different types of solar collectors and storage technologies to verify and compare their costs, performance and technical qualities. The project has the ability to validate the technology and provide integrated systems at a lower cost to consumers, thereby allowing greater market penetration.

9. Food and Yard Waste Anaerobic Digestion to Electricity Demonstration
Lead proponent: Harvest Power Canada Ltd.
Strategic Area: Bioenergy
Location: Fraser Richmond Soil and Fibre, British Columbia
Purpose: This project would be Canada's first high-efficiency system for producing up to 1 MW of renewable energy from food and yard waste. If successful, this technology has the potential to be rapidly deployed across Canada as a mechanism to divert food wastes from landfills and produce renewable energy.

B) Projects expected to receive $5-$10 million

10. Demonstration of Heat and Power from Biomass Gasification
Lead proponent: Nexterra Systems Corp.
Strategic Area: Bioenergy
Location: UBC Point Grey Campus, Vancouver, British Columbia
Purpose: This project will showcase biomass gasification integrated with an internal combustion engine generator in a novel, small-scale combined heat and power demonstration suited for on-site applications at public institutions, industrial facilities, and northern and remote Canadian communities. The project has the potential to overcome the difficulty of gas clean up and opens up the possibility of significant replication in Canada and overseas.

11. Energy Storage and Demand Response for Near-capacity Substation
Lead proponent: BC Hydro
Strategic Area: Smart Grid/Electricity Storage
Location: Golden and Field, British Columbia
Purpose: This project demonstrates the integration of energy storage as a mechanism for reducing electricity demand at near-peak capacity substations. This type of solution has the ability to be used in other remote communities where the grid reliability is low and the cost of the transmission line upgrade is uneconomical.

12. Interactive Smart Zone Demonstration in Québec
Lead proponent: Hydro-Québec - Institut de recherche
Strategic Area: Smart Grid
Location: Boucherville, Québec
Purpose: This project will ensure the installation of an interactive network area in a neighbourhood of Boucherville. This will demonstrate different technologies and concepts related to modernization of electrical networks, in particular the deployment of infrastructure for charging electric and hybrid rechargeable vehicles.

13. Biomass and Coal Co-firing Demonstration in Coal Plants
Lead proponent: Nova Scotia Power
Strategic Area: Bioenergy
Location: Coal Plants in Nova Scotia
Purpose: This demonstration project aims to determine optimum fuel blends for the potential co-firing of wood-based biomass with coal as a mechanism to partially replace fossil fuels with sustainable energy sources in coal plants. If successful, there is potential for wide-scale implementation across Canada and the United States.

C) Projects expected to receive $10-$20 million

14. Tidal Energy Project in the Bay of Fundy
Lead proponent: Fundy Ocean Research Centre for Energy (FORCE)
Strategic Area: Marine/Hydro
Location: Minas Passage, Bay of Fundy, Nova Scotia
Purpose: The project plans to validate the performance and resilience of tidal current turbines in the Minas Passage of the Bay of Fundy. This will be the first Canadian deployment of commercial-scale tidal turbines. The project has the potential to advance tidal energy in Canada, provide economic impacts in the Atlantic region and place Canada as a world leader in marine renewable energy.

15. Northern Application of a Geothermal District Heating System
Lead proponent: City of Yellowknife
Strategic Area: Northern/Community Energy System
Location: Yellowknife, Northwest Territories
Purpose: The City of Yellowknife is in advanced stages of project engineering and plans to install a district heating system by extracting heat from the abandoned Con Mine. This project has the potential to provide a cost effective and a more environmentally friendly alternative to fossil fuel based heat. The information that will come out of this project on the effect of extracting ground-source heat from an existing aquifer and its associated long-term heat capacity will help determine if this technology could be replicated in other northern communities.

