How We Work with IPPs
June 17, 2024
Quotables:
- We plan to add up to 3,000 megawatts (MW) of solar and wind generation to our power system by 2035. Independent power producers (IPP) are helping to make this happen.
- We know many companies have experience building and operating wind and solar facilities. When we work with these companies, we’re able to use their expertise and secure a better price for you.
- The Power Purchase Agreement (PPA) includes a commitment from the IPP that they’ll plan, develop, finance, construct, own, operate, maintain and decommission the facility. The IPP also commits to cleaning up the site after the facility is no longer operating.
We talk a lot about independent power producers (IPPs). That’s because they play an important role as we diversify our power system for the future. We plan to add up to 3,000 megawatts (MW) of solar and wind generation to our power system by 2035. IPPs are helping make this happen.
This is the first in a series of blogs on the topic of IPPs.
We’re planning for more wind and solar projects. With that, interactions between developers and communities are becoming more common. We want to let you know how we work with IPPs to provide reliable, sustainable, and cost-effective power for you and communities throughout the province.
What are IPPs?
An IPP is a company separate from SaskPower that we select to develop, construct, own, operate and maintain wind or solar power facilities. The IPP then sells the power generated to Saskpower.
To date, IPPs are responsible for generating 1,124 MW of power into the power system. That amounts to about 22% of the total capacity.
Why Do We Work with IPPs?
We’re committed to achieving a net-zero greenhouse gas (GHG) emissions power system by 2050 or earlier. To achieve this, we’re making major investments in emissions-free generation such as wind and solar power.
We know many companies have experience building and operating wind and solar facilities. When we work with these companies, we’re able to use their expertise and secure a better price for you.
Choosing an IPP
We typically select IPPs for specific projects through a competitive procurement process. We post these opportunities on SaskTenders.ca and Merx.com.
We pick the proposal that best meets the requirements of the project. To complete the process and proceed with construction, the successful IPP must sign a Power Purchase Agreement (PPA) with us.
The PPA includes several important conditions. These include:
- A commitment from the IPP that they’ll plan, develop, finance, construct, own, operate, maintain and decommission the facility. The IPP also commits to cleaning up the site after the facility is no longer operating.
- A fixed purchase price that ensures we’re getting power at a cost-effective price.
- Requirements on how the facility is designed and operated to maintain the safety and reliability of our power system.
- Indigenous ownership and participation requirements. This provides more opportunity for Indigenous companies to participate in generating power and it supports our commitment to economic reconciliation.
Wind and Solar Power IPP Projects
There’s no one source that can meet all our province’s power needs. It’ll take a combination of sources to provide reliable, sustainable, cost-effective power into the future.
Wind and solar power will help us meet GHG emissions standards and provide a cost-effective generation option. But wind and solar are intermittent sources, so when the sun doesn’t shine or the wind doesn’t blow, we must rely on other options such as natural gas.
Currently, we’ve got these wind and solar projects in development:
- Bekevar Wind Facility (200 MW) near Moose Mountain Provincial Park – under construction and in service by 2025
- Iyuhána Solar Facility (100 MW) near Estevan – in pre-construction
- Two 100 MW solar projects in south central Saskatchewan – proposals under evaluation
- Two 200 MW wind projects in south central Saskatchewan – proposals under evaluation
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