Alberta power market headed for shakeup as province commits to restructuring by 2027

A wind turbine is shown at a wind farm near Pincher Creek, Alta., Wednesday, March 9, 2016. THE CANADIAN PRESS/Jeff McIntosh

CALGARY -

Alberta's electricity market is headed for a major shakeup, and some industry players are fearful that a lengthy period of uncertainty could scare away badly needed investment in power generation.

Alberta Electric System Operator chief executive Mike Law confirmed in a speech at a power industry conference in Banff on Monday that his organization has been tasked by the provincial government with drafting the design for a restructured energy market by fall 2024.

He said the aim is to have new electricity market rules in effect in Alberta by 2027.

Alberta's electricity market is unique in Canada, in that it is a for-profit, deregulated system that pays generators only for the power they actually dispatch onto the grid and pays nothing for standby generating capacity.

Provincial Utilities Minister Nathan Neudorf said Monday the UCP government remains committed to that “energy-only” model, but significant reforms are needed to make the system work.

But the Canadian Renewable Energy Association says it is concerned about what it calls “prolonged and increasing uncertainty” for Alberta's renewable energy sector, which could make the province a less attractive place to invest.

This report by The Canadian Press was first published March 12, 2024.