Working with Indigenous partners towards a clean energy future 1
Indigenous Communities We Serve with Diesel Power YUKON 5 COMMUNITIES 10.54 MW OF POWER NWT 4 COMMUNITIES 3.04 MW OF POWER ALBERTA 7 COMMUNITIES 6.78 MW OF POWER 2016 Actual Installed Capacity 2
A Strong Desire for Renewable Energy Pan-Canadian Framework on Clean Growth and Climate Change and grants to support renewables. Federal Government Territorial/ Provincial Governments Indigenous Governments/ Communities Regional Energy Strategies to integrate renewables and displace diesel. Some funds may be available. Expressed desire to reduce emissions, eliminate smell and noise of diesel facilities, and to be a partner in renewable power production. ATCO A strategic focus to displace diesel, integrate renewables and partner with Indigenous communities and Independent Power Producers. 3
Finding the Right Balance Renewable Energy Customer Power Rates REGULATED UTILITY The integration of renewables must not cause customer power rates to increase. 4
When Government Funding is Necessary Community A Community B Diesel Only 79.7 /kwh Renewable/ Diesel Hybrid & Storage 74.9 /kwh Seek one-time funding to offset the difference Diesel Only 68.5 /kwh Renewable/ Diesel Hybrid & Storage 95.6 /kwh PROCEED: Integrating renewables and storage will lower cost of generating electricity in the community. No government funding required. SECURE FUNDING BEFORE PROCEEDING: Integrating renewables and storage will increase the cost of generating electricity in the community and put upward pressure on customer power rates. Government funding necessary. 5
Federal Funding Opportunities BUDGET 2017: $2 billion to displace diesel in the territories and $4 billion to build power system interties in North & Alberta (over 10 years) Funds are allocated in two primary areas: 1. Deployment/Demonstration: 2. Research & Development: Getting solutions into market within a Preparing to place solutions in market in next 4-year project window. 3-6 years. Includes business model validation and new operating practices to inform policy and market design. Biggest opportunities: 1. Bilateral payments from Federal government to Territorial/Provincial Governments 2. Specific Program/Project funding (e.g., NRCan) 6
NRCan Funding Timelines (2018 Program) Q4 2017 April 2018 Call for Expressions of Interest Review submissions Full Proposals Due Review Proposals Distribution of Federal funding expected Fall 2017 Q1, 2018 7
Ownership Opportunities for Indigenous Communities Own and operate a local renewable energy source and sell power to the utility (i.e., IPPs) Deemed ownership of regulated utility assets (i.e., interconnections) Equity ownership in companies and projects 8
ATCO North: A partnership between ATCO, Indigenous communities and other private investors ATCO North: A partnership between ATCO, Indigenous communities and other private investors Northland Utilities: A 30-year Indigenous / non-indigenous partnership 9
Deriving Value Capacity Required Benefits Capital Jobs & Training Economic Development Earnings People Reduction in diesel and C02 Cleaner air; less noise Increased power reliability and security 10
Questions and Discussion Doug Tenney Vice President, Northern Development, ATCO Doug.Tenney@atco.com 403-245-7739 11