Government of Canada, Natural Resources Canada (NRCan) – Smart Renewables and Electrification Pathways (SREPs) Program

Description:

The Smart Renewables and Electrification Pathways Program (SREPs) provides up to $964 million over four years for smart renewable energy and electrical grid modernization projects. This program will significantly reduce greenhouse gas emissions by encouraging the replacement of fossil-fuel generated electricity with renewables that can provide essential grid services while supporting Canada’s equitable transition to an electrified economy.

The Program includes four distinct deployment streams:

  1. Established Renewables,

  2. Emerging Technologies,

  3. Grid Modernization (only eligible applicants are Utilities and System Operators),

  4. Strategic Dialogue Linked Projects (programs under any of the above-mentioned streams and that have been identified by the Program as being part of an established, ongoing regional dialogue between federal and provincial/territorial jurisdictions through a Memorandum of Understanding, or Projects considered to be linked to negotiations between the federal and provincial/territorial governments.).

Comments on Funding:

Funding will take the form of a grant of maximum $50,000,000 and up to:

  • 10% of total project costs for Established Renewables;
  • 30% of total project costs for Emerging Technologies;
  • 50% of total project costs for Grid Modernization;
  • 50% of total project costs for Established Renewables or Emerging Technology Projects (minimum generation capacity size of 500 kW for Indigenous-owned projects) that have meaningful Indigenous ownership (up to 50%);
  • 75% of total project costs for Established Renewables or Emerging Technology Projects (minimum generation capacity size of 500 kW for Indigenous-owned projects) that are majority Indigenous-owned (>50%).

For Projects which fall under the Grid Modernization Stream, if a Utility or System Operator is Indigenous-owned, the funding maximums above (50% and 75%) also apply.

The maximum eligible percentage of Total Project Costs and maximum eligible funding for Strategic Dialogue Linked Projects will mirror that of the most appropriate of the other three Program Streams. The final funding percentage will be determined according to demonstrated need through the Application process.

The maximum funding percentage for a Project that falls under more than one stream will be determined according to the proportion of eligible expenditures in each Program stream.

Indigenous-Owned Projects

Grants for Indigenous Engagement Activities: Funding is up to $50,000 per Applicant per fiscal year, to support Indigenous engagement and consultation activities and expenses related to eligible Projects.

The maximum level of total Canadian government funding authorized under this Program is:

  • 75% of Total Project Costs for for-profit organizations;
  • 100% of Total Project Costs for provincial, territorial, and municipal governments or their departments and agencies, as well as Indigenous Recipients and non-profit organizations.

Eligibility:

Applicants must be owners of Eligible Projects and may include:

  • legal entities validly incorporated or registered in Canada;
  • provincial, territorial, regional and municipal governments and their departments and agencies;
  • Indigenous communities and governments, Tribal Councils, National and regional Indigenous councils or organizations, and Indigenous (Majority owned and controlled by Indigenous peoples) for-profit and not-for-profit organizations.

Applications can only be submitted by a single entity. Where an Applicant is a newly formed Limited Partnership, the Program may require the Applicant to secure a Guarantor for the Project. The Guarantor will be required to sign a form of Guarantee, as provided by the Program, of an amount up to the proposed Program funding amount.

Eligible Projects must:

  • support the installation of permanent (for the normal life of the equipment) proven commercial technologies with the intent that the project continue to operate in its intended operational environment for the entirety of its expected lifecycle;
  • support the modification of existing processes, operating procedures, equipment or systems for commercial operations (for the normal life of the expected modification) to accommodate and utilize modern grid operations and renewable technologies;
  • be located in Canada and provide benefits to the Canadian electricity/energy systems.

Documentation Needed:

Applicants must submit:

  1. Permits and Regulatory Approvals documentation such as:
  • evidence of approval or conditional approval from regulatory agencies required to carry out the Project, if applicable or a justification if no approvals are required.
  • a list of permits secured for the Project and a schedule for additional permits required to carry out the Project, if applicable.
  • evidence of access rights to the required land for the Project (copies of lease agreements, license agreements and/or easement agreements);
  • evidence of completed environmental assessments required to carry out the Project, if applicable.
  1. Financial documentation such as:
  • two years of Financial Statements if they are not publically available online;
  • financial statements of parent organizations for newly formed organizations, such as limited partnerships;
  • confirmation or conditional approval of financing required for the Project, if applicable;
  • details of other funding requests and the status of each;
  • details about the status of any Power Purchase Agreement (or Conditional Agreement) or any agreement with offtakers, if applicable. Include information on the purchaser, price and length of term.
  • an anticipated average price for Projects operating in markets.
  1. Technical documentation such as:
  • any resource assessments, energy yield assessments and/or feasibility studies completed for the Project or a summary signed by a professional engineer, if applicable. The analysis should be site specific. For generation projects, include production modelling results and/or an assessment of expected production. For energy storage projects, include an analysis of how the system will operate to achieve program outcomes.
  • documentation of the Project component’s technical characteristics (such as specification sheets and power curves) as well as technical standards met for all technologies.
  • a Levelized Cost of Energy analysis which includes anticipated capital costs, average operation and maintenance costs, and anticipated energy production. Please include a list of detailed methodology and assumptions with an explanation to support this analysis.
  • a standard Single-Line Diagram of the Project from the point of interconnection (applicable for all projects connecting to an electricity grid), if applicable;
  • all of the associated grid service documents such as references to applicable grid codes, technical standards, equipment data sheets, testing results, and a verification plan for these capabilities.

Other Things to Note:

I. Projects will be eligible for funding from the date they receive confirmation from the Program on Project Approval until the Project Completion Date or March 31, 2025, whichever is earlier. As this is a continuous intake process, the Program will be continually accepting Project Registrations and Technical and Financial Applications until the Program end date of March 31, 2025 or until available Program funds run out, whichever is earlier. There is no time requirement between the Project Registration and Application submission.

II. Projects may include, but are not limited to, the following for each Program stream:

  1. Established Renewables: 
  • onshore wind,
  • solar photovoltaic (including bi-facial),
  • small hydro.
  1. Emerging Technologies:
  • offshore wind;
  • geothermal (heat and/or electricity);
  • concentrated solar power;
  • energy storage;
  • water current, tidal or wave;
  • etrofits to enable grid services on existing renewable energy plants;
  • non-utility led grid modernization projects;
  • food innovation challenge.
  1. Grid Modernization (only eligible applicants are Utilities and System Operators):
  •  utility system software and hardware upgrades;
  • hardware or software retrofits to an existing renewable energy;
  • software or hardware to enable aggregating ders of 500 kw ac or more (e.g., virtual power plant);
  • residential and building integrated renewable energy;
  • electricity market innovation;
  • grid monitoring and automation;
  • data management and communication;
  • demand management;
  • Electric vehicle (EV) integration;
  • microgrids.

III. Meaningful Ownership means that the Indigenous share of ownership is significant enough as a portion of project costs that it will result in long term benefits for Indigenous communities and that the Indigenous share of ownership of the project is as follows:

  • 25% where Total Project Costs are up to $100 million;
  • 20% where Total Project Costs are greater than $100 million, up to $200 million;
  • 15% where Total Project Costs are greater than $200 million, up to $300 million;
  • 10% where Total Project Costs are greater than $300 million.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *