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Another 700 MW: AESO Announces Rounds 2 and 3 of the Renewable Electricity Program

Building from the momentum of Round 1 of the Alberta Electric System Operator’s (AESO) Renewable Electricity Program (REP), the Government of Alberta directed the AESO to develop Round 2 (REP 2) and Round 3 (REP 3).  The AESO will open REP 2 and REP 3 in early 2018 and will run the two competitions in parallel.  It is anticipated that the successful bidders will be announced by the end of 2018.

REP Round 2:

REP 2 will have a procurement target of 300 MW and will include an Indigenous equity ownership requirement. Each bid within REP 2 will have a minimum Indigenous equity component, which can include an ownership stake in the project or land use agreement between the company and the community.  The Indigenous community must be located in Alberta.

For the purposes of REP 2, the Government of Alberta has defined Indigenous as one of the following:

  • First Nation communities, Métis Settlements, Métis Nation of Alberta, and the Aseniwuche Winewak Nation; or
  • Indigenous-community owned organization and/or business.

REP Round 3:

REP 3 will have a procurement target of 400 MW and will follow the same competition format as REP 1. A discussion of REP 1 can be found in our previous posts.

Key Features for both REP 2 and REP 3

The following key features will apply to both competitions:

  • eligible projects are limited to new or expanded renewable electricity generation projects located in Alberta;
  • able to connect to the existing distribution or transmission systems;
  • greater than 5 MW;
  • eligible fuels must meet Alberta’s definition of renewable energy resources as defined in the Renewable Electricity Act; and
  • the payment mechanism must be compatible with Alberta’s evolving power market construct.

The AESO will provide competition proposals on REP 2 and REP 3 to the Minister of Energy at the end of February 2018. Once approved, specific dates and details for each competition will be provided by the AESO.

Source: AESO online: (accessed 5 February 2018).



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