What is the Smart Renewables and Electrification Pathways Program? By Thomas McInerney and Vivek Warrier
On June 2, 2021, Natural Resources Canada (NRCan) announced its Smart Renewables and Electrification Pathways Program (SREPs) in support of Canada’s ongoing effort to reach net-zero emissions by 2050. The $964-million commitment over four years will reduce greenhouse gas emissions by encouraging the replacement of fossil-fuel generated electricity with cleaner energy technologies, such as wind and hydro. To facilitate this transformation to Canada’s electric grid, SREPs offer
What projects are eligible? SREPs provide funding to projects under the following streams: • Established renewables (eg., onshore wind, solar photovoltaic); • Emerging technologies (eg., energy storage, geothermal, tidal); • Grid modernization (eg., micro-grids, virtual power plants); and • Strategic Dialogue Linked Projects (SDLPs).
financial assistance to eligible projects
Projects under established renewables
during the construction phase. This
and emerging technologies capable
investment in smart renewable energy
of supplying electricity must also
and grid modernization projects will
provide grid services that synchronous
make clean, affordable electricity more
generators (eg., hydro, natural gas,
accessible in communities across the
coal, or nuclear) have ordinarily
country and improve the connectivity
supplied in the jurisdiction where the
and efficiency of Canada’s existing electrical infrastructure. Projects must use market-ready technologies and will be expected to demonstrate a commitment to workplace equity, diversity and inclusion. SREPs is showing additional support for Indigenous communities by allotting a minimum percentage of
project is located.
dialogue between federal and provincial/territorial jurisdictions through a Memorandum of Understanding, or projects linked to negotiations between the federal and provincial/territorial governments.
What is the funding limit for each project stream? Funding limits are based on a percentage of total project costs. This percentage varies according to project stream, with a $50-million cap on any single project. The maximum eligible percentage of total project costs for each stream is as follows: 10 per cent of established renewables; 30 per cent of emerging technologies; and 50 per cent of grid modernization. Maximum eligible funding for SDLPs will follow that of the most fitting of the other three streams.
Grid modernization projects must
Where a project falls under multiple
contribute to a broader range of grid
streams, the maximum funding
services and value streams, including
percentage will be determined
asset utilization and efficiency,
according to the proportion of
reliability and resiliency, system
eligible expenditures in each stream.
flexibility, and enabling renewable
Final project funding percentages
integration.
will be assessed according to demonstrated need.
total program funds to Indigenous-led
SDLPs may fit under any of the other
projects, which may qualify for greater
three project streams, and they are
Applicants are encouraged to stack
funding.
described as being part of an ongoing
financial assistance from other
Projects must use market-ready technologies and will be expected to demonstrate a commitment to workplace equity, diversity and inclusion. 10 ALBERTA SOLAR REVIEW • 2021
