Grid Modernization Project Applicant Guide - Smart Renewables and Electrification Pathways Program (SREPs)

• I) Disclaimer
• II) Introduction
• III) Expected Outcomes

1. Eligibility and Funding Limits
   1. 1.1. Eligible Recipients
   2. 1.2. Eligible and Ineligible Expenses
      1. 1.2.1 Eligible Expenditures
      2. 1.2.2. Non-Admissible Expenditures
   3. 1.3. Eligible Grid Modernization Projects
   4. 1.4. Grid Modernization Stream Eligibility
      1. 1.4.1. Non-Grid Modernization Project Components
   5. 1.5. Additional Program Requirements
      1. 1.5.1. Indigenous Engagement Requirement
      2. 1.5.2. Equity, Diversity and Inclusion (EDI) Requirement
      3. 1.5.3. Grid Services Requirement
      4. 1.5.4. Cyber Security Requirement
   6. 1.6. Funding Limits
      1. 1.6.1. Program Funding Limits and Funding Period
      2. 1.6.2. Indigenous-Owned Project Funding Limits
      3. 1.6.3. Stacking of Assistance
2. Application and Program Process
   1. 2.1. Project Registration
   2. 2.2. Technical and Financial Application Submission and Review Process
   3. 2.3. Project Approval
   4. 2.4. Contribution Agreement Negotiation
   5. 2.5. Service Standards
   6. 2.6. Confidentiality and Security of Information
   7. 2.7. Program Inquiries
3. Preparing an Application
   1. 3.1. Registration
   2. 3.2. Technical and Financial Project Application
      • Overview
      • A1 – Applicant Information
      • A2 – Project Information
      • A3 – Project Timeline
      • A4 – Project Risk
      • S1 – Indigenous Engagement
      • S2 – Indigenous Ownership
      • S3 – Equity, Diversity and Inclusion
        • Option 1: Equity, Diversity and Inclusion Plan
        • Option 2: Public Commitment
      • R1 – Regulatory Approvals and Permits
      • R2 – Land Access Rights
      • R3 – Environmental Assessments
      • F1 – Financial Application Form
      • F2 – Financial Statements
      • F3 – Confirmation of Financing
      • F4 – Funding from Other Levels of Government
      • F5 – Energy or Service Sale Agreements
      • T1 – Energy Resource Assessment and/or Feasibility Studies
      • T2 – Technical Characteristics
      • T3 – Cyber Security
      • T4 – System Design
      • T5 – Grid Services
        • T5.1 Grid Modernization Projects
        • T5.2 Energy Storage and Non-Grid Modernization Technologies
      • T6 – GHG Reductions
4. Payment Processing (only for Approved Projects)
   1. 4.1. Basis and Timing of Payment
   2. 4.2. Reporting Requirements
      1. 4.2.1 Outcome Reporting
   3. 4.3. Repayability
   4. 4.4. Audits
   5. 4.5. Other Program Terms and Conditions
      1. 4.5.1 Intellectual Property
      2. 4.5.2 Regulatory and Legal Requirements
      3. 4.5.3 Other Conditions
5. Definitions

Natural Resources Canada (NRCan) reserves the right to alter any application process, eligible funding amounts, apply regional or technology stream funding limits, or cancel any application process at its sole discretion.

The program has authority to create funding reserves to support priority projects in coal-generating provinces in coordination with provincial governments and crown corporations and will ensure Indigenous-led projects are prioritized.

Program updates will be communicated regularly on the NRCan website

Any costs incurred for the submission of the Project Application are at the Applicant’s own risk and cannot be considered as part of the Total Project Costs.

Until a written contribution agreement is signed by both parties, no commitment or obligation exists on the part of NRCan to make a financial contribution to any project, including any expenditure incurred or paid prior to the signing of such a contribution agreement.

