Oil sands co-generation potential : survey results

This report contained responses received from a February 2005 survey of the oil sands industry concerning the potential for co-generation and the need for transmission in oil sands areas. The results of the survey indicate by 2014 there could be 30 co-generation plants located within 25 oil sands projects in Alberta. Installed capacity of co-generation per barrel produced has decreased over the period surveys. Results indicate that there is a high degree of consistency of the tabulated results in the areas of installed capacity and on-site demand. High gas prices and low pool prices have driven companies to build co-generation capacity closer to site needs with minimum export capacity. Reliability of supply is also a driving factor, suggesting that companies are taking into account electrical market conditions and are more likely to build only to meet site needs. Over the past 2 years fewer units were built as a result of developers' assessments of the various risks associated with building co-generation facilities. It was concluded that oil sands developers continue to be interested in developing co-generation facilities to improve reliability and capture efficiencies. However, potential opportunities have historically been hindered by lack of transmission access to larger export markets and a lack of confidence that additional lines will be constructed in time to build significant co-generation quantities. The Transmission Regulation passed by the government in 2004 addressed these issues by directing the Independent System Operator to plan for transmission system upgrades. 3 tabs., 12 figs