We plan to add up to 3,000 megawatts (MW) of solar and wind generation to the power system by 2035. To do this, we need the help of Independent Power Producers (IPPs).
What is an IPP?
An IPP is a company separate from SaskPower. We select them to develop, construct, own, operate and maintain wind or solar power facilities. The IPP then sells the power generated back to us.
We know many companies have experience building and operating wind and solar facilities. When we partner with these companies, we’re able to use their expertise and secure a better price for our customers.
How We Choose an IPP
We typically select IPPs for specific projects through a competitive procurement process. We post these opportunities on SaskTenders.ca and Merx.com.
We pick the proposal that best meets the requirements of the project. To complete the process, the successful IPP must sign a Power Purchase Agreement (PPA).
Each PPA includes:
- a commitment from the IPP that they’ll plan, develop, finance, construct, own, operate, maintain and decommission the facility. This also includes cleaning up the site after the facility is no longer operating. They must follow all our requirements and all local, provincial and federal laws.
- a fixed purchase price that ensures we’re getting power at a cost-effective price.
- requirements on how the facility is designed and operated to maintain the safety and reliability of the power system.
- Indigenous ownership and participation requirements for the IPP. This provides more opportunity for Indigenous companies to take part in generating power, and it reinforces our commitment to economic reconciliation.
Commitment to Engage
Community engagement is very important. We ask every IPP to explain how they’ll engage with communities if they’re chosen for a project. We measure the strength of each community engagement strategy based on:
- how they’ll share project information with Rightsholders, municipal authorities and other key stakeholders
- how they’ll proactively ask for feedback
- how they’ll work with communities to acknowledge concerns and reduce impacts
IPPs and Landowners
The relationships between IPP and landowner is very important. For any project to happen, the IPP needs to first secure land.
To prepare their proposals, developers will seek land options for what land they’ll need for their project. Once an IPP is selected, only a small portion of the land options will end up being developed for wind projects. Many farming activities can continue around the wind turbines as only small amounts of land are taken up for access roads and easements. Solar facilities typically use more of the land that is optioned but they take up a smaller area overall compared to wind projects.
Typically, IPP agreements allow landowners to sell or transfer the title of their land. But it’s important for landowners to discuss this with the IPP before signing an agreement.
