On November 23, 2016, the Government of Alberta approved the restructuring of Alberta’s Energy Market from a fully deregulated regime to a hybrid system that will incorporate capacity payment mechanisms. This decision along with some key features of the Alberta Electric System Operator’s (the AESO) Wholesale Electricity Market Transition Recommendation Report are detailed in our recent blog post.
The AESO is designing and implementing an Alberta-specific capacity market. In order to leverage the experience and expertise of stakeholders in this process, the AESO is carrying out a Design Criteria & Engagement Process that is expected to … Continue Reading
Almost a year after the provincial government released its Climate Leadership Plan, it tabled the Renewable Electricity Act (Act) and released details on its Renewable Electricity Program (REP).
Consistent with the Alberta Electric System Operator’s (AESO) earlier indications and as discussed in previous posts, renewable electricity will include wind, solar, hydro, geothermal, and sustainable biomass projects. The REP is available to large scale renewable electricity generation (5 MW or greater total nominal capacity). Under the Act, the AESO will administer “a fair and competitive process” for REP proposals to incentivize renewable generation in the Alberta in … Continue Reading
On November 23, 2016, the Government of Alberta announced the restructuring of Alberta’s electricity market, from a fully deregulated regime to a hybrid system that incorporates capacity payment mechanisms.
Alberta is one of the few jurisdictions in the world with an “energy-only” market. This means that Alberta generators only recover the wholesale price of electricity. Investors are only able to recover invested capital if they can leverage high-priced hours, and in this way, the energy-only system contains the risk of supply instability and may not promote investment in generation facilities and, in particular, renewable energy sources.… Continue Reading