On April 28, 2017 the Massachusetts Electric Distribution Companies (EDCs) jointly submitted a request for approval of the 83C Request for Proposals (RFP) for long-term contracts for 400 to 800 MW of offshore wind energy generation to the Massachusetts Department of Public Utilities (DPU). This draft RFP contains a schedule that calls for the final RFP to be released on June 30, 2017.
It is expected that the three existing Bureau of Ocean Energy Management (BOEM) Massachusetts lease holders, Deepwater Wind, Bay State Wind LLC (DONG Energy and Eversource), and Vineyard Wind (Copenhagen Infrastructure Partners and Avangrid Renewables) will submit bids, with one awarded a long-term contract. Given the additional capacity to be procured under the Massachusetts legislation of 800 to 1,200 MW and nascence of the U.S. offshore wind market, there is a significant opportunity for offshore wind development in the Rhode Island-Massachusetts and Massachusetts Wind Energy Areas (WEAs).
This client note discusses the upcoming MA lease auction, potential WEAs and past BOEM auctions.
Power Advisory would welcome the opportunity to assist clients in assessing offshore wind opportunities in RI-MA and other Atlantic markets, including the implications of such development on transmission and on-shore resources.
Read “Massachusetts Offshore Wind Energy Area Lease Opportunities” here.
Power Advisory client Environmental Defence published its backgrounder on Ontario’s electricity prices on February 2, 2017. The report provides evidence that renewable energy – wind, solar and bioenergy – accounts for a relatively small part of provincial electricity bills.
Power Advisory LLC has been engaged by Emera as independent administrator for the Atlantic Link project’s energy solicitation, which was issued yesterday (January 11, 2017). The intent of this call is to select energy resources to be bundled with transmission in response to the Commonwealth of Massachusetts’ anticipated 2017 clean energy RFP. As independent administrator, we will provide assurance to proponents and the Federal Energy Regulatory Commission (FERC), as to the fairness and transparency of activities related to the Atlantic Link energy solicitation.
To access complete solicitation information parties can register on the project’s website. A notice of intention to participate is due by January 20, 2017; after which Power Advisory and Emera will jointly host a participant conference in Nova Scotia and via WebEx. Qualified participants will have until April 12, 2017 to submit proposals. The tentative solicitation schedule can be found below.
|Atlantic Link Energy Solicitation Issued
||January 11, 2017
|Notice of Intention to Participate due
||January 20, 2017
|Mutual Confidentiality Agreement Due
||January 20, 2017
|Participant conference (Meeting in Halifax, NS + WebEx)
||January 25, 2017
|Deadline for submitting written questions
||February 8, 2017
|Responses to questions posted to web site
||February 20, 2017
|Individual meetings with proponents
||Week of February 20, 2017
|Deadline for Proposals, by 3:00 pm (EST)
||April 12, 2017
|Proposal Evaluation Period (estimated)
||May 10, 2017
|Notification to Proponents (estimated)
||May 10, 2017
||June 9, 2017
|Projects in-service by
Per the solicitation notice proposals will be evaluated and ranked on : offered price for sale of energy; evaluated cost of energy to the Atlantic Link terminus in New Brunswick, cost to firm the energy offered, maximization of the utilization of the transmission capability of the Atlantic Link, firmness of energy, energy source and resource mix, the proponent’s capacity to deliver the energy offer, financial capability and relevant experience, the proponent’s plans for community engagement and environmental approval plan, and the likelihood of successful execution of an Indigenous People’s declaration and plan.
Power Advisory LLC Q4 Ontario Market Report now available.
Over the past few months, there has been much concern (and justifiably so) over rising electricity costs to Ontario’s customers. In part due to this concern, the Ontario Government suspended the Large Renewable Procurement and just announced cancellation of the last round of procurements under the Feed-in Tariff Program. Clearly, there is now heightened awareness to cut costs within Ontario’s electricity sector.
We believe these cost issues are pushing the Ontario Government to find avenues towards potential resolutions, and one of these avenues is the Independent Electricity System Operator’s (IESO’s) Market Renewal Initiative. This is evident based on the Ministry of Energy’s remarks at the Association of Power Producers of Ontario’s annual banquet on November 15, 2016 and then at the November 28, 2016 Empire Club of Canada luncheon.
While Ontario’s wholesale electricity market should evolve through the Market Renewal Initiative, many Ontario-specific conditions and factors must be taken into account. First, Ontario’s Climate Change Action Plan will serve as a foundation within the forthcoming Ontario Government’s revised Long- Term Energy Plan which will set electricity policy. Therefore, evolution of Ontario’s wholesale electricity market must result in outcomes to meet policy objectives. Second, Ontario’s supply mix is heavily ‘baseloaded’ with a very high concentration of non-emitting resources with high fixed costs and low marginal costs. We believe this supply mix will pose unique challenges to evolve Ontario’s wholesale market design, and therefore somewhat limiting application of some components of the U.S. wholesale market designs. Because of these challenges, any wrong turns in the evolution of Ontario’s wholesale market could actually result in higher costs to Ontario’s electricity ratepayers – so let’s take the time to get it right!
On November 23, the Government of Alberta announced its intention to create a capacity market within Alberta’s wholesale electricity market, and released a detailed Alberta Electricity System Operator recommendation paper titled Alberta’s Wholesale Electricity Market Transition Recommendation that provides background and support for the changes being made.
The Electricity Market Transition Report can be found here.
Power Advisory’s summary and commentary on the Government of Alberta announcements is available below.
The following day, the Government announced it had concluded agreements with the coal-fired generation facility owners to cease operation by 2030. These developments are part of fundamentally defining a different path going forward for Alberta’s electricity sector than the one it has been following for almost the past 20 years.
The Coal-Fired Generation Agreement Announcement can be found here.
Power Advisory’s summary and commentary on the Capacity Market Recommendation report is available below.
Transmission developers are moving quickly to prepare to participate in the forthcoming Massachusetts Clean Generation RFP including Anbaric/National Grid (Vermont Green Line) and Emera (Atlantic Link), as the recently released working schedule indicates a proposal submission deadline of June 2, 2017.
For an update on these transmission projects and the full Mass. Clean Energy Generation RFP schedule view the client note here.