What is Micro-generation?

Generation is the production of electricity. Electricity is produced by large generators which send electricity through the transmission (grid) and then distribution (wires) systems to homes, farms, businesses and industry.

Micro-generation is the term used to describe generation of environmentally-friendly electricity on a small scale for individual customer use. It is defined as being one megawatt or less, connected to the distribution system, with the generator intended to meet all or a portion of the customer’s electricity needs. Customers who generate their own electricity may be credited for any excess energy sent into the distribution network. Micro-generation units must use electricity generated by an environmentally friendly fuel source such as solar panels, small-scale hydro, wind, biomass, micro-cogeneration and fuel cells.

 

The regulation is the set of rules for electricity customers to generate electricity using micro-generation and receive credit for excess electricity sent to the electricity grid. 

• Customers are provided more choices for how to source their electricity.
• The local wire service provider  distribution company must pay the reasonable costs of interconnection on behalf of the customer, including the cost of required meter upgrades, thus saving the micro-generator money.
• Credit is received for electrical energy supplied to the grid, which allows customers to obtain value for every kilowatt hour (kWh) generated.
• The customer's retailer must manage the administration and billing of the excess energy sent into the grid. This saves the micro-generator customer direct and indirect administration costs.

 

Options include solar photovoltaics, wind turbines, hydro electric systems, cogeneration systems (fuelled by biomass, biogas, natural gas, etc.), waste energy recovery units, fuel cells, and more. In all cases the micro-generator must prove that greenhouse gas emissions from the system are 418 kilograms or less per megawatt hour of electricity and/or useful heat generated. 

The goal of the Micro-Generation Regulation is to promote cleaner energy. There is considerable potential for cleaner, fossil fuel-based micro-generation in the province so the regulation was specifically designed to ensure that cleaner fossil fuels were not excluded. The 418kg/MWh ensures that all micro-generators will have lower greenhouse gas emissions than a typical combined cycle natural gas power plant. 

All customers who want to become a micro-generator must apply to the Alberta Utilities Commission(AUC) and their distribution company to get approval to connect and operate a generating unit.  The four steps to become a micro-generator along with current mirco-generation reporting can also be found on the site. 

The main organizations involved in a micro-generation application include the micro-generator customer, the local wire service provider, the customer’s retailer, and the provincial regulator, the Alberta Utilities Commission (AUC).

To start a mini micro-generation application the customer should first contact their local wire service provider and electrical energy retailer. Your electricity bill identifies your retailer and local wire service provider. Information on retailers is also available from the Utilities Consumer Advocate.

To start a small or large micro-generation application the customer should first contact their local wire service provider and electrical energy retailer.  In these cases the AUC is also involved with the local wire service provider in the reviewing the application. There may also be an energy price negotiation process with the energy retailer.

Details on the obligations and roles of each of these parties are described in the Micro-Generator Application Guideline(AUC).

 

 

Yes. In order to send excess electricity to the grid you need a meter that can measure electricity flow in both directions. Micro-generators are not responsible for paying for metering costs. Rather, reasonable costs of interconnection and meter infrastructure are shared by all customers in the distribution company’s service area, which is monitored by the AUC to ensure the costs they are passing to their customers are just and reasonable. 

Under the Micro-generation Regulation, the proposed capacity of a micro-generation unit cannot exceed your own electricity needs. The regulation is not for commercial purposes; rather, it is an option for Albertans who want to generate their own renewable and alternative sources of electricity. 

No. The Micro-generation Regulation allows credit for electricity sent to the grid in excess of own use. The credit is awarded in kilowatt hours (kWh) of electricity (offsetting future purchases) rather than monthly payments. Customers who generate alternative or renewable electricity for the specific purpose of earning revenue from the sale of electricity are not eligible under the regulation. 

No. Small renewable and alternative sytems can still sell electricity in Alberta but not under the Microgeneration Regulation. The owner of a small alternative and renewable electricity generator intended for earning revenue, and not for its own use, is considered a commercial generator. Small commercial generators must follow the same rules and application processes as any commercial generator. 

Net metering employs a single meter to track both incoming and outgoing electricity with a single register. Micro-generation, uses net billing. Net billing employs a meter with two registers - one for electricity fed to the grid and one for electricity taken from the grid. Having two registers allows micro-generators to keep track of how much electricity their system has generated. 

Yes. The Micro-generation Regulation only provides for a credit for the excess electricity sent into the grid. The customer would still pay for all electricity purchased from the grid, as well as all fees associated with energy delivery, monthly administration, billing and interconnection. 

If a micro-generator cannot resolve a dispute directly with the wire service provider or local retailer in question, any disputes may be referred to the provincial regulator - the Alberta Utilities Commission (AUC) - which will review the case and decide how all parties must proceed.  

If you have questions about the application process, contact the Alberta Utilities Commission:

310-0000, then 780-427-4901

If you have questions about your distribution or electricity bill, contact the Utilities Consumer Advocate:

310-4UCA