16. Electricity Load Control Demonstration
Lead proponent: New Brunswick Power Corporation
Strategic Area: Smart Grid
Location: Four maritime communities in New Brunswick, Nova Scotia and Prince Edward Island
Purpose: Traditionally, to accommodate the intermittent nature of wind power, other generation sources are required to follow the net effect of variation in load and wind power production. This project focuses on the integration between smart grid technologies, customer loads and intermittent renewables in a region with potentially significant renewable electricity capacity. It will allow utilities to better understand how customers will react to smart grid and which loads can be controlled by real-time demand balancing in up to 750 buildings, thereby assisting these utilities to capitalize on renewable resources in the region.

17. A 9-MW Wind Technology Research and Development Park
Lead proponent: Wind Energy Institute of Canada
Strategic Area: Wind/Storage
Location: Prince Edward Island
Purpose: The 9-MW wind park proposed will be the first wind/storage combination in Prince Edward Island. The project's research base has a strong focus on information dissemination and would be a good base for supporting additional wind research.

18. Demonstration of Fish-friendly and VLH Turbines in Existing Low-head Water-control Dams
Lead proponent: Eco Joule Inc.
Strategic Area: Marine/Hydro
Location: Mississippi River System, Ontario
Purpose: This project will demonstrate three in-stream hydro technologies including fish-friendly, low-head hydro turbines along an existing water-controlled river system in Ontario. It has the opportunity to prove the technology concept, demonstrate cooperation with a conservation organization, and reduce the barriers to commercialization.

19. Community-based Geothermal Demonstration in a Remote First Nations Community
Lead proponent: Borealis GeoPower Inc./Acho Dene Koe First Nation
Strategic Area: Hybrid Systems/Northern
Location: Fort Liard, Northwest Territories
Purpose: This project will demonstrate how a northern community can use a geothermal resource to generate electricity and heat, thereby reducing the entire community's fossil fuel demand and energy costs. A successful demonstration will provide a model for other northern and First Nations communities with available geothermal resources.

First Power Solar Project: Clean Energy for First Nations Communities

Today at the 2009 Solar Conference, the Government of Canada announced an investment of up to $1 million in the First Power solar project through its ecoENERGY for Renewable Heat program. In addition to the federal government's commitment, First Power is also being supported by Solar BC and several financial institutions, including the All Nations Trust Company.

The First Power project will support the installation of domestic solar water heating systems in up to 900 homes, with a focus on remote First Nations communities.

First Power, which will leverage millions of dollars in additional funding to complete its projects, is a partnership between Taylor Munro Energy Systems and the Centre for Integral Economics. This unique hybrid business is designed to support First Nations communities to gain access to and ownership of renewable energy and clean technologies. The project intends to replace diesel power generation by energy systems that deliver all the heat, light and power a community requires through renewables.

Making the announcement on behalf of Minister Lisa Raitt was Senator Linda Frum, who declared: "This investment will generate new economic activity in First Nations communities, while reducing energy costs and greenhouse gas emissions [...] Investing in projects like this will stimulate the growth of a domestic clean energy industry, create high-quality jobs for Canadians and help protect our environment."

Donna Morton, President of the Centre for Integral Economics added: "We believe that First Nations can take ownership of renewable energy and clean technology systems through orally taught training [...] Autonomous energy can give First Nations in Canada both a leading role in building green collar jobs and economic development that respects ancestors, elders and the future."

CCEMC Announces Project Funding for 30 Clean and Green Projects

The Climate Change and Emissions Management (CCEMC) Corporation ("CCEMC") issued a press release this week that of the 223 projects submitted in its EOI process, thirty clean and green projects were being asked to submit Full Project Proposals under the CCEMC's 2009 Call for Proposals: Initial Full Project Proposal Stage.

The CCEMC has up to $120 million available for clean, green projects which address energy conservation and efficiency, greening energy production and carbon capture and sequestration. The CCEMC's Chair, Eric Newell, commented that "clean technologies will reduce emissions and enhance the economic and environmental value of energy resources - by supporting ideas and initiatives at the leading edge of the green economy, we will reduce emissions, and in the process, support green jobs".

