R E N E WA B L E D E V E L O P M E N T I N S A S K AT C H E WA N

PRESENTED BY TIM SCHUSTERDIRECTOR

INDEPENENT POWER PRODUCER DEVELOPMENTNOV. 16, 2016

1

Key Challenges Facing SaskPower

• Aging facilities and infrastructure

• Historic investments in infrastructure

• New and emerging emissions regulations

• Increased demand for electricityo Equivalent to the city of Saskatoon by 2019

• Text over a photo

• When placing text on a photo, ensure readability through contrast. Make copy black on a light background, or white on a dark background.

• Keep the copy simple and short as the background may be distracting

3

40%Reduction in emissions by 2030

Our goal:

4

GENERATING CAPACITY

Average annual solar intensity in

Saskatchewan

Renewables Roadmap• 180 MW of solar by 2031• 1,600 MW of new wind by 2030• Biomass - Meadow Lake Tribal Council and Paper

Excellence• Hydro - 50 MW Tazi Twé project in partnership with

Black Lake First Nation• Imports - 25 MW agreement with Manitoba Hydro

(2015-2022) and 100 MW agreement with Manitoba Hydro (2020-2040)

• Geothermal - Deep Earth Energy Production (DEEP)

Goals of the Competitive Procurements - Wind and Solar

• Fair, Open, Transparent Competitions• Obtain good value• Make sense to the stakeholders• Are stable and consistent throughout the

competition• Provide projects that are a good fit in the

communities• Successful transition of the SPC System

8

Goals of the Competitive Procurements - Wind and Solar

High level of Involvement in the Competitions • Strong level of interest in the projects being offered in

Saskatchewan• Over 125 organizations have downloaded the Solar RFQ

form• Very high level of participation anticipated for the Wind

competition• Reflects the high level of interest in the renewable builds

being put forward in Saskatchewan and Alberta• No SaskPower Build Option in this Wind or Solar

competition9

Preparation for the Competitive Procurements - Wind and Solar

Consultation with many groups over the last year• Renewables Developers, Contractors• CanWEA, CanSIA• Government • Communities, FNPA• Rural and Town Administrations • Environmental Groups• Other Provinces and System Operators

10

Key Stakeholders• Energy rate payers• Communities• First Nations • Proponents / Developers • Vendors• Contractors • Government of Saskatchewan• Environmental organizations

Upcoming Competition SchedulesWind (up to 200 MW) : • RFQ to be issued in January of 2017• RFP to be issued mid-May of 2017• Project Awarded by the end of 2017• Project In-Service target of Q2 2020

Solar (10 MW) : • RFQ issued in September of 2016• RFP to be issued late - December of 2016• Project Awarded Q4 of 2017• Project In-Service target of Q4 2018

12

Near Term Projects• 60 MW of solar power by 2021

o Enough clean electricity to power 10,000

to 12,000 homes

• 200 MW of additional wind capacity by

2020

SPC Power Purchase Agreements• Price and escalation established in the 20

year Power Purchase Agreement • Solid, predictable cash flow through the

contract• Very bankable and attractive to Developers

and Investors • Energy only PPA’s with no payment for

capacity or ancillary services at this point

Year MW Addition2021 60*2025 60**2031 60**

Long Term Outlook - The Current Preferred Supply Plan calls for addition solar capacity as follows:

*Solar will be through Utility, Community and FNPA projects**Builds subsequent to the first 60 MW will be from a combination of sources with a significant utility element

Year MW Addition2019 207 2020 2002021 2002023 2002024 2002025 2002026 2002027 2002028 2002029 100

Long Term Outlook - The Current Preferred Supply Plan calls for addition wind capacity as follows:

UTILITY SCALE SOLAR GENERATION

Util ity Scale Solar Projects

SASKPOWER-20 MW COMMUNITY-20 MW• Competitive RFQ/RFP

• 2 x 10 MW projects

• SaskPower will provide a site in RFP; Independent Power Producer (IPP) may also suggest their own site

• SaskPower will pay up to a defined maximum for connecting a project to the SaskPower grid

• Model to be determined

• Consultation with stakeholders to gather input and determine approach

• Project sizes TBD

• Proponents will propose sites

• Sharing of connection cost will be determined

Opportunities for First Nations • Master agreement between SaskPower and First

Nations Power Authority (FNPA)

• The agreement establishes the protocol for development of the projects by FNPA

• Finalizing terms for 20 MW of solar projects and 20 MW of flare gas projects through set aside agreements

FNPA-20 MW of Solar and 20 MW of Flare Gas

• 2 x 10 MW projects for each technology

• FNPA defines approach to the projects

• FNPA Identifies the Project Partners

• PPA for the Project with SaskPower

Other Opportunities for First Nations

• Engaged in a Proposal for a biomass fired generation project that would be located near Regina

• Micro Hydro project in Saskatoon

• Discussing other generation opportunities

SPC - Meeting Our Challenges • Investing to renew and grow the system

• Evaluating all generation options to meet emissions targets and load demand

• Working with private power producers, communities and First Nations to add more clean energy capacity

• Sharing information to help our customers understand our direction

Q u e s t i o n s ?

23