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Power transmission lines are seen with the Rocky Mountains in the background near Pincher Creek, Alta., Thursday, June 6, 2024. Jeff McIntosh/The Canadian Press Alberta has introduced a ream of changes to its electricity system aimed at attracting badly needed investment and limiting the need for costly new infrastructure, the first major step in overhauling the entire power market structure.
The legislation, tabled Thursday, aims to smooth the way for upcoming changes in the Restructured Energy Market (REM), which is being developed at the behest of Premier Danielle Smith’s government. The objective of the REM is to ensure affordability and reliability after years of volatile prices and recent shortages that led to provincewide outages and pleas for consumers to power down, the government says. Utilities Minister Nathan Neudorf said Thursday that Bill 52 is designed to pave the way for a utility system that can meet growing demand in an affordable way.
If passed, he said, it would help reduce congestion on existing transmission lines, limit the need to build expensive new infrastructure and create incentives for new investment. “Alberta’s population and economy continue to grow, and we need to ensure that Albertans have the utilities they need to provide for their families, power their businesses and communities,” he said. Mr.
Neudorf said the intent of the bill is to clarify utility rules to ensure power generation is built more efficiently, in places where it is needed most and can optimize infrastructure that already exists. The REM is not yet finalized, but wind and solar generators say the changes being considered fail to address shortages of capacity on parts of the Alberta grid that hamper their ability to deliver all the power they produce. Renewables companies say the REM – coupled with a 2023 seven-month moratorium on new renewable power development and a ream of new restrictions since imposed on the industry – are undermining investor confidence in what was once a multibillion-dollar industry in the province.
Mr. Neudorf said Thursday that he is extremely confident in the work that the Alberta Electric Systems Operator (AESO) has done on the REM that will allow renewables to develop “in the right place that benefits Albertans and our industry to the greatest degree.” The renewables sector will continue to grow even under the REM, he said, but development will be “more thoughtful and considered, rather than just rampant with no rules.
” Alberta’s power market is unique in Canada in that it has no central or Crown power provider. Instead, private companies run the power plants that feed electricity into the grid. The AESO works with industry and the government to manage and plan that market.
Increased pressure on Alberta’s grid saw it almost fail twice last year. In an August report , the province’s electricity watchdog attributed the near-catastrophes to widespread problems, including inaccurate wind-power supply forecasts by the AESO, significant power exports to other jurisdictions and multiple natural-gas-fired power plants all being offline at the same time. The Market Surveillance Administrator recommended improving forecast data and transparency, and devoting sufficient resources to identify instances of suspected compliance contraventions by power generators.
The MSA also called for generators to have better reasons to take their power plants offline – and for those reasons to be routinely audited by the AESO. If passed, Thursday’s legislation will also remove barriers for blending hydrogen into natural gas systems. And it will ensure only Albertans who receive hydrogen-blended natural gas in their homes and businesses will pay for any additional system costs, the government said.
Alberta is the largest hydrogen producer in Canada, and Mr. Neudorf said the change would help boost the economic opportunities presented by the sector, while making sure consumers don’t foot the bill. The legislation would also increase the number of board seats at the Alberta Petroleum Marketing Commission from seven to 13.
Government officials said the change would boost the range of expertise on the APMC board and allow for more robust governance as it develops new programs such as the bitumen royalty in-kind and a proposed gas royalty in-kind. The APMC is charged with maximizing the value of Alberta’s petroleum resources..
