Canada will purchase Renewable Energy Certificates (REC) from new clean energy generation in Canada
Public Services and Procurement Canada (PSPC) is taking concrete steps to meet the Government of Canada’s commitment in the Greening Government Strategy to reduce greenhouse gas emissions from federal government buildings, vehicle fleets and other operations.
The Honourable Anita Anand, Minister of Public Services and Procurement, announced the Government of Canada has launched Requests for Proposal to buy new clean electricity in the province of Alberta to power federal operations there.
As well, Canada will purchase Renewable Energy Certificates (REC) from new clean energy generation in Canada. This will enable Canada to attribute its energy consumption as clean in regions where new clean renewable sources are not yet available. The Government of Canada is excited about this opportunity to stimulate net new Canadian clean electricity generation through the procurement of RECs.
Together, these contracts will help to ensure Canada is reducing its greenhouse gas footprint by approximately 133 kilotonnes or 56% of total real property emissions in Alberta. Additionally, the contracts will displace approximately 41 kilotonnes of greenhouse gas emissions from electricity use in the rest of Canada.
Through these open, fair and transparent competitive procurement processes, PSPC will be a key purchaser of clean electricity and will support the growth of new clean electricity and renewable power infrastructure.
The Government of Canada’s Clean Electricity Initiative plans to use 100% clean electricity by 2022, where available, to reduce greenhouse gas emissions and stimulate growth in clean renewable power infrastructure. PSPC has applied the goals of the Government of Canada’s Clean Electricity Initiative to its specific requirement for net new clean electricity generation to power federal operations in Alberta.
These procurements will support economic opportunities for Indigenous businesses by encouraging participation in the move towards clean energy. Each Request for Proposal incorporates mandatory requirements for Indigenous participation through equity holdings or set-asides under the Procurement Strategy for Aboriginal Business.
“The Government of Canada is pleased to announce the launch of Requests for Proposal to buy new clean electricity in the province of Alberta. Today’s announcement is another important and significant step forward in support of the Greening Government Strategy.”
The Honourable Anita Anand
Minister of Public Services and Procurement
The Government of Canada’s combined electricity consumption includes approximately 532,000 megawatt hours annually from greenhouse gas emitting sources of electricity. Federal buildings in Alberta consume 31% of that total, and an additional 23% is consumed in other regions of Canada where local clean electricity initiatives will not be available in the near term.
Both the Alberta Solar Electricity and the national REC requirements will stimulate the development of new clean electricity infrastructure in Canada.
National Renewable Energy Certificates
RECs are tradeable commodities that are generated by renewable electricity entities. Entities generate one REC for every megawatt hour of renewable electricity created. Generators can then sell RECs separately from the electricity they are associated with.
As a result of the purchase of RECs under the 2022 Clean Electricity Initiative, 22 federal departments and agencies will be able to attribute their energy consumption from green sources in parts of the country where local clean electricity initiatives will not be available in the near term.
Alberta Clean Electricity
The approach for the procurement of clean electricity in Alberta involves entering into one or more Power Purchase Agreements with clean electricity generators. These Power Purchase Agreements will secure renewable electricity by using funds that the Government of Canada already spends on utility bills. Power Purchase Agreements will directly result in added 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 in Alberta.
Source: Company Press Release