Three companies join hands to build wind power projects in Alberta

The Alberta government has reportedly finalized three energy companies to build four wind energy projects in the southern region of Alberta, a western province in Canada. The total investment for the projects by the companies is expected to be around USD 1 billion. Through the auction, the Alberta government has apparently received attractive bids from these energy companies, which exceeded the energy generation goal of the Alberta government by 50%. Initially, the government had been targeting 400 MW of renewable energy generation, but now, it is reported that it would build 600 MW.Reports cite that these four power generation plants are likely to start operating by 2019 and will fulfill the energy requirement of approximately 255,000 homes. These companies have offered a price bid of average 3.7 cents a KWhr for the coming 20 years and have signed an agreement with the government related to energy costs. In fact, if power price decreases below bid price, then the government will provide subsidies to plants and if it increases, then companies are expected to pay the difference to the government.

For the record, the winning bids poured forth from Madrid-based EDP Renewables with a project of capacity 248 MW, Edmonton-based Capital Power with a project of 201 MW, and Rome based leading power company, Enel Green Power Canada, with plants of 115 MW and 31 MW respectively.

The Premier of Alberta, Rachel Notley said that the bid placed by the three companies was the lowest electricity price across Canada, which is likely to set as a benchmark for upcoming similar auctions. Furthermore, the president of the Canadian Wind Energy Association, Robert Hornung stated that the low-priced energy bid placed by energy companies for wind power generation could generate fierce competition ahead for natural gas power plants.

As per reliable reports, the Alberta government is looking forward to investing USD 10 billion to build up to 5000 MW renewable energy by 2030.