Applicant Guide: Smart Renewables and Electrification Pathways (SREPs) Program Capacity Building Stream

Capacity Building funding and Indigenous Engagement Grants through SREPs help support an equitable transition to a cleaner electrical grid. Funded projects enable communities and organizations to acquire knowledge and tools to support decision-making and participation as SREPs advance the deployment of renewable energy, energy storage, and grid modernization technologies across Canada.

Program objectives

Overall program objectives

SREPs aims to reduce greenhouse gas (GHG) emissions to meet Canada’s 2030 targets and beyond by supporting the transition towards electrification through 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.

Mandatory outcomes of the program are to:

Decrease greenhouse gas emissions from Canada’s electricity system;
Increase the number of electricity system assets that can contribute to system reliability;
Generate economic and social benefits, including job creation and increased inclusion, diversity, equity, and accessibility (IDEA) in the energy sector; and
Increase renewable energy capacity or electrical grid accommodation of renewable energy;

Where applicable, the program will also increase meaningful Indigenous ownership of, and benefits from, renewable energy project deployment.

SREPs Capacity Building stream

The SREPs Capacity Building stream supports communities in acquiring the knowledge and tools needed to strengthen and/or develop their ability to participate in and meaningfully benefit from renewable energy, energy storage, and grid modernization projects. This program stream also supports efforts to enhance inclusion, diversity, equity, and accessibility (IDEA).

SREPs Indigenous Engagement Grants

The SREPs Indigenous Engagement Grants stream supports Indigenous communities and/or Indigenous organizations seeking to access resources and expertise to inform decision-making on their involvement in and/or support of a proposed renewable energy, and/or energy storage projects.

Eligibility for Capacity Building stream
Maximum SREPs Funding as Percent of Total Project Costs	75%
Maximum SREPs Funding Amount per Project	$2 million *(over 4 fiscal years or less)*
Stacking Limit with Other Government Sources	100%

Eligible applicants for Capacity Building stream

The following entities are eligible under the SREPs Capacity Building stream:

Indigenous applicants (including Indigenous communities or governments, tribal councils, national or regional Indigenous councils, tribal organizations, and Indigenous majority-owned and controlled for-profit and not-for-profit organizations);
Canadian legal entities (for-profit and not-for-profit) validly incorporated or registered; and,
Provincial, territorial, regional, or municipal governments and their departments and agencies.

Eligible Capacity Building activities

SREPs is currently seeking proposals for the following eligible types of community- and/or project-specific capacity building activitiesrelated to grid-connected renewable energy and energy storage, and/or grid modernization projects:

Pre-development activities (including but not limited to feasibility studies, engineering studies, or environmental studies) supporting the advancement of Indigenous-led projects, with a preference for 100% Indigenous-owned projects;
Guidance (such as technical and financial expertise) for Indigenous communities evaluating and negotiating economic development partnerships with a developer and/or utility;
Workforce training and integration activities that will increase inclusion, diversity, equity, and accessibility for future renewable energy, energy storage, and/or grid modernization projects, including training and attraction and retention strategies.

Eligible Capacity Building expenses

All expenses must be directly related to and necessary for the project, as well as verifiable (i.e., invoices, purchase orders, timesheets).

Eligible expenses may include:

Salaries and benefits for employees on the payroll of the applicant organization, for actual time spent by employees on the project;
Professional, technical, and contracting services;
Other expenses including:
- Field supplies, materials, and testing services;
- Printing services and translation;
- Facility costs for training, seminars, conference room rentals, etc. (excluding hospitality);
- Accreditation, licence fees, and permits; and
- Honoraria for Indigenous peoples and costs associated with Indigenous ceremonies.
Goods and Services Tax (GST), Provincial Sales Tax (PST), or Harmonized Sales Tax (HST), net of any tax rebate to which the applicant organization is entitled(in accordance with NRCan’s “Certification for the treatment of GST, HST or PST” form, which will be provided by the program if the project is approved for funding consideration).

Where the program determines it is necessary for the project, travel and accommodation costs may be considered as eligible expenditures (based on National Joint Council Rates). Justification will be required from the applicant.

Ineligible expenses, which will not be reimbursed by the program but may be considered as part of the total project costs, include:

Overhead expenses directly related to the project, such as office equipment and operating expenses, limited to a maximum of 15% of eligible expenditures;
Hospitality costs directly related to the project, such as food and beverage for meetings or workshops; and
In-kind costs.

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 be purchased if they were not provided by the applicant organization or a project partner.

The program will not reimburse any portion of the following costs, nor will it consider them towards total project costs:

Land acquisition costs and associated real estate fees;
Project proposal preparation costs;
Tax preparation costs;
Costs that cannot be deemed necessary for the implementation of the project;
Costs associated with the protection of intellectual property;
Salary benefits unrelated to the project (e.g., employee bonuses); and
Costs incurred before the organization has been notified that it can begin incurring total project costs, or after the project completion date or March 31, 2028, whichever is earlier.

