Transmission and Canada
A certain degree of local congestion and general oversupply is often planned into the system. However, given the relatively narrow operating margins of wind and solar projects, typical project leverage ratios and the debt service coverage ratio covenants by which most projects are bound, an annual curtailment of generating capacity of more than one percent can have a devastating impact on project viability.
In a leaked letter sent to the PC caucus, the Industrial Power Consumers Association of Alberta (IPCAA) lambasted AESO's proposed lines as "unnecessary," "irresponsible," "unaffordable" and "lacking common sense." Instead of attracting investment, the plan, they claim, will drive industrial users out of Alberta or force them to generate their own power, leaving domestic users to pick up industry's share (61 percent) of the tab. Even the Fraser Institute, an industry cheerleader, is opposed.