Smart Renewables and Electrification Pathways Program

Applicant guide: Utility Support Stream – Deployment Projects Expression of Interest

Table of contents

• 1.0 Introduction
• 2.0 Program overview
• 3.0 Application process
• 4.0 Proposal evaluation
• 5.0 Additional information for recipients
• Contact us

1.0 Introduction

This Applicant Guide is designed to assist applicants with their Expression of Interest (EOI) submissions to Natural Resources Canada’s (NRCan) Smart Renewables and Electrification Pathways Program (SREPs).

The EOI is intended for two main purposes:

1. To gain an understanding of grid modernization projects being proposed across Canada.
2. To confirm that submitted projects meet mandatory criteria and align with the program objectives. This will allow SREPs to identify projects to invite to submit a proposal at a later date.

Applicants are advised to read this guide before completing their EOI to better understand SREPs and its funding assessment process. This guide provides information on eligibility criteria, explains the EOI submission process, and outlines how SREPs will evaluate EOIs. Applicants with additional questions are encouraged to consult Smart Renewables and Electrification Pathways Program and are invited to contact the program via the information found in the Contact us section.

With the program’s recapitalization in 2024, SREPs has introduced new project streams and shifted away from a continuous intake model based on “first in construction, first served”. The newly designed program will use a series of competitive processes that select projects which demonstrate a financial need beyond what is currently provided through other federal support mechanisms. Projects will be selected through stream-specific processes and merit-based assessment.

1.1 Important considerations

This Applicant Guide only applies to the Utility Support Stream 2024 EOI process. NRCan reserves the right to modify EOI processes, adjust eligible funding amounts, apply regional or technology stream funding limits, or cancel any intake process, at any time and at its sole discretion.

The program has the authority to create funding reserves to support priority projects in fossil fuel-reliant provinces and territories in coordination with provincial and territorial governments or crown corporations and will ensure that Indigenous-led projects are prioritized.

Collaboration and financial leveraging from other sources are strongly encouraged. With the applicant’s consent, EOIs submitted under SREPs may be shared with other government funding programs to which the project may be eligible.

2.0 Program overview

2.1 Background and objectives

SREPs supports the federal government’s commitment to work towards a net-zero electricity system, and a net-zero economy by 2050.

Expected outcomes of the program include:

• decarbonizing Canadian electricity systems 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 Funding streams

The program will consist of three funding streams:

• Utility Support Stream to support utilities and electricity system operators as they transition to a net-zero system while maintaining reliability and affordability;
• Critical Regional Priorities Stream to support jurisdictions in decarbonizing their electricity systems and accommodating broad electrification; and
• Indigenous-Led Clean Energy Stream to increase meaningful and equitable Indigenous participation in the clean energy transition.

Each stream will include support for deployment projects and pre-development activities, as well as capacity building in some cases.

2.3 Intent of the Utility Support Stream

The Government of Canada recognizes that Canadian utilities and system operators in Canada are facing competing priorities to decarbonize their systems while simultaneously maintaining electricity supply at the least cost to ratepayers. Additionally, they are facing challenges with the integration of distributed energy resources, such as wind and solar, while striving to reliably meet the demands of system-wide electrification.

The Utility Support Stream aims to support utilities in modernizing their systems and processes to enable renewable energy integration while maintaining reliability and affordability. These activities are critical in ensuring that grids remain stable, distributed energy resources are effectively utilized, and consumer confidence in decarbonization is maintained. The stream expects to fund projects consisting of activities such as grid modernization, upgrades and expansions to transmission and distribution systems, and technology upgrades which increase the future integration of clean electricity generation.

2.4 Utility Support Stream eligibility

2.4.1 Eligible applicants

Projects under the Utility Support Stream must be led by a utility, system operator, or an entity that demonstrates that the project will directly benefit a utility and/or system operator to meet their needs.

Applicants to the SREPs Utility Support 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 of voting shares owned and de facto controlled by Indigenous Peoples).

