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.
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
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
Today the Alberta Government announced a firm target of 30% renewable energy by 2030. As part of this firm target, the government will support an additional 5,000 MW of renewable generation by 2030 (see here). The 30% target had not previously been identified as a firm target, and prior indications had been that the support for renewables would be 4,200 MW by 2030. As such, this announcement marks a strengthening of renewable targets for Alberta.
The 30% energy target will be achieved mainly through the Renewable Electricity Program (REP) that targets large-scale grid renewables. The Government’s news release states that “the province will solicit enough investment in Alberta’s electricity system to meet the target, while ensuring projects come online in a way that does not impact grid reliability and is cost-effective”. The government expects that $10.5B of investment in Alberta renewables will be supported through this initiative.
A few high-level details were released, re: the REP:
- Projects to be based in Alberta;
- Only new or expanded projects;
- Projects must be 5 MW or greater;
- Projects must meet the Natural Resources Canada definition of renewable sources.
Further details on how the REP will operate will be released later this year and will be based on recommendations provided by the AESO. The Government is now working with AESO on detailed program design and remains on target to release details of the program in the coming months.
Work is also underway to improve Alberta’s rules around smaller-scale electricity generation, including micro-generation. Government is engaging expert stakeholders on ways to make it easier for individual Albertans and communities to create their own renewable energy. These small-scale generation initiatives along with energy efficiency programs are being developed under the auspices of the newly created Energy Efficiency Alberta organization.
On June 30, 2016, the Massachusetts Senate passed energy bill S.2372. The energy bill is part of an effort to diversify the state’s energy mix and comply with greenhouse gas emissions reduction requirements. The energy bill is expected to have a significant impact on the long-term energy policy and opportunities for renewable energy development.
Power Advisory Review of Clean Energy Generation Senate Bill
North American heads of state met yesterday in Ottawa to commit to generating half of the continent’s electricity from “clean energy” sources by 2025. These clean energy sources include renewable energy, nuclear generation, fossil fuel plants that use carbon capture and storage, and energy efficiency. Currently, 37% of North American electricity is provided by clean energy sources. In the U.S. which represents about 75% of total North American generation, only about 33% electricity generation is from renewable and nuclear facilities as shown in the figure below. In stark contrast, about 80% of Canada’s electricity is provided by clean energy sources, with hydro representing about ¾ of this.
Particularly troubling for the U.S. are the pending retirements of the following nuclear units: Clinton, Diablo Canyon, Fort Calhoun, Fitzpatrick, Oyster Creek, Pilgrim and Quad Cities. The table below indicates the location, rated capacity and 2015 annual electricity output of these units. In 2015 they generated almost 64 TWh, representing 1.6 percent of total U.S. utility generation. Clearly their loss will have a significant impact on the investment required for the U.S to achieve this 50% clean energy goal. Equally important are the implications of the loss of this non-carbon emitting generation on the cost of achieving the emission reductions required by the Clean Power Plan. With the stay of the Clean Power Plan, a “policy bridge” to support this generation would appear to be appropriate.
U.S. Nuclear Generating Units Scheduled for Retirement
According to the recently released 2016 Annual Energy Outlook about 43% of U.S. electric generation will be produced by such clean energy sources by 2025, with a major contributor to this growth the additional renewable energy spawned by the extension of the production tax credits. This gap suggests that additional policy support will be required to achieve the 50% goal. Additional clean energy from Canada, such as several New England states are considering, could assist the US in achieving its target.
The Ontario Energy Board (Board) has published a multi-year roadmap for updating and improving Ontario’s Time-of-Use electricity pricing system. The Board’s strategy is based in part on a jurisdictional review of dynamic pricing programs employed elsewhere performed by Power Advisory. In particular, Power Advisory reviewed the experience with many forms of time-varying pricing in other jurisdictions, and identified which ones would be most appropriate for Ontario. Our report identified Critical Peak Pricing (CPP) as both effective in reducing electricity system costs, and requiring relatively little consumer effort to achieve a significant cost impact. We also highlighted the importance of enabling technologies, such as smart thermostats, in achieving cost-effective results. Building on Power Advisory’s recommendations, the Board’s roadmap includes two types of pilot studies: one focusing on simple forms of dynamic prices such as CPP, and the other focusing on enabling technologies which will allow more complex pricing.
Board’s roadmap http://www.ontarioenergyboard.ca/oeb/industry/regulatory+proceedings/policy+initiatives+and+consultations/regulated+price+plan#20151116
Power Advisory’s Report