ATCO has entered into an agreement with the government of Alberta in Canada on transition payments for the elimination of coal-fired emissions from its coal-fired power plant, the Sheerness Generating Station (Sheerness), on or before 31 December 2030.
ATCO has also agreed to work with the government on the conversion of coal-fired generation to natural gas, the exploration of hydro generation, and the development of Alberta’s new capacity market.
“We are supportive of initiatives to transition the province to cleaner sources of electricity and will continue working with all levels of government on the many interrelated components of Alberta’s electricity system,” said Siegfried Kiefer, Chief Strategy Officer, ATCO Ltd. & Canadian Utilities Limited and President, Canadian Utilities Ltd. “Our focus remains on ensuring these measures support affordable, reliable and sustainable energy for all Albertans.”
As compensation for the capital invested in Sheerness, ATCO will receive cash payments from the government of CAN$4.7 million annually for 14 years, commencing in 2017 and terminating in 2030. Sheerness units 1 and 2 were otherwise scheduled to retire in 2036 and 2040, respectively.
In the near-term, ATCO has reported it will assess the economic viability of converting some of its coal-fired electricity generation to natural gas. In addition, the company has indicated it will work alongside the government in exploring the potential of hydroelectric power as a means to provide reliable, emissions-free baseload generation in the province.
ATCO will also work closely with the government in the development of Alberta’s capacity market to ensure equitable treatment and a level playing field for both existing and new electricity generation.
Read the article online at: https://www.worldcoal.com/power/28112016/atco-firming-its-transition-away-from-coal-in-canada/