NRCan is offering funding to support smart renewable energy and electrical grid modernization deployment projects. As coal-fired electricity generation units are phased out due to provincial and federal regulations, the Smart Renewables and Electrification Pathways Program (SREPs) will support coal’s replacement with renewable solutions able to meet increased energy needs and provide grid services to the electricity grid.

SREPs aims to reduce greenhouse gas (GHG) emissions to meet Canada’s 2030 targets and beyond by supporting the transition towards electrification through these renewable energy projects and the transformation of the Canadian electricity grid. In addition, SREPs will decrease barriers to participation for those underrepresented in the energy sector, including but not limited to women, 2SLGBTQ+ people, Indigenous peoples, racialized communities and persons with disabilities.

Grid modernization projects funded under SREPs must contribute to the following mandatory outcomes, and may contribute to the following desired outcomes.

Mandatory outcomes:

• Decrease greenhouse gas emissions from Canada’s electricity system;
• Generate economic and social benefits, including job creation and increased equity, diversity and inclusion in the energy sector;
• Increase renewable energy capacity or increase electrical grid accommodation of renewable energy;
• Contribute to modernization and decarbonization of the grid through improved asset utilisation and increased efficiency, increased reliability and resiliency, or increased system flexibility and renewable energy penetration; and
• Support the active integration and utilization of grid modernization projects in operational and decision making processes;

Desired outcomes, where applicable:

• Increase meaningful Indigenous ownership of, and benefits from, renewable energy and grid modernization projects.

1.1 Eligible Recipients

Eligible recipients are the owners of Eligible Projects and may include:

• Legal entities validly incorporated or registered in Canada;
• Provincial, territorial, regional and municipal governments and their departments and agencies;
• Indigenous communities and governments, Tribal Councils, National and regional Indigenous councils or organizations, and Indigenous for-profit and not-for-profit organizations. (The term “Indigenous” is understood to include Inuit, Métis, First Nation, Status Indian and non-Status Indian individuals, or any combination thereof.)

1.2 Eligible and Ineligible Expenses

1.2.1 Eligible Expenditures

The program will reimburse a portion of Eligible Expenditures incurred that are directly related to, and necessary for, the implementation of a Project, which include:

• Salaries and benefits for employees on the payroll of the Recipient, including parental leave benefits, accommodations and accessibility costs;
• Professional, scientific, technical and contracting services;
• Equipment expenditures;
• Travel costs necessary for the delivery of the Project, including meals and accommodation, based on National Joint Council Rates.
• GST, PST or HST, net of any tax rebate to which the Recipient is entitled;
• Other expenses, including:
  • Printing services and translation;
  • Data collection services, including processing, analysis and management;
  • Construction insurance;
  • Accreditation;
  • Licence fees and permits;
  • Capacity building and training.
  • Where the Recipient is an Indigenous organization or distributing funding to Indigenous organizations, other expenses may include honoraria and costs associated with an Indigenous ceremony.
  • Overhead expenses, provided they are directly related to the conduct of the Project and can be attributed to it. Overhead expenditures can be included in the Total Project Costs up to a maximum of 15% of eligible expenditures.

Costs ineligible for reimbursement from the program (but permitted as part of the Recipient’s portion of the Total Project Costs) include:

• The reimbursable portion of Federal and Provincial Taxes;
• In-kind costs; and
• Legal costs related to notarization requirements.

1.2.2 Non-Admissible Expenditures

The program will not reimburse any portion of the following costs, nor will it consider the following costs towards Total Project Costs:

• Land acquisition costs and associated real estate fees;
• Costs of leasing land, buildings and other facilities;
• Legal costs;
• Project Application preparation costs;
• Tax preparation costs;
• Financing charges and interest payments on Project loans;
• Costs that cannot be deemed necessary for the implementation of the Project;
• Salary benefits and incentives deemed unrelated to the Project (e.g., employee bonuses);
• All costs associated with the protection of Intellectual Property;
• Fossil fuel generation equipment;
• Costs incurred before the Project Approval notification date, or after the Project Completion Date or March 31, 2029, whichever is earlier.

