NEWS
02/05/2018 06:50 EST | Updated 02/05/2018 07:20 EST

Indigenous investors required in second round of Alberta renewable power auction

CALGARY — The Alberta government says it will require indigenous equity investment from proponents in its second round of bids to build renewable energy projects in the province.

Environment Minister Shannon Phillips says the province is targeting projects producing 300 megawatts of electricity in its second round which is being designed to boost the economy and training of indigenous people.

She says a third round will follow the same rules as the first in targeting 400 MW of output from any proponent, with details of both to be established by the Alberta Electric System Operator.

In December, the province announced it had chosen three companies who are to spend about $1 billion to build four wind power projects in southern Alberta capable of generating 600 MW of new generation, 50 per cent higher than its goal.

Under its agreement with the companies, the province will subsidize the plants using funds from its levy on heavy industrial emitters if the power price falls below the average bid price of $37 per MW-hour — if it's higher, the companies are to pay the difference to the province.

The province wants to add up to 5,000 MW of renewable energy through private sector investment of about $10 billion by 2030.