The CCEMC's announcement demonstrates its commitment to technology, conservation and greening the energy mix. The projects and investments the CCEMC will be making, which are demonstrated in the projects being selected to move to the Full Project Proposal Stage, undoubtedly have collateral benefits associated with the establishment of green jobs and the development of the green economy.

Stay tuned - we'll keep you up to date on the CCEMC's process and the projects being selected to move forward.

Waste-to-biofuels plant to use residual heat and synthetic gas from its process as heating and cooling energy for residents and institutions on outskirts of Edmonton

Enerkem, a waste-to-biofuels and green chemicals technology company, today jointly announced a community energy initiative that will heat a Strathcona County neighbourhood, using the residual heat and synthetic gas from its process employed at its Edmonton waste-to-biofuels plant. On hand for the joint announcement were Alberta Environment Minister Rob Renner, City of Edmonton Mayor Stephen Mandel, and Strathcona County Mayor Cathy Olesen.
Enerkem's community energy project received $7.45 million grant funding from the Government of Alberta from the Clean Air and Climate Change-Technology and Innovation Program, under Alberta's share of the Canada ecoTrust. The project was selected because of its great potential in reducing greenhouse gas emissions for the Edmonton Region, by providing a clean alternative source of energy.
The Enerkem GreenField Alberta Biofuels plant will provide the residual heat and synthetic gas from its process as heating and cooling energy for residents and institutions in the Emerald Hills area. Strathcona County will use the innovative alternative to natural gas in a heating loop in Sherwood Park. Once operational in 2012, the Enerkem renewable energy project will reduce greenhouse gas (GHG) emissions by about 7,000 tonnes per year.

The Harmonization of Climate Change

Since you've been waiting with bated breath to find out what we had to say next about the federal and provincial climate change policies, we didn't want to keep you in suspense. We blogged on Monday that the provinces are throwing together climate change legislation faster than you can say "greenhouse gases".

In related news, yesterday the Globe and Mail reported that the Alberta Conservatives are taking their federal counterparts to task over energy and environment, treatment of the oil sands and other federal government policies. The controversy arises after speaking notes prepared for Conservative MLAs to raise with federal MPs in their home ridings found their way into media hands.

A significant bone of contention for Alberta's governing party appears to be with respect to the federal government's climate change policies as they relate to coal-fired electricity. In a meeting with media on April 29, Minister Prentice was asked about what types of regulations Canada would be rolling out with respect to climate change, and specifically what its policy around thermal-coal would be. The Minister replied that any new coal-fired plants will have to be neutral in terms of emissions, (which means they must have the ability to inject the carbon dioxide at the source underground). He also indicated that once coal-fired electricity plants that have come to the end of their useful lives, and have been fully depreciated, they will be decommissioned and replaced with more environmentally friendly options.

Unfortunately, the announcement appears to have been the first time the information was relayed to Alberta. Why is this so significant for Alberta in particular? Alberta relies on coal for electricity. Virtually all of the country's 27 coal plants are here. We do not have hydro in Alberta and we rely only minimally on renewables, so thermal coal is rather important for keeping the lights on. A policy such as the one outlined by the Minister means that Alberta may "shoulder the biggest burden in complying with these regulations - and depending on how they are formulated, they could have a significant impact on the health of the provincial economy". Premier Stelmach may agree. He was quoted in the Globe article as saying "You cannot ask Albertans to carry the burden of equalization, and then also penalize them for producing the wealth that allows us to make such a massive contribution to the programs that Canadians enjoy".

While the Globe story points to the issue as being one of a frayed relationship between Alberta and Ottawa, really the problem is one of harmony of regulation, not relationship.

As Canadians, we are seeking solutions to climate change at the provincial level - this is good. But it's also challenging. Each province's emissions profile is different from the next and given its industry, Alberta's situation is particularly hard to address. Intraprovincial carbon trading, for example, is a desirable mechanism, but regulations in BC are so vastly different from those in Alberta or Ontario that they will be difficult to align. You could be trading apples for oranges. The longer the provinces have to grow and develop their own programs, the harder it's going to be to allow the various systems to operate in concert.

