Spring 2025 Request for Proposals
Open for applications from March 7, 2025
On this page
- 1.0 Introduction
- 2.0 Program Overview
- 3.0 Eligibility
- 4.0 Proposal Evaluation
- 5.0 Additional Information
- 6.0 Program Contact
- Annex A: Terms and Conditions
1.0 Introduction
This applicant guide was developed for applicants of the Spring 2025 request for proposals (RFP) for the Smart Renewables and Electrification Pathways program (SREPs) Indigenous-Led Clean Energy (ILCE) stream. This applicant guide outlines the eligibility criteria and describes how Natural Resources Canada (NRCan) will evaluate submitted funding proposals.
Applicants are advised to read this guide before completing their proposal to ensure it includes all information required for the effective evaluation of your proposed project. Applicants with additional questions are encouraged to visit the SREPs page and are invited to contact the SREPs team with any outstanding questions at sreps-erite@nrcan-rncan.gc.ca.
This applicant guide is specific to this RFP of the ILCE stream. NRCan reserves the right to modify proposal processes, adjust eligible funding amounts, apply regional or technology stream funding limits, or cancel any proposal process, at any time and at its sole discretion.
NRCan intends to hold multiple requests for proposals under the ILCE stream. Eligibility criteria (including eligible project types and recipients, and maximum funding amounts) may vary from one intake process to another, depending on the scope and objectives.
2.0 Program overview
2.1 Objectives and outcomes
SREPs supports the deployment of grid modernization, energy storage and renewables in every region of Canada, helping to grow the grid in a sustainable, affordable and reliable manner.
Expected outcomes of the Program include:
- modernizing Canada’s electricity system while maintaining affordability;
- expanding renewable energy and energy storage capacity;
- improving electricity system reliability and resiliency;
- increasing employment in the electricity sector, particularly for Indigenous and underrepresented groups; and,
- supporting increased ownership and benefits accruing to Indigenous communities.
2.2 The Indigenous-Led Clean Energy Stream
NRCan recognizes that First Nations, Inuit, and Métis communities experience unique barriers to participating in the energy transition. SREPs aims to increase meaningful and equitable Indigenous participation in the electricity system modernization by supporting clean energy projects that benefit communities and meet their priorities.
2.3 The Spring 2025 Request for Proposals
The objective of this RFP is to support Indigenous-led, construction-ready deployment projects. Through this intake, SREPs is seeking to advance generation and storage projects that meaningfully involve and benefit Indigenous communities.
The Program is expected to commit up to $100M in funds through this RFP. Projects may be eligible for funding up to a maximum of 75% of eligible total project costs for Indigenous recipients, or a maximum of 50% of eligible total project costs for all other eligible recipients.
The funding contribution for any given project will be based on a detailed financial evaluation of information submitted in the application and validated through the subsequent due diligence process, which includes, but is not limited to, consideration of expected revenues, other sources of funding, federal loans and financing, investment tax credits, etc. The amount of the funding contribution approved by NRCan may be less than the SREPs maximum contribution limit or funding amount requested by the applicant.
2.4 Submission of a project proposal
This RFP is open to all eligible applicants. Participation in the previous ILCE expression of interest (EOI) process, which closed January 31, 2025, is not a pre-requisite to participate in this RFP. Submission of a project proposal does not guarantee applicants will receive funding under the program. Any approvals under this process will be conditional upon successful due diligence and the execution of a contribution agreement.
Prospective applicants can obtain a copy of the project proposal form by requesting it to the program mailbox (sreps-erite@nrcan-rncan.gc.ca) on or after 03-07-2025.
Proposals must be submitted by 23:59 PST, May 28, 2025.
3.0 Eligibility
3.1 Eligible recipients
Applicants to the ILCE Stream must be:
- Legal entities validly incorporated or registered in Canada;
- Provincial, territorial, regional, or municipal governments (and their departments and agencies); or,
- Indigenous communities and governments, Tribal Councils, national and regional Indigenous councils or organizations, and Indigenous for-profit and not-for-profit organizations (majority owned greater than 50% and effectively controlled by Indigenous Peoples). Indigenous is understood to include First Nations, Inuit, and Métis.
3.2 Eligible projects: Mandatory criteria
For this RFP, projects must meet all the following mandatory criteria to qualify for basic eligibility:
- Project scope must involve the deployment of renewable or non-emitting energy for electricity, and/or energy storage. Projects must represent permanent installations at full commercial scale (for examples of eligible and ineligible project types for this RFP, see Table 1).