Only one organization can be designated as the recipient of SREPs funding. For joint ventures, consortiums, or the like, this organization will become the legal signatory to the funding agreement and will be responsible for managing the project and reporting on results.

Note: For the purposes of this applicant guide, the term “Indigenous” is understood to include Inuit, Métis, and First Nations.

2.4.2 Eligible projects

SREPs aims to support projects that improve grid reliability, resiliency, and flexibility while improving affordability and enabling greater adoption of renewable energy. Projects can propose technologies as they see fit to meet these goals, but projects must:

• enable decarbonization of the electricity system;
• represent a permanent installation of equipment or a modification to existing processes, equipment, or systems for commercial operations;
• be located in Canada and provide services or capabilities for sale or use in Canada; and
• represent a proven technology – Technology Readiness Level (TRL) 8 or above)^{Footnote 1}.

The following list provides examples of the types of projects the program anticipates supporting:

Advanced smart grid technologies and applications

• Advanced demand response
• Advanced distribution or transmission management
• Advanced fault analysis
• Advanced inverter function
• Advanced load, distributed energy resources, and renewable energy integration
• Locational net benefit/value analysis
• Optimization analytics
• Self-healing grids
• Voltage and reactive power management and optimization

Core smart grid technologies and applications

• Accurate power flow modeling
• Advanced sensors
• Cybersecurity
• Demand response
• Enterprise asset management
• Customer information platforms
• Microgrids
• Remote fault indicators and protection upgrades or replacements
• Smart meters

Foundational smart grid technologies

• Asset management
• Circuit topology
• Distribution automation and management
• Information technology
• Metering
• Outage management
• Substation automation
• Telecommunication

2.5 Funding

2.5.1 Program funding amount

The maximum amount of SREPs funding for an individual project is $50 million or up to 50% of total project costs, whichever is less.

The contribution amount for each project will be determined according to NRCan’s assessment of financial need, and the final contribution offered may differ from the amount requested. The funding amount for each project will be determined by evaluating information such as project documentation, financial plan (including sources and amount of funding from other funders), a risk-based due diligence assessment, and other documents submitted during the application process.

3.0 Application process

SREPs portal registration

To begin an Expression of Interest submission, applicants are asked to create a profile in the NRCan Funding Portal. This portal will be the primary means for collecting and storing submission information.

To submit an Expression of Interest, you will need a Government of Canada-issued GCKey to access the online funding portal. A GCKey is a unique electronic credential provided by the Government of Canada that allows you to communicate securely with online programs and services.

If you do not already have one, you can get a GCKey at the Government of Canada’s Welcome to GCKey webpage. Once you have a GCKey, you can access the SREPs online funding portal to prepare and submit your Expression of Interest.

Submitting an Expression of Interest

Expressions of Interest may be submitted at any time once the funding opportunity is open in the funding portal. The portal will be open from November 1 to December 13, 11:59 PM PST 2024.

Interested Applicants must request an EOI form by emailing sreps-erite@nrcan-rncan.gc.ca. Potential applicants are encouraged to review the form along with this applicant guide prior to submitting through the funding portal.

A submission can be updated or changed until it is submitted. Applicants are advised to ensure that the Expression of Interest form is complete and final before submitting. Once submitted, changes cannot be made. Incomplete submissions will not be considered.

We recommend preparing your responses in a document offline before copying them into the online form and submitting. Please also ensure you save the online form often. Applicants can submit multiple Expressions of Interest. Program staff will screen the EOIs and contact applicants about next steps.

When the funding opportunity closes, the EOIs will be evaluated, and only recommended projects will proceed to the project proposal stage. Submission of an EOI does not guarantee funding under the program.

3.1 Expression of Interest

Applicants must complete the provided template, ensuring that all required information is entered in the appropriate sections. EOIs will be evaluated by an interdisciplinary panel of experts, which will recommend an initial list of projects considered to proceed to the project proposal stage.

