The Canadian government has taken another concrete step in the Greening Government Strategy to reduce greenhouse gas emissions from federal government buildings, vehicle fleets and other operations. While Canadian officials issued the latest directive at the federal level, the move is specific to energy needs in Alberta.
The Honourable Anita Anand, minister of public services and procurement, announced the government has released an RFP to buy the equivalent of more than 130,000 MWh of solar to power federal operations in Alberta. “Today’s announcement is another important and significant step forward in support of the Greening Government Strategy,” Anand said.
National Renewable Energy Certificates
Canada also declared plans to buy tradable commodities called renewable energy certificates from new clean energy generation in Canada. Doing so will enable the nation to stimulate net new Canadian clean electricity production and attribute its energy consumption as clean in regions where new renewable sources are not yet available.
Utility companies generate one renewable energy certificate for every megawatt hour of renewable electricity they create. These entities can then sell RECs separately from the electricity associated with them.
As a result of REC purchases under the 2022 Clean Electricity Initiative, 22 federal departments and agencies will be able to claim their energy consumption comes from green sources in parts of the country where local clean electricity initiatives aren’t immediately achievable.
Stimulating the Development of New Clean Electricity Infrastructure in Canada
Together, the new RFP and REC purchasing will ensure Canada is reducing its greenhouse gas footprint by approximately 56% of total real property emissions in Alberta — enough energy to power about 18,750 homes. The agreements will also offset approximately 41 kilotonnes of greenhouse gas emissions from electricity use in the rest of Canada.
Canada’s Clean Electricity Initiative plans to achieve 100% clean electricity consumption by 2022, to reduce greenhouse gas emissions and stimulate growth in clean renewable power infrastructure. Public Services and Procurement Canada has applied this initiative’s goals to its specific requirement for net new clean electricity generation to power federal operations in Alberta.
The program aims to quadruple the province’s installed PV capacity every year, up to 140 MW by 2022. These procurements will also support economic opportunities for Indigenous businesses by encouraging participation in the move toward clean energy. Each RFP incorporates mandatory requirements for Indigenous participation through equity holdings or reservations under the Procurement Strategy for Aboriginal Business.
Alberta Clean Electricity
Alberta’s procurement approach for clean electricity involves entering one or more power purchase agreements with renewable energy generators. These agreements will secure renewable electricity by using funds the Canadian government already spends on utility bills. Power purchase agreements are a straightforward solution to increase clean electricity-generating capacity in Alberta.
As a result of the purchase of net new renewable electricity in Alberta under the 2022 Clean Electricity Initiative, the 11 federal participants holding assets in Alberta will be able to attribute their energy consumption from green sources throughout the province.
