New Small-Scale Power Producers

Initiating The Process

The first step in becoming a Small-Scale Power Producer (SPP) is to contact the Distribution Facility Owner (DFO) for the service area in which your generating unit will be located. Alberta has several DFOs (see table below). You will need to determine which one operates in your area to discuss connecting as an SSP. The DFO is responsible for taking all necessary steps, including administering applications and agreements, to connect you to the grid and qualify you as a SSP. Additionally, DFOs may have their own specific requirements and fees to formally initiate the connection process and secure your spot in their distribution capacity queue.

Generating Unit Owner’s Contribution (GUOC )

Under the ISO Tariff effective January 1, 2021, the owner of a proposed generating unit or aggregated generating facility with a maximum capability greater than 1 MW is required by the ISO tariff to make a Generating Unit Owner’s Contribution (GUOC). Generator owners may visit the AESO’s GUOC Estimate Calculator to estimate the amount of GUOC that may be required.

Dispatching Services

If your small-scale generating unit’s capacity exceeds 5 MW, then it is considered to be dispatchable. This means that in order to participate in the wholesale market, you must submit offers to the power pool and comply with dispatch instructions issued by the AESO on a 24/7/365 basis. As a qualified SSP, your generating unit or energy storage resource is deemed to have a standing offer of zero dollars per megawatt hour and the cost of your dispatching services will be covered by the AESO (unless you elect to opt out). The AESO will utilize a third-party service provider to deliver these dispatching services and facilitate the SSP’s outage reporting requirements. 

Becoming a Pool Participant

After the DFO qualifies your project as a SSP, but at least four months before your small-scale generating unit is operational, you will need to contact the AESO via email at SSG@aeso.ca to complete the generator onboarding process and get approved as a Pool Participant. Additionally, if your project is greater than 5 MW in capacity, an application for a Preferential Sharing of Records Order from the AUC is required, which the AESO will help facilitate. For all projects regardless of capacity, the SSP should contact the AESO a minimum of four months prior to the planned in‐service date. For further details please refer to Joining the Energy Market.

Financial Settlement

All SSPs will settle directly with the AESO. Generators are encouraged to review ISO Rule 103.4 governing the Power Pool Financial Settlement process and are required to complete and submit the following documents:

• The AESO Request for Banking Information form which must be completed and signed by a corporate officer
• Provide either a void cheque or a signed bank letter confirming the SSP’s account details
  
  For additional information please refer to:
  
  • Current ISO rules 
  • Settlement Guides

AESO Forms & Requirements