Eligibility for Indigenous Engagement Grants
Maximum SREPs Funding as Percent of Total Project Costs	90%
Maximum SREPs Funding per Project	$50,000/fiscal year *(up to 3 fiscal years)*
Stacking Limit with Other Funding Sources	100%

Eligible applicants for Indigenous Engagement Grants

The following entities are eligible under the SREPs Indigenous Engagement Grant stream:

Indigenous applicants (including Indigenous communities or governments, tribal councils, national or regional Indigenous councils, tribal organizations, and Indigenous majority-owned and controlled for-profit and not-for-profit organizations).

Eligible Indigenous Engagement activities

Eligible Indigenous engagement activities are limited to projects where the expected outcomes are known at the onset of the project and that contribute to SREPs objectives. They can include:

- Activities which support Indigenous communities and/or organizations to assess options for involvement in grid-connected renewable energy and/or energy storage projects, including but not limited to;
  1. Hiring external legal or commercial support to review project development partnership agreements;
  2. Engaging support to connect a community interested in project development with a suitable partner;
- Activities which enable Indigenous communities potentially affected by a proposed grid-connected renewable energy and/or energy storage project to investigate opportunities, impacts, and/or mitigations, including but not limited to;
  1. Hosting community meetings or workshops to share and discuss project opportunities.
- Conducting an environmental or traditional land use study and/or survey related to a proposed grid-connected renewable energy and/or energy storage project.

Eligible Grant expenses

Eligible Expenditures are those necessary to support the purpose of the funding and must be directly related to the implementation and conduct of a project. These include:

Salaries and benefits for employees on the payroll of the applicant organization, for the actual time spent by the employees on the project;
Professional and contracting services;
Other expenses, including:
- Printing services and translation;
- Data collection services, including processing, analysis, and management;
- Facility expenses for seminars, conference room rentals, etc. (excluding hospitality); and
- Honoraria and costs associated with Indigenous ceremonies, where the applicant is an Indigenous organization.
GST, PST, or HST costs, net of any tax rebate to which the applicant organization is entitled.

Ineligible Expenditures (for which the program will not reimburse any portion of the following costs, nor consider towards Total Project Costs) include proposal preparation costs, capital expenditures, costs for construction, lost income, and renovation of buildings.

How proposals will be assessed

The following assessment criteria will be used to evaluate capacity building and Indigenous engagement proposals:

The extent to which the project supports overall program objectives;
The ability of the applicant to deliver the project, based on the proposed project team and its individual and collective experience and expertise;
Clearly described and achievable project timelines, milestones, and budget;
The project’s technical, social, economic, and environmental merits, including long-term benefits from the project;
Verifiable expenditure estimates for the project and its management;
Applicant coverage of a portion of project costs, in the form of cash or in-kind contributions;
Clearly described risks to the success of the project and mitigation strategies (where applicable);
The potential for and likelihood of the resulting future deployment of a renewable energy, energy storage, and/or grid modernization project;
The extent to which the project benefits one or more Indigenous communities and/or members of marginalized and/or underrepresented groups in the energy sector based on an identified gap; and
The extent to which the activities are led and/or supported by the intended beneficiary(ies) and/or community(ies), including demonstrated support (e.g., letters of support, band council resolutions).

Regional distribution of funding may also be considered as part of the project evaluation and selection process.

How to submit a proposal

Request a proposal template by emailing the program mailbox: sreps-erite@nrcan-rncan.gc.ca with the subject line “SREPs Capacity Building: Request for Proposal template” or “SREPs Indigenous Engagement Grant: Request for Proposal template.”
Submit the completed proposal as a Word file and as a signed PDF (digitally signed or jpeg signature) to the program email above. Letters of support from participating communities are strongly encouraged.
An automatic reply will inform you that your submission has been received. If you do not receive an automatic message, please send a separate email to the program mailbox.
The deadline for submitting a proposal under each round of requests for proposals will be indicated on the program website and in the proposal template. The program may follow up if a submitted proposal has missing or incomplete information.
Following the assessment phase, all applicants will receive a funding decision by email. Please see below for service standards. Notification timelines are provided on the Capacity Building page.

For any questions while completing the proposal template, please contact the program at: sreps-erite@nrcan-rncan.gc.ca.

Note: The program will not respond to inquiries about proposal status from the date of submission until applicants have been informed whether or not their proposals were accepted.

If your proposal is accepted

Following the proposal evaluation phase, the program will seek internal management approval for the selected projects. All applicants will be notified via email of program funding decisions. Projects selected for funding consideration will then go through a due diligence process to confirm final details needed to draft the contribution or grant agreement. The eligible expenditures period will begin the date the contribution or grant agreement is signed by all parties.

To understand the timeline for approval and negotiation, please see the Service Standards section below.

Note: Until a contribution agreement or grant agreement is signed, there is no guarantee of program funding.

NOTE: The Government of Canada has a legal duty to provide, and is committed to ensuring, a work environment to public service employees that is free of harassment and violence. The program will not tolerate any harassment or violence to its employees. The program reserves the right to take necessary steps, including no further consideration of an application in the event of an applicant’s harassment or violence to the employees of the program.

