There may be some remaining uncertainty, particularly in Alberta and less so in Saskatchewan, but with uncertainty comes opportunity. There's no shortage of opportunities for renewable energy developers in those provinces, given the competitive procurements currently underway and potential future projects. The challenge developers face is finding the best way capitalize on the opportunities, despite the unknowns.
"My view on how the opportunities for renewables are evolving in Saskatchewan and Alberta is very positive and very optimistic despite some differences between the jurisdictions," Miller Thomson LLP Partner and Co-Leader of the National Projects Group, Chad Eggerman says. As legal counsel, Eggerman helps developers navigate these murky waters from his office in Saskatoon and Miller Thomson's other offices in Regina, Calgary and Edmonton. As the only national law firm with offices in all 4 major Saskatchewan and Alberta cities, Eggerman and Miller Thomson are uniquely positioned among law firms.
Saskatchewan's Request for Qualifications (RFQ) for 200 MW of wind generation has been particularly encouraging for Eggerman. While utilities set renewable energy targets with the best of intentions, they often end up on the back burner, he asserts.
"I think there was a bit of trepidation and uncertainty as to when and how [Saskatchewan's crown-owned utility] SaskPower would proceed until that first RFQ was issued," he relates. "And that's happened now. And talking with folks in the industry, that was received very well, and it served to alleviate a lot of that uncertainty around whether SaskPower was really serious about this target or not."
The competitive procurements for 200 MW of wind and 20 MW of solar are good indicators "that there really is a pipeline here that's going to extend to 2030, to provide for up to 50% of our generation coming from renewables in Saskatchewan. There's no better indicator than kicking off that process by RFQ to make it very real."
Competition Puts Pressure on Developers
The level of competition developers may face in these RFPs is their biggest concern, according to Eggerman. A bevy of developers ranging from homegrown Canadian domestics to heavyweight energy companies based in Europe and the US will all be vying for contracts, he predicts.
To win, developers will need to up their game and lower their prices. That means the taxpayers and residents of Saskatchewan stand to benefit from the large pool of contenders. "It's virtually certain that the price for renewable power will be competitive in this latest RFQ, and we suspect it will become more and more competitive as we move forward with this pipeline of projects," Eggerman explains.
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