1.3 Eligible Grid Modernization Projects

Eligible Grid Modernization Projects funded under SREPs are expected to be at a sufficiently advanced stage of development (i.e., ready to begin construction or installation), must be located in Canada and must provide benefits to the Canadian electricity/energy system. The program defines sufficiently advanced as projects that successfully meet all program criteria, as outlined in Section 3.

Eligible Grid Modernization Projects must also support at least one of the following activities:

• Permanent installation of proven commercial technologies with the intent that all equipment continues to operate in its designed environment for the entirety of the Project’s life;
• Modification of existing processes, operating procedures, equipment or systems for commercial operations, to accommodate and utilize modern renewable technologies and grid operations.

Eligible Grid Modernization Projects under SREPs include, but are not limited to the following project types:

Ineligible Projects for SREPs include, but are not limited to:

• Demonstration projects;
• Single technology deployments, including but not limited to, transmission only projects and smart meter projects without additional integration/utilization components;
• Renewable fuel production projects, including hydrogen generation;
• Non-organic waste to power;
• Technologies below Technical Readiness Level 8.

For more information on technology readiness levels, please visit Innovation, Science and Economic Development Canada.

1.4 Grid Modernization Stream Eligibility

Eligible projects must meet all the associated requirements of the assigned program stream.

This section focuses only on the eligibility requirements for the Grid Modernization stream. Eligibility requirements for the Established Renewables and Emerging Technologies streams can be found in the Generation and Storage Applicant Guide.

Eligible grid modernization projects include technologies and processes necessary to accommodate the current widespread changes in the electricity system, and the additional changes necessary to achieve a decarbonized electricity system.

Figure 1 below provides example application areas of grid modernization technologies but is not exhaustive. Please note that some of the application areas included are still within the innovation space at Technology Readiness Levels below 8 and would therefore be ineligible. Example application areas are organized into three categories. Starting from the bottom of Figure 1, “Foundational Smart Grid Systems” represents traditional technologies and control systems used to operate the bulk power grid. "Key Smart Grid Technologies and Applications” identifies various advancements that can be made to improve the operation and management of existing grids. Lastly, “Advanced Smart Grid Technologies and Applications” identifies the long-term potential of grid modernization deployment projects as operators gain experience with new technology capabilities and applications.

Figure 1: Smart Grid Technologies and Application Levels (2020-2021 Smart Grid in Canada Report)

In addition, the following requirements must be met for specific project types:

• For hardware or software retrofits to an existing renewable energy or energy storage project, the existing energy project must have a capacity of 1 MW (AC) or more;
  • For Indigenous-owned retrofit projects, the existing energy project must have a capacity of 250 kW (AC) or more;
• For software or hardware to enable aggregating Distributed Energy Resources (DERs) in a virtual power plant, the aggregate non-emitting capacity must be 500 kW (AC) or more;
• For microgrid projects including software or hardware to enable microgrid control or other new generation and/or storage technologies, the aggregate non-emitting capacity must be 500 kW (AC) or more;
• For grid modernization energy storage projects, the energy storage project must have a capacity of 1 MW (AC) or more;
  • For Indigenous-led grid modernization energy storage projects, the energy storage project must have a capacity of 250 kW (AC) or more.

1.4.1 Non-Grid Modernization Project Components

Established renewables and emerging technologies can be included in a grid modernization project if they are an essential component of the project; however, the primary grid modernization component must satisfy the applicable requirements. Non-grid modernization components will be funded according to the specified funding percentage in Section 1.6 as part of a hybrid project. In addition, non-grid modernization components must meet their applicable requirements included in the Generation and Storage Applicant Guide, such as grid service capability requirements.

For any questions regarding the eligible inclusion of non-grid modernization project components, please contact the program team for guidance by email sreps-erite@nrcan-rncan.gc.ca.

