With turbines from the Burchill Wind Project targetted to be up and running by the end of this year, Saint John Energy’s offering of renewable energy certificates Tuesday marked the utility’s first foray into what has been described as “the currency of the renewable energy market.”
A Renewable Energy Certificate, (or REC), is a recognized way to track solar, wind, and other green energy sources as they flow into the electricity grid.
As renewable power mixes with electricity generated by other means, RECs were designed as a way of tracking how much of that power comes from renewable energy.
The internationally recognized certificates help energy buyers achieve net-zero greenhouse gas emissions by certifying that they are buying electricity from a renewable source.
When the Burchill Wind Project is complete, Saint John Energy will have enough green electricity to offer up to 150,000 RECs a year.
Ryan Mitchell, Saint John Energy’s President and CEO confirms that’s just from the Burchill project alone, adding future renewable energy projects could enhance that offering.
“We would look to, in the future, hopefully, add additional renewable energy to the system, then that would provide increased access to renewable energy certificates,” Mitchell told Huddle. “We would look to hopefully, leverage to benefit the community and support the transition toward net zero.”
The Burchill Wind Project in Saint John is on track to be completed in late 2022. Image: Tamara Steele.
Burchill, a 42-megawatt wind farm being built by Natural Forces in Lorneville, is set to be operational by the end of 2022.
Upon completion, the site’s 10 turbines are expected to generate enough renewable energy to power about 15 per cent of Saint John, roughly two-and-a-half times the renewable energy target of six per cent the utility was challenged to provide under the City of Saint John’s Community Energy Plan by 2025.
That will allow both Saint John Energy and the City of Saint John to certify all their corporate electricity supply as being from renewable energy while still leaving what the utility describes as, “an abundant supply for others in the city looking for green electricity.”
Two companies already on board
Earlier this year, the utility issued a public request for proposals seeking local organizations that would be interested in purchasing RECs to correspond with the electricity that Saint John Energy supplies to them.
During the process, Port Saint John and Irving Oil expressed interest in purchasing RECs from Saint John Energy
Irving had previously announced sustainability goals targeting a 30 percent reduction in its greenhouse gas emissions by 2030, and in support of achieving net-zero emissions by 2050.
With those ambitious targets in mind, it’s no wonder the company’s investment will also make it the largest purchaser of the RECs provided by Saint John Energy through the Burchill Wind Project.
Andy Carson, Director, Energy Transition with Irving Oil says purchasing RECs allows the company to have a certified renewable electricity supply from Saint John Energy once Burchill comes online later this year.
“What we’ve done as part of this RFP, is match the number of RECs that we’ve bid for, to the energy demand of all of the properties that we have here in the city of Saint John that are currently supplied by Saint John energy,” he told Huddle.
Carson adds that’s enough to decarbonize all of the electricity supplied into Irving Oil’s operation by Saint John Energy, transitioning more than 30 of its properties within the city to wind energy.
The company also noted that does not include the Saint John refinery, which does not acquire power from Saint John Energy.
Irving Oil’s home office in uptown Saint John, the Irving Blending & Packaging facility and the company’s East Saint John Terminal on Courtenay Bay will be among the properties to run on the wind power provided.
“You know, I’m speaking today from our home office building in uptown Saint John and it’s pretty crazy to think about not too far down the road here in 2022, where I can come into my office, turn on my computer, make a coffee and know that the electricity powering all of those tools that I use every day are being sourced one hundred percent by green power,” said Carson.
Port Saint John purchased enough RECs to cover 100 percent of its corporate energy use, including the Port’s cruise facilities, corporate office locations, and port-operated cargo terminals.
“These RECs are an amazing first step for us but we are committed to further reducing our energy footprint in the near future when it comes to our facilities and fleets,” said Craig Bell Estabrooks, President and CEO at Port Saint John.
He says the Port has a larger decarbonization journey, with an internal working group already focused on reducing its own greenhouse gas emissions.
Potential for businesses and homeowners
Under its agreement with Natural Forces, Saint John Energy will receive all the energy produced from Burchill for at least 25 years, as well as the RECs associated with the electricity the wind farm generates.
Mitchell, says after allocating the renewable energy certificates to accommodate the City, Saint John Energy and also Irving Oil and Port SJ, approximately 60,000 megawatt hours of renewable energy certificates will remain.
The utility adds others will be able to purchase the certificates to help them reach their net-zero goals with the expectation that the initial offering will attract further interest from local businesses looking to support both the environment and the development of renewable energy by purchasing RECs.
Mitchell says Saint John Energy is also looking to gauge the interest of homeowners in certifying their electricity as renewable.
He adds the utility isn’t disclosing the specific prices paid by purchasers, calling it “a competitive market.” He says Saint John Energy will have additional renewable energy certificates available that it will be looking to make a decision on later this year.
He confirmed when they issued the request for proposals seeking interest in RECs, they set a minimum price of $10 per MWh.
“If you would consume one megawatt hour of electricity, then generally you would look to purchase the equivalent amount and match it in terms of renewable energy certificates, said Mitchell. “And it’s through that approach that you can say your energy is powered by a local green renewable energy source.”
“We have a pretty good understanding of what they value and they would command in the province as well as outside of the province because there was interest there as well,” he added.
For the 60,000 MWh remaining, Mitchell hopes to see a further assessment of the residential market’s interest with a possibility of opening up another request for proposal later this fall in Saint John.
Beyond an RFP, Mitchell says Saint John Energy could bank remaining RECs for the future, or look to market them outside the province.
Michell believes the primary focus is on keeping the renewable energy certificates for the benefit of local businesses and customers in Saint John that want to support the energy transition.
Saint John Energy will share the RECs revenue with the city as well as any revenue raised from their sale, with the utility planning to leverage revenue to maintain stable rates and high reliability for customers and continued opportunities to green its grid.
Tyler Mclean is a reporter for Huddle, an Acadia Broadcasting content partner.
