Edmonton – Energy – The Alberta government is overhauling its electricity market to prioritize affordability and reliability for Albertans. This comes in response to challenges created by the rapid phase-out of coal power in 2016 and the increasing reliance on renewable energy sources.
The province aims to address price volatility and grid instability caused by intermittent renewable sources like wind and solar. Key changes include:
- Shifting Transmission Costs: Instead of consumers bearing the full cost of new transmission lines, costs will be assigned based on who causes them. This encourages new power plants to be built in locations that utilize existing infrastructure, saving money for Albertans.
- Streamlining Interprovincial Connections: Alberta aims to enhance grid reliability by simplifying the process for building and maintaining connections with British Columbia and Saskatchewan.
- Implementing a Day-Ahead Market: Power generators will be required to commit their energy supply a day in advance, improving grid stability and reducing the risk of power outages.
These reforms aim to modernize Alberta’s electricity system to meet the growing demand for power while ensuring affordability and reliability for consumers.
“Albertans deserve a modern electricity system that prioritizes affordability and reliability,” says Affordability and Utilities Minister Nathan Neudorf. “As our electricity supply mix evolves so should our policies.”
The Alberta Electric System Operator (AESO) and the Market Surveillance Administrator (MSA) have been working with the government on these reforms. Legislation to support these changes is expected in the new year.
