Say Hello To Capital Power
Capital Power is a growth-oriented power producer committed to net zero operations by 2045. They deliver responsible power across North America through the development, acquisition, ownership, and safe operation of power generation facilities. Power Purchase Agreements (PPAs) are an important part of their business, allowing them to sell power in a variety of ways and build long-term relationships with customers. PPAs are bilateral commercial agreements where the buyer purchases electricity directly from the seller. PPAs can be a more economical and flexible option for buyers, especially in deregulated power markets. PPAs can also include the purchase and sale of carbon credits, such as Renewable Energy Certificates (RECs), which allow companies to claim that their operations are powered by green or carbon-neutral sources.
With a commitment to achieving net-zero operations by 2045, Capital Power is lighting the way across North America using a variety of power generation facilities, including renewable sources like solar and wind, alongside thermal energy sources such as natural gas. Saric shared exciting updates about their extensive portfolio, showcasing projects delivering an impressive 9,300 megawatts of power generation at 32 facilities. Central to their strategy is the use of Power Purchase Agreements (PPAs) that promise to usher in a future of reliable and affordable power.
Decoding Power Purchase Agreements (PPAs)
A deep dive into the conversation reveals the relevance of PPAs to Capital Power’s business model. Sitting at the intersection of solution and strategy, PPAs are optimizing the company’s role in the deregulated Alberta power market, enabling them to sell power through diverse avenues, including spot markets and forward markets. These agreements are carving out win-win scenarios for both Capital Power and its customers, churning out competitively priced contracts that guarantee electricity and renewable properties for long hauls.
Carbon Credits and Renewable Energy Certificates (RECs)
The podcast features a comprehensive breakdown of the significance of Renewable Energy Certificates (RECs) and carbon credits to eco-conscious companies. Saric demystifies these concepts, shedding light on their creation, purchase, and retirement as tools for offsetting carbon emissions. She elaborates on how these environmental attributes can be seamlessly coupled with PPAs to help companies achieve their sustainability targets.
Incorporating Indigenous Community Participation in Decarbonization
A key highlight of the podcast is the emphasis on Indigenous communities’ involvement in decarbonization efforts through PPAs. Saric maps out the different avenues for participation available to Indigenous communities, whether it’s developing renewable projects on traditional lands, partnering with energy developers, or equity participation. She also underscores the importance of contractual arrangements within PPAs, which can offer benefits such as job creation and revenue sharing. Indigenous communities can participate in decarbonization through PPAs by developing their own renewable projects, partnering with existing developers, or entering into commercial arrangements. PPAs can help entities fulfill their ESG requirements by providing zero-carbon electricity, ensuring responsible procurement, and promoting community engagement.
ESG Considerations in Power Purchase Agreements
Finally, the discussion circles back to a sweeping look at how PPAs can help companies meet their Environmental, Social, and Governance (ESG) commitments. Saric sketches out the environmental benefits of renewable PPAs and gives an overview of the social and governance elements that can be woven into PPA contracts. She underlines the potential of PPAs as tools for companies to optimize operations, financial outcomes, and ESG goals in the energy transition.
Capital Power is a clear example of a company that is not waiting for the future, but creating it. Through strategies like PPAs, Carbon Credits, and RECs, the company is not only promising a future of consistent, competitively priced power but also a future that is both socially equitable and environmentally sustainable. The energy sector’s path to a greener future is being paved by visionaries like Capital Power, making the energy transition a reality.
Watch new episodes of the Reimagined Energy Podcast every week by visiting our website, find episodes on our YouTube Channel, or wherever you listen to podcasts.
Subscribe 📩
Receive a weekly email when a new episode is launched.Â