1.5 Additional Program Requirements

1.5.1 Indigenous Engagement Requirement

Program Intention: SREPs is seeking projects and applicants that proactively engage with Indigenous groups as part of the project planning to deliver local community benefits (e.g., improved air quality, job creation). Projects which are not expected to impact Indigenous communities should, at a minimum, confirm there are no objections from Indigenous communities directly or indirectly impacted by the project as planned and that all appropriate parties have been engaged. Projects must also demonstrate they meet all Provincial or Territorial Indigenous consultation requirements.

Applicants are requested to demonstrate proactive, ongoing and meaningful engagement with any and all relevant Indigenous communities, or SREPs funding may be withheld.

In addition to the Applicant’s responsibilities, NRCan has a Duty to Consult with Indigenous groups when a contemplated Crown conduct, such as the provision of funding or the issuance of permits, may have an adverse impact on existing or potential Aboriginal or Treaty rights. The Aboriginal and Treaty Rights Information System will be used to assess Consultation requirements and to identify Indigenous groups that may be impacted by proposed projects. The federal government will then follow up as appropriate.

Further details on the Indigenous engagement requirement, including excemptions, are available in criteria S2 Indigenous Engagement.

1.5.2 Equity, Diversity and Inclusion (EDI) Requirement

Program Intention: NRCan recognizes the importance of a diverse and inclusive workforce to the resilience of Canada’s energy sector. SREPs aims to advance the participation of multiple underrepresented groups in Canada’s energy sector, including but not limited to women; 2SLGBTQ+ persons; First Nations, Inuit and Métis peoples; racialized people; youth and persons with disabilities.

SREPs requires recipients to either provide Equity, Diversity and Inclusion Plans for their organization or participate in a public commitment. Activities for fulfilling the commitment or EDI plan could include reporting on progress, gathering relevant data, promoting the renewable and energy sector as a post-secondary option, and promoting workforce diversity and inclusion through collaboration.

Further details about this requirement are available in criteria S3 Equity, Diversity and Inclusion.

1.5.3 Grid Services Requirement

Program Intention: Grid modernization projects can include a wide range of technologies and achieve diverse outcomes and benefits to support electrification of end uses and decarbonisation of the electricity system. SREPs aims to ensure that applicants can identify and address their own specific needs with grid modernization projects, while ensuring that projects are actively integrated into and used in electricity system decision making and operational processes.

Applicants will be required to identify expected impacts, outputs and outcomes of their project in the categories of improved asset utilisation and increased efficiency, increased reliability and resiliency, or increased system flexibility and renewable energy penetration. A description of how the project will be actively integrated into and used will be required for identified outcome areas. For non-utility applicants, a letter of support from the applicable utility detailing how the project capabilities will be used is required. The purpose of the requirement for integration into operational processes is to ensure that SREPs is supporting projects achieving meaningful outcomes and benefits within the specific project scope, rather than acting solely as an enabler for future projects to achieve those outcomes.

Further details on this requirement are available in Section 3.2 (T5).

1.5.4 Cyber Security Requirement

Program Intention: NRCan aims to improve awareness and use of cyber security best practices in Canada’s electricity sector. The program is seeking projects which contribute to a more resilient infrastructure through continual maintenance and enhancement of cyber security over the Project’s life cycle.

Applicants will be expected to demonstrate how their organization will make use of cyber security-related controls, standards and tools, prioritizing actions and investments to maintain or enhance the organization’s cyber security posture. Applicants will be required to complete the Canadian Cyber Security Tool (CCST), a virtual self-assessment of their organization’s operational resilience and cyber security posture, and summarize the results. Additionally, applicants will be asked to share cyber security lessons learned as part of their final report.

Further details on this requirement are provided in criteria T3 Cyber Security.

1.6 Funding Limits

1.6.1 Program Funding Limits and Funding Period

Once approved, projects will be eligible for funding from the date of Project Approval until the Project Commissioning Date or March 31, 2029; whichever is earlier.

See Section 4 for more details on the timing and processing of payments.

