Atlantic Link Begins Open Access Solicitation Process, Power Advisory to Serve as Independent Administrator

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
PPAs executed June 9, 2017
Projects in-service by Q4, 2022

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.


Q4 Market Report: Pendulum Swinging to Markets – Will Ontario Get it Right?

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!


Commentary on Alberta’s November Announcements of a Capacity Market and Coal Phaseout Now Available

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.

download energy report

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.

download energy report


Mass Clean Generation RFP Gathers Steam

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.


Power Advisory Summary of TriState RFP Winners

The various electric distribution companies and state agencies in Massachusetts, Connecticut and Rhode Island announced the results of the Clean Energy RFP Tuesday, indicating that contracts were being negotiated with six developers for about 460 MW.  The results are surprising as Power Advisory’s summary shows.

Please click here for Power Advisory’s summary of the Clean Energy RFP


Update on Pan-Canadian and Provincial Carbon Pricing

On October 3, the Government of Canada proposed a pan-Canadian pricing benchmark for carbon pollution. The announcement came as Environment Minster Catherine McKenna met with provincial counterparts to discuss coordination of the Pan-Canadian Framework on Clean Growth and Climate Change, and the Paris climate agreement was officially ratified.

Power Advisory has reviewed the announcement and provided our summary and commentary.

Power Advisory Carbon Pricing Commentary.


Power Advisory presents a case study on Ontario retail price impacts

On October 4th Travis Lusney, Director at Power Advisory, presented a case study on Ontario retail price impacts to the Canadian Energy Research Institute (CERI) at the CERI 2016 Electricity Conference in Calgary.

This presentation provided a case study on Ontario’s Regulated Price Plan (RPP) and the impact on residential and small business consumers in the provinces.  The case study briefly reviewed the history of the RPP  and reasoning for the recent price escalations for consumers in the program.  A discussion on the benefits and drawbacks of the RPP approach was provided along with current changes under consideration.  The presentation also presented dynamic pricing concepts in electricity and examples from other jurisdictions.  Power Advisory provided commentary on the overall effectiveness of the RPP and Ontario’s retail price impacts.

For more information, please see the CERI 2016 Electricity Conference website


Power Advisory to present report on opportunity to include wind energy in electricity exports to the northeastern U.S. at CanWEA connections network series

On October 18, 2016, John Dalton, President of Power Advisory LLC, will present a new report on the opportunity to include wind energy in electricity exports to the northeastern U.S. — a promising market for Quebec’s wind industry highlighted in the 2030 energy policy.

The presentation will take place at a CanWEA connections network series event in Montreal.

For information on the event, please click here


Saskatchewan denies permit for Chaplin Wind and issues new guidelines for wind projects

The government of Saskatchewan denied a permit for a 177-MW wind power facility proposed by Algonquin Power & Utilities Corp.  The project was proposed for the Chaplin area, about 200 km west of Regina in the southwest corner of the province.  The key rationale for denying the permit was  the danger posed to migratory birds.  The Chaplin area is home to a shorebird sanctuary and is a major migratory route.  Algonquin was initially awarded a contract in 2012 for the facility under an RFP held by SaskPower, and has stated that it will now be seeking to find an alternative site for the development.

The Chaplin Wind Project was rejected after being the first to undergo a provincial environmental assessment.  The provincial government has also released new guidelines for the location of wind power projects. Wind farms will have to be located more than five kilometers from environmentally sensitive areas like parks, ecological reserves and some of the province’s biggest rivers.  In effect, the province has developed an exclusion zone that highlights areas wind cannot be developed, but locating outside the exclusion zone does not negate the requirement to undergo site assessments but is intended to streamline the approval process.

The development of clear siting guidelines for Saskatchewan wind projects is of particular importance given the ambitious goals the province has announced.  The province is expected to put out an RFP for about 200 MW of wind capacity in early 2017, and by 2030 expects to add about 1,600 MW to 1,800 MW of wind capacity by 2030.  These totals are incremental to the Algonquin facility.

Power Advisory would welcome the opportunity to assist clients evaluate opportunities offered by participating in SaskPower’s forthcoming Wind RFP.  We offer a broad understanding of Saskatchewan’s electricity sector and critical success factors in power supply RFPs.