What will drive harmonization? Probably not climate change, but rather industry (national corporations are the same whether they are operating in PEI or Saskatchewan after all) and intra-provincial trade. Degrees of harmony have to be created.

We're just beginning to explore this topic here on the blog. Stay tuned to see our thoughts on how harmony will be achieved and how the constitutional issue will be addressed.

Edmonton to open North America's first waste-to-biofuel plant

Posted by Sarah Robicheau, Summer Student

By the end of 2009 the City of Edmonton will be home to a one-of-a-kind in North America commercial facility which uses microorganisms to convert waste into valuable synthetic gases including ethanol, methanol and diesel, as well biochemicals such as acetic acid or acetate.

This pioneering project is the result of a joint effort between Enerkem, a Canadian biofuel and biochemical producer, GreenField Ethanol of Toronto and the City of Edmonton, where the facility is to be located. GreenField, Canada's leading ethanol producer, has contributed $70 million to the venture, while Edmonton has contributed $20 million. Enerkem and the City entered into a 25 year agreement in 2008 which will see the city supplying 100, 000 tonnes of municipal waste, which Enerkem expects to convert into 36 million litres of ethanol a year. Over the lifespan of the agreement, the facility is expected to reduce Alberta's carbon dioxide footprint by more than six million tons.

"This unprecedented project is set to change the dynamics of the waste and fuel industries by making waste that would otherwise be landfilled a resource for transportation fuels," said Vincent Chornet, chief executive of Enerkem. Adopting such an entrepreneurial attitude, not only is the technology involved innovative, but so is the business scheme; it represents the first such partnership "between a large urban centre and a biofuel producer to turn municipal waste into ethanol", according to Enerkem.

While this project is being funded by the City of Edmonton and other investors, Enerkem has received funding for other biofuel facilities through Sustainable Development Technology Canada. SDTC administers a $500 million dollar "NextGen Biofuel Fund", established by the federal government to support projects related to the development of next generation biofuels. Through the fund, the government "will support up to 40%, of eligible project costs for the establishment of first-of-kind large demonstration-scale facilities for the production of next-generation renewable fuels." Those interested in applying for funding may contact Davis LLP for assistance or visit the SDTC's site directly.

Alberta Budgets for Climate Change

The Alberta Government announced its 2009 Budget yesterday. Reading through the many pages of the document, it is clear that climate change is a priority for both the Department of Energy and for Alberta Environment. It is no surprise that climate change initiatives are addressed in more than one Ministry - climate change isn't the responsibility of just one area of government - it touches matters for which many are accountable.

Energy

Of the eleven goals outlined in the Energy Business Plan, six of them are related directly to climate change initiatives in the areas of renewable and alternative sources of energy, conservation of energy and carbon capture and storage. In some cases, strategies for meeting these goals are a combination of the above initiatives.

Renewable and Alternative Sources of Energy

A strategy for meeting Goal 4, to encourage value added development in Alberta, includes facilitating the development and utilization of alternative energy resources such as biofuels and waste to energy opportunities.

Goal 5, to make Albertan's aware of and understand existing and emerging trends relating to energy development and use in Alberta relates to renewable and alternative sources of energy, contains strategies to proactively identify, communicate and address emerging issues that face energy and mineral development in Alberta and to enhance provincial, national and international understanding of Alberta's energy resources and work being done to develop these in an environmentally sustainable manner.

Goal 8 is to ensure effective innovation policies and programs to achieve technology and processing improvements in the development of energy and mineral resources. Realizing Alberta's energy vision will include the development of new technologies or the enhanced deployment of already proven technologies, including renewable energy sources. One of the strategies under this goal is to work with other ministries (Environment?), research organizations and industry to develop an integrated, coordinated approach to research that supports environmentally sustainable energy development.