- Indigenous leadership in the project is defined as supporting meaningful involvement of an Indigenous government, community, or organization, throughout the life of the project including significant economic or other tangible benefits to an Indigenous government, community, or organization. Meaningful involvement may include, but is not limited to:
- the project is driven by or initiated by the Indigenous government, community, or organization;
- there is Indigenous equity ownership or revenue sharing of the project;
- the project is prioritized by an Indigenous governing body within their jurisdiction;
- there is Indigenous control over decision-making or project oversight; or,
- other criteria that express Indigenous leadership in the project.
- Capital costs, or the total project capital cost, defined as expenditures on the project’s physical or fixed assets, must be equal to or lower than thirty million dollars ($30,000,000).
- Integration within the Canadian electricity system through generation, services or capabilities for sale or use in Canada, and must be connected to the North American Bulk Electric System (the interconnected network of transmission and distribution circuits, generation and devices across Canada, the US and Mexico). Remote grids or territorial micro-grids are not eligible under this RFP.
- Funding need for the project must be demonstrated beyond that provided by other federal funding sources. SREPs considers the need for program support as projects that cannot move ahead without additional funding support due to a lack of access to capital or financing, or other tangible barriers.
- Project size must either meet a minimum of 500 kW generation and/or 250 kW AC energy storage for Indigenous recipients, or 4 MW generation and/or 1MW AC energy storage for all other eligible recipients. Bundling of multiple projects to meet minimum size requirements is not permitted under this RFP. Projects must be located at a single site.
- Based on proven technology at a Technological Readiness Level of 8 or above, meaning that the technology has been successfully deployed at the utility scale and is commercially available in Canada. All components used in the project must be proven to work in their final form and under expected conditions.Footnote 1
Eligible for this RFP (not exhaustive) | Ineligible for this RFP (not exhaustive) |
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4.0 Proposal evaluation
4.1 Merit criteria
In addition to meeting mandatory criteria, applications for projects submitted through this RFP will be evaluated against merit criteria in support of the ILCE stream objectives. Applicants are responsible for establishing that the project clearly satisfies each criterion. Failure to do so may result in the project being excluded from funding consideration.
Projects will be evaluated based on the evidence provided to substantiate the following criteria:
- Indigenous leadership. How best the project meets the definition of Indigenous-led (outlined above in section 3.2), with preference given to projects with the greatest direct benefits to involved Indigenous communities.
- Project readiness. The project’s construction readiness, such as land access rights secured, required permits in place, environmental and other regulatory assessments completed, financing secured, and all other required pre-development items are completed.
- Funding need. The ability of a proposal to:
- demonstrate an existing financial need beyond what is provided by other sources;
- provide evidence that the project cannot move ahead without SREPs support; or,
- establish leveraging of funds and a strategic use of federal funding.
- Project impact and societal benefits. The ability of a project to achieve SREPs ILCE stream objectives, including, but are not limited to:
- generating economic and social benefits, including job creation, skills development for workers, and increased Inclusion, Diversity, Equity, and Accessibility in the electricity sector;
- addressing barriers to Indigenous participation in the clean energy sector;
- emissions reductions; or,
- increasing the reliability, resiliency, and flexibility of the power system.
- Project feasibility. The feasibility and likelihood of generating proposed outcomes. Preference will be given to projects that show strong technical merit, effective risk mitigation, and evidence supporting the likelihood of project success.
Once all proposals have been evaluated, applicants will be notified of their status in the selection process. Successful projects will receive conditional approval and move through to the due diligence assessment.
4.2 Due diligence assessment
Projects that receive conditional approval progress through a due diligence assessment to evaluate and verify their financial, technical, governance, and regulatory aspects. Additional and supplementary materials may be required at the discretion of NRCan. This step will determine if the project presents an acceptable level of risk related to its implementation, and if any outstanding conditions can be addressed. Applicants that advance to this stage will receive further instructions specific to the due diligence assessment.
Failure to submit information supporting the due diligence analysis in a timely fashion may result in a project being excluded from the due diligence process and funding consideration.
When concluded, the due diligence assessment will allow NRCan to make a final decision regarding project funding. Once terms of the conditional approval are met, including any identified federal and provincial/territorial regulatory or legal requirements, NRCan may issue full project approval and begin to finalize a contribution agreement for the project.
4.3 Contribution agreement
A contribution agreement outlines the terms and conditions for program funding from the Government of Canada. Until a contribution agreement is signed by the funding recipient and NRCan, no obligation exists on the part of Canada to provide funding to the project.
