(Rendering of Yellow Lake solar farm via BluEarth Renewables.)
One of Canada’s biggest banks is aiming to reduce its greenhouse gas emissions by 70% and increase sourcing of renewable and non-emitting electricity to 100% within the next five years and it is turning to an independent power producer from Alberta to help make it happen.
This week,
BluEarth Renewables, along with
Spark PowerGroup Inc. (TSX: SPG) company
Bullfrog Power announced that they had signed a power purchase agreement (PPA) to construct a new
utility-scale solar project designed by BluEarth, who will begin construction next month.
This 39 MW
AC Burdett and Yellow Lake Solar Project is located southwest of Medicine Hat, in the County of Forty Mile in Alberta. Some of the best solar and wind resource in Canada can be found in the province and cost trendlines for these technologies continue to move downward.
Adding to this benefit, is the province’s deregulated electricity market, which provides corporations the means to select and procure energy products that meet their needs directly from generators. All told, it would make Alberta a top jurisdiction for renewable energy investment and growth.
This is where
Royal Bank Canada (TSX: RY) comes in. A leading financial institution in not just Canada, but the world, RBC has become the first Canadian bank to sign
a long-term renewable energy PPA of this nature that will directly support the construction of these two new utility-scale solar farms.
This project also offers a lot of benefit for the province of Alberta. For example, it is anticipated to inject more than $70 million of capital investment into the provincial economy and create 300+ jobs during construction. On top of that, it is expected to satisfy the local electricity load requirement and produce enough renewable energy to power approximately 6,400 homes annually, while also support the grid requirements during high demand / peak hours.
“BluEarth is a great home-grown Alberta success story, and I am thrilled they are once again making a major investment here in their own backyard and in my riding,” - MLA for Taber-Warner, Hon. Grant Hunter.
Upon the release of this news, Bullfrog Power President Sean Drygas stated that power purchase agreements such as this one, are the most effective way to expand renewable energy in Canada.
“We're excited to secure a predictable, economic supply of renewable energy attributes from the Burdett and Yellow Lake Solar Project. As we continue to advise our clients on signing their own PPAs, nothing shows our belief in their value more than signing our own.”
The PPA is effective April 2021 and commercial operations are expected to commence at that time.
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