Carbon Capture and Storage

The Department of Energy identifies Carbon Capture and Storage as a significant opportunity for Alberta in two ways:

Value Added - Alberta has a unique opportunity to develop leading industrial and petrochemical upgrading and refining clusters based on transforming raw feedstocks into synthetic gas and gas liquids for petrochemical development. At the same time we can capture and store carbon emissions and produce electricity for the provincial grid.

CCS - CCS in its ultimate role, is an enabler of clean gasification processes and is a key technology component to realizing the commercial viability of clean fossil fuels. The Western Canada Sedimentary Basin is also one of the world's most attractive sites for storing carbon emissions. Ultimately, Alberta's expertise in the science of solutions will be valued and an exportable resource unto itself.

A number of the goals outlined in the Energy Business Plan specifically relate to CCS.

Goal 3 is to ensure energy and mineral resource development occurs in a responsible, environmentally sustainable manner and achieves the Government of Alberta's outcomes. To do so, the Department of Energy will work with other ministries and stakeholders to implement the provincial action plan on climate change and the recommendations from the Carbon Capture and Storage Development Council, in particular the implementation of carbon capture and storage research and demonstration projects.

Goal 7, that Energy infrastructure is built and sustained to support the Government of Alberta's objectives, includes the need to build infrastructure to support CCS.

Goal 8, ensuring effective innovation policies and programs to achieve technology and processing improvements in the development of energy and mineral resources, specifically mentions the need to develop technologies to realize large scale capture and use of carbon.

Conserving Energy

Goal 6 in Energy's Business Plan is to ensure that industry, citizens, and communities conserve and use energy wisely. Do to so, Energy intends to promote smart metering, smart grids and better consumption measurement; facilitate the reduction of energy intensity through gains in energy effi ciency and demonstrated government leadership; and support the development of an energy effi ciency policy framework and provincial legislation.

Expenditures

The Department of Energy intends to spend wisely in the areas of renewables, conservation and carbon capture and storage. $100 million for CCS alone has been budgeted for 2009/2010. Next year's forcast is triple that number.

Environment

One of the opening statements in Alberta Environment's Business Plan confirms its commitment to addressing climate change:

Leadership is provided to transition Alberta to an outcomes focused environmental cumulative effects management system, implement the provincial Climate Change Strategy, implement the renewed Water for Life strategy, develop all Alberta's energy resources, including the oil sands, in an environmentally sustainable way, and to provide Albertans, stakeholders and industry with information on government's role in ensuring environmental excellence and sustainable development while providing tools to reduce their environmental footprint.

Climate change is specifically identified as a significant opportunity and challenge for Alberta. The Alberta Environment Business Plan summarizes this opportunity and challenge as follows:

Climate change has been described as "the most complex collective action problem in human history". In the United States, President Obama sees climate change as putting "the planet in peril". Global action on this issue continues to build not only from an environmental perspective but in the areas of economics and politics. Albertans and the Ministry are in a unique position of providing global leadership on this issue. The Alberta government's recent announcement of resources towards climate change initiatives including carbon capture and storage is the single largest global expenditure to date. The challenges of managing our global energy resources in an environmentally responsible and economically sound and efficient manner, is creating opportunities for this province to reduce carbon while supporting global energy security.

The budget shows that there is $132 million in the Climate Change and Emissions Management Fund and is projecting another $95 million will be collected next year. March 31 was the date for compliance under the Specified Gas Emitters Regulation and final figures indicating contributions to the Fund should be available from Alberta Environment shortly.

Goal 1, that the cumulative effects of development on land, air, water and climate be managed to achieve Government of Alberta desired environmental outcomes, is the main goal in Alberta Environment's Business Plan which focuses on climate change.