It is important to note that a contribution agreement may only be finalized with a single recipient. While applications may be submitted by any eligible applicant, projects involving multiple partners must identify or designate a single funding recipient.
5.0 Additional information
5.1 Service standards
NRCan maintains a suite of service standards for the expected timelines of certain program activities. The key service standards for SREPs are as follows:
Program Activity | Service Standard |
Acknowledgement of receipt of project proposal | 5 business days |
Response to a program inquiry | 10 business days |
Program funding decision | 105 business days after proposal submission deadline |
Program payment issued | 30 business days after claim receipt |
5.2 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 third party if the third party 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 its establishment. NRCan will use email correspondence 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.
5.3 Intellectual Property
All intellectual property that arises during 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.
5.4 Duty to consult
NRCan has a duty to consult with Indigenous groups when a contemplated Crown conduct, such as the provision of funding, may have an adverse impact on existing or potential Aboriginal or Treaty rights. In order to assess consultation requirements, use the Aboriginal and Treaty Rights Information System (ATRIS), to identify the Indigenous groups that may be impacted by your project.
By signing and submitting this application, the signatory understands that Canada may withhold the payment or payments until Canada is satisfied that any legal duty to consult with, and where appropriate to accommodate, Indigenous groups has been met and continues to be met to Canada’s satisfaction.
5.5 Environmental assessment
Conditionally approved projects that occur on Federal and/or reserve lands will be assessed in accordance with the Impact Assessment Act (IAA) and other applicable legislation, such as the Species at Risk Act, the Migratory Birds Convention Act, and the Canadian Navigable Waters Act, as part of the SREPs due diligence process. Projects may be subject to additional conditions subject to these Acts and requirements for monitoring & mitigation activities related to these conditions will persist through the implementation of a contribution agreement for a project. Canada will not reimburse claims or advance funding toward eligible expenditures until these terms and conditions are completed to Canada’s satisfaction. Costs associated with environmental assessments, or mitigation and/or monitoring measures under the IAA and other applicable legislation, are considered Ineligible Expenditures under the program.
5.6 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 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 has internal and external reporting requirements. The program may ask proponents to provide voluntary disaggregated job data for different groups (e.g., women, gender diverse people, Indigenous peoples, racialized communities and persons with disabilities). Proposals may also be shared for support under other Government of Canada initiatives, such as the Energy Innovation Program or Canada Infrastructure Bank. These other programs may require additional mandatory criteria.
6.0 Program contact
Applicants are encouraged to consult the SREPs page for updates regarding the timing and availability of funding opportunities as well as a list of frequently asked questions.
Enquiries can be emailed to the SREPs team at sreps-erite@nrcan-rncan.gc.ca.
Annex A: Terms and conditions
Funding
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. All eligible expenditures must be incurred by the Proponent verifiable (e.g., invoices, purchase orders, timesheets) and fall within the following categories:
Salaries and benefits |
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Professional, scientific, technical, and contracting services |
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Equipment expenditures |
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Travel and accommodation |
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Eligible expenses for Indigenous organizations |
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Additional information may be requested to help determine eligible project costs:
- Salaries: The amount invoiced shall be actual gross pay for the work performed and shall include no markup for profit, selling, administration or financing. The eligible payroll cost is the gross pay of the employee (normal periodic remuneration before deductions). Normal periodic remuneration rates are the regular pay rates for the period excluding premiums paid for overtime or shift work. The payroll rate does not include any reimbursement or benefit conferred in lieu of salaries or wages. When hourly rates are being charged for salaried personnel, the hourly rates shall be the periodic remuneration (annual, monthly, weekly, etc.), divided by the total paid hours in the period including holidays, vacation, paid sickness time.
- Benefits: Benefits are defined as a reasonable prorated share of expenses associated with the direct labour cost such as the employer’s portion of Canada Pension Plan, Quebec Pension Plan and Employment Insurance, employee benefits such as health plan and insurance, Worker’s Compensation, sick leave and vacation plus any other employer paid payroll related expenses. Those items which have no relationship to the project or which have been charged on an indirect basis are non-eligible. The determination of the fringe benefits amount shall be in accordance with generally accepted cost accounting principles. In general, fringe benefits rate provided in the project estimate shall be computed once during the life of the project and agreed on prior to the signing of the Agreement. If retroactive adjustments are made, these must be indicated on claims for progress payments for NRCan approval.