4.0 Screening criteria

4.1 Mandatory criteria

Projects interested in applying under the Utility Support Stream must fall within one or more of the targeted areas:

• Existing asset upgrade or enhancement: initiatives to improve the utilization and/or efficiency of existing assets. This includes both regulated and non-regulated assets;
• Clean energy integration: projects that facilitate the integration and use of renewable energy or electricity, or that proactively ensure the grid will have the capacity to accommodate the growing demand for clean electricity;
• System expansion and sustainment: initiatives to increase the reliability, resiliency, and flexibility of the power system. This category would also include non-conventional infrastructure solutions such as non-wire alternatives.

Eligible projects must meet all the following mandatory eligibility criteria:

• Eligible applicant: Eligible applicants are incorporated or registered legal entities, government bodies, and Indigenous organizations and groups having their principal place of business in Canada. Projects must be led by a utility or system operator or demonstrate that the project will be actively utilized by a utility and/or system operator to meet their needs;
• Facilitates decarbonization of the electricity sector: The proposed project must support utilities and system operators in enabling decarbonization while maintaining reliability and affordability;
• Integration within the Canadian electricity system: The project must support the active integration and utilization of grid modernization project capabilities in utility and/or system operator operational and decision-making processes. Project outputs will provide services or capabilities for sale or use in Canada; and
• Based on proven technology: The proposed project must use technologies that have been completed and qualified through tests and demonstrations. All components used in the project must be proven to work in their final form and under expected conditions.

4.2 Rated criteria

EOIs that meet all mandatory criteria will also be assessed for alignment with the program’s rated criteria listed below.

• Project impact: Projects will be evaluated based on their ability to achieve program objectives. These include, but are not limited to:
• Improving the utilization and efficiency of existing assets;
• Increasing the reliability, resiliency, and flexibility of the power system;
• Increasing the integration and use of renewable resources and non-conventional infrastructure solutions;
• Improving affordability as demonstrated by the impact on rate payers;
• Generating economic and social benefits, including job creation and increased Inclusion, Diversity, Equity, and Accessibility in the electricity sector; and
• Proactively ensuring the grid can accommodate the growing demand for clean and affordable electricity in an equitable manner.
• Strategic value: Projects will be evaluated based on their ability to demonstrate the overall value of investment. This will consider elements such as regional need, the role of funding in securing necessary approvals, and a demonstrated need for funding. Applicants should also consider the impact on long-term corporate strategies, with a focus on system decarbonization, reliability, and affordability.
• Project feasibility: Projects will be evaluated on their feasibility and likelihood of generating proposed outcomes. Preference will be given to projects that can demonstrate strong technical merit and business need, effective risk mitigation, and evidence supporting the likelihood of project success.

SREPs will notify all applicants of their status in the EOI assessment and selected EOIs will move through to the project proposal stage.

5.0 Additional information for applicants

5.1 Full process overview

The following is provided to inform applicants of the overall process ranging from initial EOI submission through to a negotiated contribution agreement. A contribution agreement outlines the conditions for funding from the Government of Canada. Details for each step will be made available to applicants as they progress through the process.

5.2 Service standards

NRCan maintains a suite of service standards on the expected timelines for certain program activities. The key service standards for SREPs are as follows:

Program Activity	Service Standard
Acknowledgement of receipt of an EOI	5 business days
Response to a program inquiry	10 business days

5.3 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. Nonetheless, applicants who regularly use email to communicate confidential information within their own organizations may choose to submit their documentation packages by email (see Contact us).

5.4 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.

5.5 Other considerations

• 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.
• Proposals may 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.

5.6 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, 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

5.7 Environmental Assessment

Where applicable, projects under the Program will be assessed as per the Impact Assessment Act and other applicable legislation prior to funding being released to a proponent.

Contact us

Applicants are encouraged to consult Smart Renewables and Electrification Pathways Program 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.