The maximum eligible funding, as a percentage of Total Project Costs, is determined based on program stream, per the table below.

1.6.2 Indigenous-Owned Project Funding Limits

Understanding that First Nations, Inuit, and Métis partners experience unique barriers to participating in the energy transition, SREPs aims to enable and encourage their participation by providing greater funding percentages, as well as supporting smaller-sized projects.

In order to support Indigenous Recipients and projects that provide economic and social benefits to Indigenous communities, projects are eligible for funding based on the table below.

Indigenous-owned projects will be eligible for funding as determined per the table above (superseding the stream-specific funding levels).

1.6.3 Stacking of Assistance

In general, collaboration and financial leveraging from other sources is strongly encouraged for all SREPs streams. Applications submitted under SREPs may be shared with other government funding programs to which those applications may be better suited.

Prior to signing a contribution agreement and upon Project Completion, the Applicant will be required to disclose all funding sources (Canadian and non-Canadian) for the Project, including industry sources, approved in-kind funding, and contributions from other Canadian government sources (federal, provincial/territorial and municipal).

In the event that actual total government assistance to a Recipient exceeds the eligible expenditures, NRCan will adjust its level of funding and if necessary, seek reimbursement (see Section 4.3: Repayability).

The application process involves the following steps:

2.1 Project Registrations

To formally begin applying for SREPs, Applicants are asked to submit a completed Project Registration Form, as outlined in Section 3.1. Upon receipt of the registration form the program team will confirm the eligibility of the proposed project and identify which program stream it is eligible for. Once a registration is approved, the Technical and Financial Application will be made available for completion in Integro.

Reach out to the program inbox (sreps-erite@nrcan-rncan.gc.ca) if a paper copy of the application is required for accessibility purposes.

2.2 Technical and Financial Application Submission and Review Process

The Technical and Financial Application is used to:

• Confirm all approved projects are at a sufficiently advanced stage of planning and development – “shovel-ready”;
• Ensure all program requirements are met (e.g., Grid Services, EDI, confirmation of financing, etc.); and
• Collect information required for the contribution agreement.

The program will evaluate Technical and Financial Project Applications in the order they are received, provided:

1. The application is complete; and
2. Funds are available that the Project may be eligible for under a contribution agreement.

Applicants must meet the criteria requirements outlined in Section 3 as applicable to their Project.

2.3 Project Approval

The approval process is based on the date the applicant has submit an application that has met all the criteria requirements which demonstrate the project is “shovel-ready”.

Upon a positive review of the Technical and Financial Project Application, and subject to all other SREPs conditions, including availability of funds, the program will seek necessary approvals to fund the Project. Once approval has been obtained, NRCan will proceed to negotiate and sign a contribution agreement with the Applicant.

2.4 Contribution Agreement Negotiation

The Contribution Agreement, the legal agreement that outlines the funding obligations, is the last step in the approval process. Any funding under this entire submission, review and assessment process will be contingent upon the execution of a contribution agreement. Until a written contribution agreement is signed by both parties, no commitment or obligation exists on the part of NRCan to make a financial contribution to any Project, including any expenditure incurred or paid prior to the signing of such a contribution agreement.

2.5 Service Standards

NRCan maintains a suite of service standards on the expected timelines for each phase of program delivery. The purpose of these service standards is to clarify for applicants when funding is available, the timeline for reviews, and when announcements will be made regarding any remaining funds.

The key service standards for this program are as follows:

2.6 Confidentiality and Security of Information

Paragraph 20(1) of the Access to Information Act prohibits a government institution, including NRCan, from disclosing any information—financial, commercial, scientific or technical—supplied by a Project Applicant to NRCan so long as the Project Applicant treats the information as confidential in their own establishment.

Accordingly, NRCan will protect the Applicant’s confidential information in its possession to the same extent as the Applicant protects said confidential information in their own establishment. NRCan will use email correspondence to the Applicant for all non-confidential matters.

