Common authorities authorisation
What authorities authorisations should traders or homeowners get hold of previous to setting up or straight or not directly transferring or buying a renewable vitality challenge?
Legislative duty over renewable vitality initiatives is shared between the totally different ranges of presidency. Every province and territory is liable for the regulation of renewable vitality inside its personal borders, topic to federal regulation over areas of federal concern. Native and municipal governments authorise issues similar to zoning and land use, enterprise permits and compliance with by-laws.
As soon as a challenge proponent has property rights and zoning and constructing approvals, quite a few environmental and regulatory approvals shall be needed, relying on the challenge’s location and the bodily traits of the world; the challenge measurement and scale; the gasoline supply; the era and disposal of waste; the discharge traits (eg, substances and emissions); the importance of environmental and human or social results; and the way the vitality is delivered to the grid or market. These approvals could embrace a mixture of approvals. Typically, a federal, or provincial or territorial environmental evaluation of the challenge could also be required.
Canadian regulators usually take a full-life cycle perspective with regard to approvals. Which means that regulated actions embrace development and operation, in addition to closure and reclamation – and all these phases have to be contemplated within the authentic software for an approval.
Canadian regulators usually have authority to approve initiatives as offered or to approve with circumstances or amendments.
Engagement and session with doubtlessly affected Indigenous peoples and communities is required, and proponents are anticipated to think about the potential influence of a renewable vitality challenge on indigenous and treaty rights early on in challenge planning.
What kind of offtake preparations can be found and usually used for utility-scale renewables initiatives?
Offtake preparations are utilized in Canada. Offtakers are often investment-grade-rated utilities and investor-owned utilities. There are numerous situations of utility-scale renewable vitality initiatives having been constructed on government-backed energy buy agreements (PPAs) to make sure a secure income to safe financing. These preparations assure the developer a set value for vitality from a challenge that has but to be constructed.
Digital PPAs are additionally common in Canadian markets as they act as a hedge in opposition to unstable electrical energy costs. Digital PPAs don’t require a selected bodily electrical interconnection infrastructure to convey the electrical energy straight from producer to purchaser.
It is not uncommon and fascinating to have an funding grade credit standing; nonetheless, different preparations could embrace a letter of credit score issued by an appropriate monetary establishment, similar to a Schedule I Canadian chartered financial institution or a father or mother assure.
Procurement of offtaker agreements
How are long-term energy buy agreements procured by the offtakers in your jurisdiction? Are they the topic of feed-in tariffs, the topic of multi-project aggressive tenders, or are they usually developed via the submission of unsolicited tenders?
Utilities usually procure long-term PPAs via a aggressive name for tenders, approaching a number of suppliers to permit themselves optionality. Some provinces have utilised feed-in tariff programmes. Personal energy purchasers will use much less formal procedures to barter PPAs.
What authorities authorisations are required to function a renewable vitality challenge and promote electrical energy from renewable vitality initiatives?
The federal government authorisations required to function a renewable vitality challenge are usually much like or the identical as these required to assemble a challenge. Such approvals are issued by federal, provincial and territorial, and native or municipal regulators.
If the operations contain any interprovincial transport of vitality or supplies, federal transportation of harmful items laws could also be related, and any export of vitality interprovincially or internationally shall be topic to federal authorisations.
To the extent the operations end in any adjustments or ongoing impacts, new or extra approvals could also be required. Furthermore, environmental and regulatory approvals in Canada usually have ongoing reporting necessities, and operations could also be topic to periodic inspections.
Are there authorized necessities for the decommissioning of renewable vitality initiatives? Should these necessities be funded by a sinking fund or via different credit score enhancements throughout the operational section of a renewable vitality challenge?
In Canada, usually each vitality growth challenge is regulated in any respect phases of its life cycle, together with decommissioning. This may occasionally happen when the vitality useful resource has been depleted, the infrastructure is out of date or the operations are now not possible or economical.
Normally, the developer of the renewable vitality challenge has to inform the regulatory physique of every province and territory, and so they should fulfill the environmental allowing necessities for closure and reclamation. The regulated public utilities need to approve the elimination of the challenge from public service and fee base.