Ineligible expenditures
Certain project costs will not be reimbursed by the Program but may be considered toward total project costs. These ineligible costs will be approved on a per-project basis prior to the signing of a contribution agreement and may include:
- costs for work completed by federal laboratories;
- Salary expenses in excess of 20% of NRCan contribution;
- costs associated with federal Impact Assessment processes or other applicable environmental legislation;
- legal costs deemed necessary for the project activities but excludes negotiation with the federal government;
- overhead expenditures; and
- in-kind costs.
Overhead costs must be directly related to the project and are limited to a maximum of 15% of eligible expenditures. Recipients must substantiate a need for including overhead in the total project costs and amounts must be verifiable.
In-kind costs are cash-equivalent contributions in the form of goods and services for which no cash is exchanged but that are essential to the project and would have to have been purchased if they were not provided by the recipient or a project partner.
Inadmissible costs
Inadmissible costs will not be reimbursed by the Program, nor will they be considered as part of total project costs. Examples include, but are not limited to:
- project proposal preparation costs;
- land acquisition including land lease expenses and office rent;
- costs deemed unnecessary for the implementation of the project, including ongoing operating and maintenance costs;
- any costs incurred before the conditional project approval date by the Program; and
- any costs incurred after the project completion date or March 31, 2036, whichever is earlier.
Stacking provisions
Before signing a contribution agreement, recipients must disclose all expected funding sources applicable to the proposed project. This includes contributions from other federal, provincial/territorial, and municipal governments, and private sector sources. The recipient must disclose all actual funding sources following project completion.
The maximum level of government funding towards total project costs will be 75% when the applicant is a for-profit organization, and up to 100% for provincial, territorial, regional and municipal governments (or their departments and agencies), Indigenous applicants, and non-profit organizations. Stacking calculations will include Canada Infrastructure Bank loans and Investment Tax Credits, where applicable. Funding above the stacking limit will be subject to recovery by the Program.
Basis and timing of payments
Eligible expenditures incurred for the project will be reimbursed quarterly and upon receipt of the documentation defined in the contribution agreement.
Where there is a confirmed need, and subject to an evaluation of risk, NRCan may offer fixed or flexible contribution funding approaches for contributions to Indigenous recipients with experience managing complex contribution agreements.
Retroactivity
Expenses incurred from the date of Program notification of due diligence approval to the date a contribution agreement is signed by all parties are eligible for retroactive reimbursement with the following conditions:
- retroactivity is limited to a single fiscal year;
- contribution agreement must be signed in that same fiscal year; and
- retroactivity is limited to a maximum of 30% of the Program’s contribution.
- Reimbursement for these retroactive expenses will only occur after both parties have executed a contribution agreement. Until such an agreement is signed by all parties, no commitment or obligation exists on the part of Natural Resources Canada to make any financial contribution to the project, and any expenses incurred are at the applicant’s own risk.
Holdbacks
To ensure appropriate project oversight, a percentage of each payment will be withheld over the course of the project. This holdback percentage will be established during the due diligence process based on project and recipient risk. The holdback will be released once NRCan deems the conditions of the contribution agreement have been met.
Reporting requirements
SREPs requires reporting both during project implementation and at the end of the project. Where applicable, there may be reporting requirements after the project is complete. Full details of reporting will be laid out in the contribution agreement and may include:
- quarterly reports during the project implementation stage;
- a final report once the project activities have been completed; and
- for five years following project commissioning or completion, where applicable, the recipient will submit an annual revenue and performance report.
Repayability
Contribution Agreements where the proponent is a for-profit organization and that are intended to allow the business to generate profits will be repayable. These contribution agreements will be monitored for five years following their commissioning or completion to determine the amount to be repaid to Canada. Within this period, if a profit is generated, the proponent 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 NRCan’s contribution. The maximum repayment would be equal to the Program’s contribution.
In the case of entities where profits are regulated to a specific rate of return such that repayability conditions would not be met, the Program is permitted to offer non-repayable agreements. Non-repayable agreements will have the post-completion profit monitoring requirements waived.
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:
- projects with less than $100,000 in contribution funding;
- Indigenous recipients whose articles of incorporation do not permit dividends to be paid or distributed to shareholders; and
- projects of a non-commercial nature that do not increase business value or generate profit will be classified as non-repayable.
Audit rights
Recipients may be audited during the contribution agreement period or after project completion for financial compliance (e.g., incurred project costs) and project performance related to the outcomes identified in the contribution agreement.