NRCan recognizes that email is not a secure means of communication, and NRCan cannot guarantee the security of confidential information sent via email while it is in transit. Nonetheless, Applicants who regularly use email to communicate confidential information within their own organizations may choose to submit their documentation packages by email to: sreps-erite@nrcan-rncan.gc.ca

For more information on this subject, please refer to Section 20 of the Access to Information Act.

2.7 Program Inquiries

To ensure that all Applicants have access to the same information and that there is a written response to every question, all questions and answers will be sent and received via the program email: sreps-erite@nrcan-rncan.gc.ca

4.1 Basis and Timing of Payment

Payments will be made based on evidence of Eligible Expenditures incurred on a regular basis (e.g., quarterly), upon receipt of the documentation as defined in the contribution agreement. The total amount of contribution funding paid to a Recipient under a funding agreement is not to exceed the Eligible Expenditures actually incurred by the Recipient.

Retroactivity

Recipients will be allowed to incur Eligible Expenditures, at their own risk, from the date that Project Approval has been provided by the program to the date of contribution agreement signing within a given fiscal year, to a maximum of 30% of the program’s contribution.

Holdbacks

In order to ensure appropriate Project oversight, a holdback amount, based on Project and Applicant risk, may be applied to each payment. The holdback will not be released until progress to meet all requirements outlined in the contribution agreement is deemed acceptable to NRCan.

Advance Payments

Regular advance payments may be permitted, where requested by the Applicant, and based on an assessment of their need, risk levels and cash flow requirements.

Method of Payment for Indigenous Recipients

Where it is deemed by Canada as advantageous to the success of the Project, Natural Resources Canada shall offer fixed or flexible contribution funding approaches for contributions to Indigenous Recipients.

4.2 Reporting Requirements

The Recipient will submit the following on a regular basis (e.g., quarterly) using the templates provided by the program:

• An expense report signed by the Chief Financial Officer or Duly Authorized Officer of the organization which outlines Eligible Expenditures incurred;
• An updated Project cash flow statement and/or budget for the upcoming quarter;
• An update on Project activities that includes tasks completed and expected in the next quarter, and any Project-related issues and how they are being addressed.

At the end of the Project, the Recipient will submit:

• A financial report on how the Contribution was spent, including a declaration as to the total amount of contributions or payments (including in-kind) received by the Recipient from other sources in respect to the Project and certification that the claims for payment of Eligible Expenditures have been incurred and paid by the Recipient;
• A narrative report to describe how Project activities have contributed to the achievement of the objectives, benefits and key performance measures of the Project, including the results of the Project in comparison to the original deliverables and work plan, with explanations of any deviations;
• Where applicable, a commissioning report signed by a professional engineer or duly authorized officer, indicating the date of commissioning.

For five years following Project commissioning or completion, the Recipient will submit annually, on the anniversary, an outcome report indicating the revenues received as a result of the Project.

Outcome Reporting

As part of program outcome reporting, performance indicators will be requested during the five years following Project Completion, including:

• Electricity produced (depending on project type);
• Greenhouse gas emissions reductions
• Total jobs to date
• Equity, Diversity and Inclusion plan results
• Grid Service usage

As part of the final report, projects will be asked to provide a Levelized cost of energy, if applicable.

4.3 Repayability

Projects where the Recipient is a for-profit organization and that are intended to allow the business to generate profits will be repayable. Profit in relation to the Project, means net operating profit as determined by Generally Accepted Accounting Principles (GAAP).

These projects will be monitored for five years following their commissioning to determine the amount to be repaid to Canada. Within this time period, if a profit is generated, the Recipient will be required to repay SREPs funds based on profit multiplied by the proportion of Canada’s contribution towards Total Project Costs, up to a limit of the amount of Natural Resources Canada’s Contribution. The maximum repayment would be equal to the program’s Contribution.

The requirements that may trigger repayments will be detailed in the contribution agreement, along with the process for repayment.