How payments will be issued

Capacity Building

The program will sign contribution agreements with selected applicants that will outline the required documentation for payment. Payments will be issued on a quarterly basis based on evidence of costs incurred.

A holdback amount, based on project and applicant risk, may be applied to program payments and released upon the approval of a final project report. Advance payments may be permitted, where requested by the applicant, and based on an assessment of need, risk level, and cash flow requirements. Further details will be provided during the contribution agreement negotiation.

Note: Upon request, for multi-year contribution agreements, Indigenous applicants may be eligible to receive flexible funding. This funding approach allows the applicant to redirect funding among eligible expenditure categories and request advance payments for expected project costs. Additional clarification will be provided during the due diligence process.

Expense claims for project reimbursement must be submitted on a quarterly basis (every three months). All claimed expenses must be verifiable and necessary for the implementation of the project. The program may audit all expenses at any point during the agreement and up to three years following project completion.

A final report, using a template provided by the program, is due three months after the end of the project. More information about reporting requirements and timing will be detailed in the contribution or grant agreement.

Indigenous Engagement Grant

The program will sign grant agreements with selected applicants that will outline the required documentation for payment. Grant payment(s) will be made annually, following agreement signature and confirmation of continued eligibility.

All grant expenses must be verifiable and necessary for the implementation of the project. The full list of eligible and ineligible expenses is under the “Eligible Grant Expenses” section above.

A final narrative report, using the preferred format of the applicant, is due three months after the end of the project. More information about reporting requirements will be detailed in the grant agreement.

Definitions

“Accessibility” is the provision of flexibility to accommodate needs and preferences, and refers to the design of products, devices, services, or environments for people who experience disabilities. (Source: Canadian Commission for UNESCO Toolkit for IDEA)
“Applicant” means the organization that submits a project proposal to the program.
“Proposal” means a written project proposal signed and submitted by the Applicant to the program, including any additional attachments requested by the program.
“Diversity” means the acceptance and respect of various human dimensions including race, gender, sexual orientation, ethnicity, socioeconomic status, religious beliefs, age, physical abilities, political beliefs, or other ideologies.
“Equity” means a condition or state of fair, inclusive, and respectful treatment of all people based on their individual differences and circumstances. It is the principle of considering people’s unique experiences and differing situations, and ensuring they have access to the resources and opportunities that are necessary for them to attain just outcomes.
“Fiscal Year” means the period beginning on April 1 of any year and ending on March 31 of the following year;
"Grid connected" means a renewable energy or energy storage project that connects/generates power into the bulk electricity system/north American power grid;
“Inclusion” means the extent to which diverse members of a group, society, or organization feel valued and respected.
“Indigenous” includes Inuit, Métis, First Nation, status Indian, and non-status Indian individuals, or any combination thereof.
“Marginalized groups” means a group of people that is excluded from full and meaningful participation in society, typically through discrimination or other means of oppression. Members of a marginalized group have reduced access to resources, opportunities, and services. A group of people can be marginalized based on factors such as race, ethnicity, sex, gender, ability, age, religion, socioeconomic status, social class, and geographic location.
“Project” means the Applicant’s project identified in the Proposal, as approved by NRCan.
“Renewable Energy” means energy derived from natural processes that is replenished at a rate that is equal to or faster than the rate at which it is consumed.
“Stacking” means the maximum limit of total Canadian government funding (federal, provincial, territorial, and municipal) that is permitted under a contribution or grant agreement for a Project.
“Total Project Costs” means the program’s Contribution and other verifiable cash or in-kind Project contributions, either received or contributed by the Applicant, from the Agreement signature date to the Project Completion Date or March 31, 2028, whichever is earlier.
“Underrepresented groups” means groups of people whose representation within the energy sector is lower than its representation in the general population, including but not limited to, women, 2SLGBTQ+, Indigenous peoples, racialized peoples, youth, and persons with disabilities.

Service standards

Activity	Service Standard
Acknowledgement of receipt of project proposal	5 business days after receipt of proposal
Program funding decision	105 business days after receipt of proposal
Program payment issued	30 business days after receipt of claim

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.
Applicants 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. Contribution agreements will include provisions to this effect.
Organizations will be required to acknowledge the financial support of the Government of Canada in all public information produced as part of the project.
Contribution agreements will include requirements for joint communications activities, such as public information products, news releases, public announcements, and other joint events.

Disclaimer

Natural Resources Canada (NRCan) reserves the right to alter or cancel any request for proposals, funding amounts, and/or deadlines associated with any program component, or to cancel any proposal process at its sole discretion. Any changes will be communicated to applicants via the program website.

Proposals may also be considered for support under other Government of Canada initiatives.

Any costs incurred for the submission of a project proposal are at the applicant’s own risk and cannot be considered as part of total project costs. In all cases, funding under any 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 contribution agreement.

Date modified:: 2023-11-02

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