We’re offering the Flare Gas Power Generation program to support small- to medium-sized oil producers who want to develop environmentally preferred flare gas generation projects.
We’ll accept up to 20 MW of projects into the program. Once this limit is reached, the program will be put on hold to review its effectiveness and to determine our ability to accept additional projects.
The program has been designed in consideration of the Ministry of Energy and Resources' Directive S-10, Saskatchewan Upstream Petroleum Industry Associated Gas Conservation Directive. It allows the use of gas, which would otherwise be flared to the environment, to generate electricity.
The program offers standard 20-year contracts for power generation projects with a nameplate capacity over 100 kilowatts (kW) and up to one megawatt (MW) that are within the SaskPower franchise area.
Producers with potential projects associated with facilities greater than one MW, can contact SaskPower Supply Development to discuss other opportunities to generate electricity for sale to SaskPower. Producers with projects smaller than 100 kW can look at our Small Power Producers Program or Net Metering Program for alternate opportunities.
Cost and Purchase Rates
A fee of $1,725 plus GST is required to participate in the program and must be submitted with your application. We will perform a study to determine how much it will cost to interconnect your project to our system and will provide you with an estimate. Once the project is complete, you will pay the actual cost to interconnect your project.
The initial contract base rate, assuming the project starts generating power in 2017, is $41.28/MWh. Payment will escalate annually at a rate of two per cent.
Energy tariff rates are the same for peak- and off-peak generation and are guaranteed even if the program is cancelled or altered.
How to Participate
To get started, read over the Flare Gas Power Generation Program Rules, and review the Flare Gas Power Generation Program Process Flowchart and Draft Proforma Flare Gas Generation Agreement. Once you are ready to apply, fill out and submit the Flare Gas Power Generation Application Form. You will be contacted about your application once it is received.
We’re committed to periodic reviews of this program. These reviews will include payment and escalation rates, the size of eligible projects and other aspects of the program.
Any changes made to the program will only affect future contracts. Contracts that have been signed prior to any changes will be bound by the rates, terms and conditions agreed to in the contract at the time it was executed.