First Nation Power Development Inc. is moving forward with two major solar power projects in Alberta.

Bolstered by a $1.3-million grant from Natural Resource Canada‘s (NRCan) Smart Renewables and Electrification Pathways (SREP) program, FNpower is preparing for its Tilley Solar facility to become operational early in 2025 followed later in the year by the beginning of construction on the Paul First Nation Solar Farm.

In cooperation with provincial authorities and Indigenous Peoples’ enterprises, the $4.5-billion NRCan-led SREP program supports grid modernization activities, energy storage, and wind and solar projects intended to decarbonize Canada’s electric grid.

"With the support of Natural Resources Canada, we are driving momentum for Indigenous leadership in renewable energy. Our commitment to creating equitable partnerships has driven the success of projects like the Tilley Solar project and now the Paul First Nation Solar Farm project, both Indigenous-led and majority-owned," Firman Latimer, FNpower's founder and CEO, said in a release.

The $52-million Tilley Solar plant, located in Newell 200 kilometres southeast of Calgary, is a 23.6-megawatt large-scale solar farm comprising nearly 70,000 fixed-tilt photovoltaic panels that will reduce carbon emissions in Alberta by approximately 14,200 tonnes annually.

Tilley is a joint venture between FNpower and Alexander First Nation in collaboration with Concord Green Energy (a subsidiary of Concord Pacific), and the Canada Infrastructure Bank which provided a $33-million loan to complete the project.

At its peak, the project is expected to create 150 full-time jobs for indigenous community residents. FNpower spent the past two years providing training for the skilled labour force involved in the preparation, installation and operation of the Tilley Solar farm.

FNpower to expand First Nations' infrastructure 

"With the backing of Alexander First Nation in 2021, I was able to establish First Nation Power Development whose sole purpose was to go out and be a player in the renewable energy industry," Latimer said in an interview with Sustainable Biz Canada.

"Included in that plan was the goal of representing First Nation interests and developing a framework for their communities to participate and have meaningful ownership in large-scale renewable energy projects where the First Nations will be owners and operators and benefit from long-term revenue streams.

"That's when I started approaching potential partners for the Tilley Solar farm. Ultimately it became the second renewable energy project in Alberta to succeed in accessing Canadian infrastructure-based financing, allowing Alexander First Nation to participate and own 50 per cent of the project."

Meanwhile, FNpower is awaiting final Alberta regulatory approval on the Paul Solar plant, to be located 60 kilometres west of Edmonton. FNpower rescued the project after it stalled in 2019 following a change in leadership within Paul First Nation. Construction is to begin in 2025. 

With a projected cost of $60 million, the Paul Solar Farm is designed to be a 37-megawatt facility — approximately one-third larger than the Tilly project — and will incorporate nearly 80,000 photovoltaic solar panels.

Tilley, Paul projects follow long-term business model

The launch of the Tilly Solar project serves notice that First Nations communities are fully capable of owning and operating large-scale renewable energy assets. 

This reflects the entrepreneurial vision of Latimer. He has developed a business model easily replicated in other First Nations communities, as is the case with the impending Paul Solar plant.

This framework includes strategies for securing infrastructure financing, navigating regulatory processes, and ensuring community involvement in renewable energy projects so First Nations benefit directly from the revenues generated. 

"Now that we're in the process of receiving final regulatory approval from the Alberta Utility Commission, it's simply a matter of getting the financing and other pieces in place so we can begin construction on the Paul Solar project," Latimer said.

Tilly is expected to be cash-flow positive from the beginning. although a significant portion of this revenue will go towards debt servicing and repayment.

"But once the loans are fully paid off (in 20 to 30 years), annual cash flows could reach up to $10 million which will generate major new economic opportunities for First Nations communities." 

A new threat to renewable energy projects

Latimer said, however, the future of indigenous renewable energy projects in Alberta is under threat from the province's Restructured Energy Market (REM) program. Announced in March, it is now starting to take effect.

"What's happening in Alberta with the policy changes under REM is that we're seeing negative impacts on the renewable energy industry. I'm hoping this will not negatively impact some of the investments now being made by First Nation communities which are starting to get involved in this sector," Latimer said.

"The way the provincial government is (implementing) REM . . . is to support the dominance of the oil and gas industry in the power production space over renewable energy . . . Under REM, Alberta has placed a moratorium on renewable energy projects. We've now seen the number of such project applications . . . go from gangbusters to basically nil."

He said REM will create a "negative price floor" for renewable energy projects such that the "economics are no longer there" and there is "no opportunity to develop renewable energy" as things stand.

"The way Alberta seems to be going is shifting policies to drive out renewable energy . . . The developers are going to get out of (Alberta) . . . and the trend is that all the (renewable energy) developers are shifting to Ontario now.

"The trouble with that is that (Alberta's) First Nations communities aren't going to be able to pick up and leave."