This goal will be addressed using a variety of strategies, including:

• assist in ensuring Alberta's energy resources are developed in an environmentally sustainable way by supporting the Ministry of Energy in the implementation of carbon capture and storage research and demonstration projects
• Continue to implement the Climate Change Strategy through policy, program and infrastructure initiatives and assure appropriate governance of the Climate Change and Emissions Management Fund. This strategy will include programs that promote wise energy use across the province, emissions management, vulnerability assessment and climate change adaptation strategies to reduce Alberta's exposure to climate change risks, development of legislation to drive energy effi ciency and conservation, and support for energy innovation and carbon management initiatives designed to lower greenhouse gas emissions over the long term.
• Complete work with the Clean Air Strategic Alliance (CASA) to update Alberta's Clean Air Strategy and begin implementation of the strategy by applying the revised management framework and renewing the major elements of the provincial air system.

Lessons Learned

This Budget confirms a number of things we have been blogging about:

1. Alberta is a global leader in climate change initatives such as CCS - our government's $2 billion commitment to CCS is the world's largest

2. Cooperation is required - to address climate change domestically, government departments will work together. Both Environment and Energy Business Plans indicate that they will be working with other ministries to address climate change initiatives

3. Addressing climate change is a challenge, but it is also an opportunity for governments

Given the commitments outlined in this budget, Alberta will have much to be proud of at the Copenhagen Climate Conference in December.

Alberta Utilities Commission to consider need for $3.5 billion of transmission upgrades to support renewables

The Alberta Electric System Operator ("AESO") has filed an application with the Alberta Utilities Commission ("AUC") identifying a need for substantial transmission system reinforcement in southern Alberta. According to the notice of hearing issued by the AUC, the AESO submits that as much as $3.5 billion in system reinforcement ($1.8 billion in 2008 dollars) may be required to accommodate forecast wind-power generation growth and system constraints, in three stages, by 2017.

Through a public hearing, the AUC will determine whether the reinforcement is needed, and is in the public interest bearing in mind social, environmental and economic considerations. If the AESO's needs application is approved, transmission companies will be invited to submit facilities applications to the AUC for the construction of the necessary reinforcements.

This application follows on the heals of the AUC's approval of transmission system upgrades to service existing and future wind farms southwest of Calgary (see our posting here). The Alberta electricity sector therefore appears to be ramping up renewable generation capacity.

The AUC has established an April 7, 2009 deadline for initial comment from interested parties and scheduled a public hearing to begin June 22, 2009.

Alberta Utilities Commission approves 1,000 MW wind farm enabling transmission line

On March 10, 2009, the Alberta Utilities Commission ("AUC") approved a facilities application by AltaLink Management Ltd. to build an approximately 100-km, 240-kilovolt (kV) transmission line between Pincher Creek and Lethbridge, at an estimated cost of $133 million. The new line is intended primarily to carry power from new wind power projects southwest of Calgary. In a press release announcing the decision, Scott Thon, AltaLink President and Chief Executive Officer, said "Albertans are looking for cleaner electricity and this transmission line will help deliver wind-generated power to homes and businesses across Alberta."

Investment in enabling lines such as this one is seen to be critical to unlocking renewable generation potential in Alberta and in other provinces. However, some intervenors in the AUC proceeding question whether the 1,000 MW capacity of the new line will be sufficient to carry the power that is expected to be generated in and around Pincher Creek. For example, Heritage Wind Farm Development Inc. submitted that the line should be sized to carry 2,000 MW. The AUC found insufficient evidence of the need for a higher capacity line and instead relied to the recommendation of the Alberta Electric System Operator ("AESO"). The Alberta Energy and Utilities Board (the AUC's predecessor) had previously approved an AESO needs application based on a 1,000 MW capacity.

In its press release, the AUC highlighted its finding that "AltaLink's proposal was in the public interest, bearing in mind social, environmental and economic considerations, and met the need identified by the Alberta Electric System Operator" and its requirement for "AltaLink to follow a route, utilize certain types of towers, and to investigate consolidation of lines along a portion of the route to minimize the line's impact on landowners while respecting landowners' wishes."