The Canadian Wind Energy Association (CanWEA) applauds the decision of the Government of Alberta to return to an energy-only market. This market structure provides a critical revenue stream for wind energy facilities, allocating all revenues collected to generators based upon the electricity they produce.
Unlike in capacity markets, where electricity generators are paid for their overall ability to produce electricity (in addition to the electricity they produce and sell in real time) in energy-only markets, electricity generators are paid only for the electricity they produce in real time when electricity is required.
This structure is particularly important given the strength of Alberta’s wind energy resource. If combined with the sale of carbon credits under the Technology Innovation and Emission Reduction (TIER) program, the energy-only market will continue to deliver significant investment in wind energy, in addition to ongoing landowner and property tax payments.
“With a smart, competitive market design that demonstrates that the province is ‘Open for Business,’ we can finance and build wind energy projects,” said Evan Wilson, Regional Director – Prairies, CanWEA.
He added: “Both the energy‐only market and the TIER program, including a robust carbon credit trading program, will be required for Alberta to fully capitalize on its wind energy potential – ensuring the continued economic operation of existing assets while also making Alberta a competitive destination for new investment in wind energy.”
Filed Under: News