The following Projects or Recipients will qualify for non-repayable contribution agreements:

• Indigenous Recipients;
• Provincial, territorial and municipal governments;
• Projects that qualify for less than $100,000 in contribution funding;
• Non-profit organizations.

4.4 Audits

Recipients may be audited during the course of the contribution agreement period or after Project Completion. Financial audits will be tied to financial compliance and Project performance assessments will be evaluated in relation to outcomes identified in the contribution agreement.

4.5 Other Program Terms and Conditions

4.5.1 Intellectual Property

All Intellectual Property (IP) that arises in the course of a Project shall vest in, or be licensed to, the Recipient. The Recipient will grant to Canada a non-exclusive, irrevocable, worldwide, royalty-free licence in perpetuity to use the data and information contained in reports and modify such reports and documents for non-commercial governmental purposes.

4.5.2 Regulatory and Legal Requirements

Prior to Project Approval, where applicable, Projects will be required to complete various provincial environmental assessments, obtain conditional approval from regulatory bodies or obtain necessary permits (such as construction permits), and will be subject to relevant federal and provincial laws and acts. Applicants will be expected to fulfill all federal and provincial regulatory and legal requirements applicable to their Projects, or SREPs funding may be withheld.

4.5.3 Other Conditions

• No Member of the House of Commons shall be admitted to any share or part of the contribution agreements, or any resulting benefit.
• The Applicants and Recipients will comply with the Conflict of Interest Act and the Conflict of Interest and Post-Employment Code for Public Office Holders.
• Funding may be cancelled or reduced in the event that departmental funding levels are reduced by Parliament. Agreements will include provisions to this effect.
• Recipients will be required to acknowledge the financial support of the Government of Canada in all public information produced as part of the Project.
• As part of Project monitoring requirements, NRCan will have the right to visit and inspect all Project sites upon providing a reasonable notice to Project Recipients.
• Contribution agreements will include requirements for joint communications activities, such as public information products, news releases, public announcements, other joint events and official languages.
• NRCan programs are subject to Gender-Based Analysis Plus (GBA+) considerations. As such, NRCan requests that Applicants and Recipients report on the number of women and other identity groups that will be employed on the proposed Project.
• Applications may also be shared for support under other Government of Canada initiatives, such as the Energy Innovation Program (EIP) or Canada Infrastructure Bank. These other programs may require additional mandatory criteria.

Aggregation

For Grid Modernization projects (i.e. Microgrids, Virtual Power Plants, etc.) aggregation refers to the grouping of sites to act as a Single Controllable Entity with respect to grid operations. For grouping of projects to meet minimum project size, please refer to “Bundling”.

Applicant

means the organization that submits a Project Application to the program;

Application

means a written project application signed and submitted by the Applicant to the program, comprised of the Project Registration Form as well as the Technical and Financial Project Application and any additional attachments requested by the program.

Bundling

means grouping of projects to meet minimum project size. Projects can be located in different physical locations and potentially different electrical systems. Bundled sites are still required to meet all other project stream requirements related to grid services, EDI, cybersecurity, and performance data. Bundled projects must be owned by a single applicant.

Construction Start Date

is interchangeable with “Project Start Date” where applicable for projects that do not requires construction activities.

Diversity

means the acceptance and respect of various human dimensions including race, gender, sexual orientation, ethnicity, socio-economic status, religious beliefs, age, physical abilities, political beliefs or other ideologies.

Electricity Market Innovations

are technologies (systems; software and/or hardware) that provide modernization of system operations, dispatch and asset utilization which enables improved clean, reliable, and affordable operation of the electricity system. Efforts may include, but are not limited to, developing new approaches or markets for distributed resources to meet local system needs and introducing advanced approaches, rate structures, and programs to incentivise grid friendly use of end use assets, or allowing inverter-based resources to contribute to essential reliability services.

Eligible Expenditures

means those costs, incurred by Recipient within the Eligible Expenditure Period, which are cash disbursements made with respect to the activities set out in the Application.

