Geothermal Project in Saskatchewan selected under utility green options program
Saskatchewan based Deep Earth Energy Production Corp. announces its 5MW geothermal power project in Saskatoon, Saskatchewan has been selected in the provincial utility SaskPower's Green Options Partners lottery.
In a significant milestone for the company, so the announcement by Saskatoon, Saskatchewan based geothermal developer DEEP Earth Energy Production Corp., the company’s application for a 5 MW geothermal project located in Southeast Saskatchewan was selected by the provincial utility SaskPower for its Green Options Partners lottery.
This is also a great step forward for development of geothermal energy projects in Canada, as it adds another province with an actual geothermal power project to Canada.
This is significant for the company, as it can now accurately forecast its future revenue stream from power generation. This announcement is also very timely as it will assist in capital raising efforts for initial geothermal drilling, expected to commence this winter. As the Green Options Partners Program lottery selections occur each year, DEEP will be applying for increased power allocation in the future.
The SaskPower’s Green Options Partners Program lottery is held each year. It streamlines power purchasing for small and medium-sized “clean power” producers that sell between 100 kilowatts (kW) and 10 megawatts (MW) of electricity, by providing a fixed price for all power produced under the contract. Payment per Megawatt-hour (MWh) depends on the target commercial operation date and the actual commercial operation date. The energy tariff for 2012 is $98.02/MWh and increases at rate of 2% per year over the term of the contract.
SaskPower has posted the names of all 13 projects totaling 46 megawatts and project generalities of all of the selected applicants on their website. Projects also include Wind, Flare gas, Landfill, Turbo Expander and Hydro. The program offers increased stability to clean power producers as the energy tariff rates are the same for peak and off-peak generation. Power rates are the same for all power production technologies and guaranteed even if the program is cancelled or altered.”
Source: Company announcement via e-mail