By MorinvilleNews.com Staff
Alberta’s government has announced updates to the province’s electricity market rules, which it says aim to balance affordability, reliability, and sustainability. These changes are part of a broader effort to modernize the system to meet increasing demands while maintaining Alberta’s competitive electricity market.
Minister of Affordability and Utilities Nathan Neudorf highlighted the importance of the reforms, stating, “Albertans deserve a modern electricity system that prioritizes affordability and reliability. As our electricity supply mix evolves so should our policies, and these updates to transmission policies are essential to ensuring Albertans are well-served by our electricity system for years to come.”
Alberta’s electricity grid was initially designed for several baseload power plants. However, the 2016 accelerated coal phase-out led to challenges, including increased reliance on intermittent renewable energy sources and higher consumer costs. To address these issues, Alberta’s government is introducing what it says is a cost-causation model for new transmission infrastructure. This change ensures that costs are distributed based on usage, incentivizing power plants to utilize existing infrastructure and reducing expenses for consumers and businesses.
The government says it is also working to improve inter-jurisdictional connections with British Columbia and Saskatchewan. These updates aim to restore existing connections and streamline processes for infrastructure upgrades, improving grid reliability and reducing red tape.
Another significant change is the introduction of a day-ahead electricity market. This system requires power generators to commit their supply a day in advance, improving the grid’s ability to respond to power fluctuations and reducing the risk of grid alerts. Derek Olmstead, Administrator and CEO of the Market Surveillance Administrator, noted, “Market design features like a day ahead market can help significantly reduce the likelihood of future grid alerts and will ensure that all necessary generators needed to meet electricity demand are online to provide power.”
The UCP say that over the past three years, the Alberta Electric System Operator has engaged extensively with industry stakeholders on these reforms. Aaron Engen, President and CEO of AESO, described the updates as a result of significant consultation and collaboration with industry and government.
Minister Neudorf has formally communicated these decisions to AESO, providing further guidance on the Restructured Energy Market. Supporting legislation is expected in the new year. Until then, temporary measures enacted earlier in 2024 will remain in place to ensure stable utility bills and reliable power for Albertans.