Eligible Expenditure Period

means the period starting on the date on which the Applicant was notified of Project Approval and ending on the earlier of the Project Completion Date or March 31, 2029.

Emerging Technologies

means technologies successfully deployed at the utility scale in other countries but not yet commercially viable in Canada, or successfully demonstrated in Canada but not yet commercially deployed.

Equity

means a condition or state of fair, inclusive and respectful treatment of all people. Equity does not mean treating people the same without regard for individual differences.

Grid Services

are also known as “ancillary services” or “essential reliability services.” The International Electrotechnical Vocabulary (IEV) defines ancillary services (IEV 617-03-09) as “Services necessary for the operation of an electric power system provided by the system operator and/or by power system users,” and further notes that “system ancillary services may include the participation in frequency regulation, reactive power regulation, active power reservation, etc.” (Refer to Section 5.1).

Guarantor

means, in relation to a limited partnership, the parent organization or a related organization that guarantees any repayment obligation to the program.

Hybrid Project

is a project which combines technologies from multiple deployment streams.

Inclusion

means the extent to which diverse members of a group (society/organization) feel valued and respected.

Indigenous

is understood to include Inuit, Métis, First Nation, Status Indian and non-Status Indian individuals, or any combination thereof.

Indigenous Recipient

means an Indigenous community or government, Tribal Council, National and regional Indigenous councils, and Tribal organizations, and majority owned and controlled for-profit and not-for-profit organizations.

Indigenous-owned Project

means a Project where there exists Meaningful Ownership by an Indigenous organization that is greater than or equal to 51%.

Meaningful Ownership

means that the Indigenous share of ownership is significant enough to result in generational benefits for Indigenous communities

Microgrid

means a group of Distributed Energy Resources (DERs), including renewable energy sources, energy storage systems, and loads that act as a Single Controllable Entity with respect to grid operations. The microgrid can operate connected to the electric system and/or as an independent island while still meeting the safety and reliability requirements of the local grid codes. Microgrids implement hardware and software control and digitization technology to manage the interactions between generation, storage and load as directed by a local utility, system operator, or private company

Profit,

in relation to the Project, means net operating profit as determined by Generally Accepted Accounting Principles (GAAP).

Project

means the Applicant’s project identified in the Application, as approved by NRCan.

Project Approval

means the date, following evaluation of an Application, on which the Applicant was notified by the program that it has succeeded to the contribution agreement negotiation stage.

Project Completion Date

means the date of Project completion, commissioning or commercial operation, whichever is later.

Project Start Date

is interchangeable with “construction start date” where applicable for Projects that do not requires construction activities.

Recipient

refers to a successful Applicant that has entered into a contribution agreement with NRCan.

Renewable Energy

means energy derived from natural processes that are replenished at a rate that is equal to or faster than the rate at which they are consumed.

Retrofit

means the installation of new software or hardware to an existing renewable energy or storage site to enable grid service capabilities compliant with Section 5.1. Addition of capacity to an existing site is not a retrofit for the purposes of the program and instead is considered a capacity build-out project.

Single Controllable Entity

means any combination of load, and/or generation, and/or storage that can be controlled and operated as if it were single and independent facility.

Stacking

means the maximum limit of total Canadian government funding (federal, provincial, territorial and municipal) that is permitted under a contribution agreement for a Project.

System Operators

are often referred to as “Independent System Operators” and are defined as the Balancing Authority, Transmission Operator or Reliability Coordinator who operates or directs the operation of the Bulk Electric System (BES) in real time as defined by provincial/territorial regulations.

Total Project Costs

means the program’s Contribution and other verifiable cash or in-kind Project contributions, either received or contributed by the Recipient, from the Project Approval date to the Project Completion Date or March 31, 2029, whichever is earlier.

Utilities

are also referred to as “Electrical Utilities”. These entities own, establish, maintain and operate power system equipment (poles, wires, transformers, etc.) within the transmission and/or distribution systems as defined by provincial/territorial regulations.