SaskPower started this fall implementing changes to facilitate power generation that helps to meet its goals of reducing emissions and increasing renewable energy generation.
The first step is the Power Generation Partner Program (“PGPP”). For the next two years, the program will support 10MW per year of renewable energy projects, including solar power, biomass, biogas, hydro and geothermal. Each project can be sized between 100KW and 1MW and priority will be given to the projects located in the areas where SaskPower requires additional energy generation.
SaskPower Power Generation Partner Program offers a fixed generation off-take price $108.22/MWh escalated 0.6% annually for a term of 20 years.
At the right solar site, an experienced EPC solar contractor can execute projects under this program that generate attractive financial returns. Feel free to contact us for details and for opportunities to partner on the applications.
The second step is expected in modifying the current Net-metering program that is expiring in November 2018. During the last one month of November, SaskPower can still apply to qualify to the existing Net-Metering program terms and conditions that offer 20% rebate up to $20,000 per project. Relatively high electricity rates combined with decreasing solar PV costs create a great environment for investing in smaller-scale solar projects that sized to offset consumption of residential or commercial customers. In the declining solar PV prices, there has not been a better time to capitalize on the existing Net-Metering program terms and conditions.
There is some uncertainty remains about the new Net-Metering program announcement timing and the new terms. While we expect the 20% rebate is likely to be terminated, we hope that the new program will address the long-term certainty and the term, which the existing program lacks.