April 18, 2025

IPPSA Intelligence

Alberta Electric System Operator

In Alberta's evolving energy landscape, significant updates are being introduced to enhance power generation and market efficiency.

There is a planned capacity increase for the Raymond Reservoir from 21 MW to 25.9 MW, effective April 4, 2025, underscores efforts to meet rising energy demands and improve supply stability.

Concurrently, advancements in the Energy Trading System (ETS) will emerge, with new Unit Commitment Directives (UCD) reports being implemented from April 16, 2025. These updates aim to enhance transparency and operational efficiency in the electricity market, allowing stakeholders better data for decision-making.

Furthermore, the Alberta Electric System Operator (AESO) is focusing on wind and solar power integration with a centralized forecasting system. This initiative not only improves resource utilization but also addresses grid reliability amidst the challenges posed by renewable energy variability.

This weeks newsletter from the Alberta Electric System Operator (AESO) highlights crucial updates and deadlines for stakeholders in the electricity sector. Key dates include April 25 for various program proposals, May 5 for stakeholder submissions, and other significant deadlines leading up to June 27. A strong emphasis on engagement is noted, particularly regarding Optimal Transmission Planning (OTP) and Transmission Reinforcement Payment (TRP) sessions.

New tools, such as the PSS/E dynamic model performance test bench, are introduced to streamline review processes for energy submissions. Overall, the newsletter emphasizes ongoing stakeholder involvement and proactive measures by the AESO to continue transparency and collaboration in Alberta's energy market.

References:

1. Enhancing Energy Supply: Raymond Reservoir Capacity Upgrade in Alberta
2. Enhancing Transparency: Key Updates to Alberta's Energy Trading System Unit Commitment Directives Report
3. Harnessing Renewable Energy: Advancements in Wind and Solar Forecasting for Alberta's Grid Reliability
4. AESO April 2025 Newsletter: Key Updates and Stakeholder Engagement in Alberta's Electricity Sector

Government of Alberta Grants

Alberta's government is allocating $72 million to enhance the competitiveness of local industries by supporting technology upgrades and reducing operational costs. This funding includes $65 million for the Industrial Transformation Challenge, which targets sectors such as forestry, energy, agriculture, and manufacturing to improve efficiency and reduce environmental impacts, managed by Emissions Reduction Alberta. Additionally, $7 million is designated for projects aimed at reducing methane emissions within the energy sector, funding companies that focus on innovative solutions to cut methane venting and lower operational costs. Alberta's commitment to responsible energy development showcases a strategic approach to innovation that not only enhances competitive positioning in global markets but also facilitates environmental management, indicating an ongoing reduction of methane emissions by 52% since 2014.

References:

1. Alberta's $72 Million Investment: Driving Technological Innovation and Competitiveness in Key Industries

Federal Election Platform Highlights

The 2025 Canadian federal election has brought forward significant energy-related proposals from major political players, primarily the Liberal Party (led by Mark Carney) and the Conservative Party (led by Pierre Poilievre). The Liberals emphasize infrastructure development, a streamlined regulatory framework, and a shift in carbon pricing strategies aimed at promoting greener consumer choices. They propose a $5 billion Trade Diversification Corridor Fund and reforms in workforce training.

In contrast, the Conservatives focus on reducing regulations, including repealing carbon pricing and existing environmental legislation, and propose creating a 'Canada First' National Energy Corridor. Both parties recognize the importance of involving Indigenous communities in energy project approvals. This electoral debate reflects broader economic strategies tied to job creation and climate adaptation, signaling critical decisions that will shape Canada's energy transition and economic resilience.

References:

1. Energy Policy Promises: A Comparative Analysis of the Liberal and Conservative Parties in the 2025 Canadian Federal Election

Energy Alberta Submits Nuclear Proposal

Energy Alberta has submitted an initial project description for a proposed Nuclear Power Station in the Peace River region. This project aims to generate up to 4,800 megawatts of electricity and involves intensive regulatory procedures and public consultations. With CEO Scott Henuset highlighting the transformative potential of nuclear energy for Alberta’s electricity landscape, the initiative marks a notable investment upwards of $40 billion and aligns with the federal government's net-zero emissions target by 2050. The use of Canadian-designed Candu Monark reactors is planned. Challenges related to public perception and financing remain points of discussion as Alberta navigates its energy future.

References:

1. Reviving Nuclear Ambitions: Energy Alberta's Vision for the Peace River Power Project

Moltex Parent Insolvency

The British parent company of Moltex Energy Canada Inc., a developer of small modular reactors (SMRs) in New Brunswick, is up for sale due to insolvency, casting uncertainty on its Canadian operations. Moltex Energy Ltd., based in the U.K., has entered an administration process to facilitate asset sales, with offers due by May 7. Its Canadian arm, which is developing the Stable Salt Reactor-Wasteburner and a fuel reprocessing plant with NB Power, is not part of the insolvency but has been financially stalled due to the parent company's shareholder decisions. Both Moltex and its fellow SMR partner ARC Clean Technology have faced delays and funding challenges, with neither likely to meet their original 2030 timelines. Despite initial government enthusiasm and federal funding, most SMR projects in Canada have struggled, with only Ontario Power Generation’s Darlington project showing concrete progress.

References:

1. Navigating Financial Turmoil: The Future of Moltex Energy and Small Modular Reactors in Canada

Yukon Power Supply

The Yukon Legislative Assembly experienced significant operational disruptions due to a partial power outage caused by an electrical system failure. The assembly's outdated electrical system, dating back to the 1970s, is near maximum capacity, exacerbated by modern technological demands. Immediate repair plans include replacing malfunctioning components and adopting preventive measures, such as turning off non-essential lights, to avert future incidents. This situation highlights the critical need for infrastructure upgrades in governmental institutions to maintain efficient operations and cope with increasing demands.

References:

1. Power Outage Disrupts Yukon Legislative Assembly: Implications for Infrastructure and Governance

Manitoba Hydro Strategy Shift 

Manitoba has announced a strategic decision to reprioritize its hydro energy, redirecting power originally intended for U.S. exports to satisfy local demands. This policy shift, led by Premier Wab Kinew, is indicative of rising energy security concerns and aims to enhance national sovereignty. To support this new focus, Manitoba is advocating for improved trade corridors to bolster local energy distribution, which may lead to shifts in energy pricing and market dynamics in both Manitoba and across Canada. Enhanced infrastructure is expected to support increased availability of hydro energy for local consumers, reflecting a broader trend towards energy independence and sustainability. The implications of this change signal a potential transformation in energy policies throughout the country, as provinces adapt to fluctuating international energy markets.

References:

1. Manitoba's Energy Strategy Shift: Prioritizing Domestic Needs Over U.S. Exports

CER Concerns

Maureen McCall argues that Canada's Clean Electricity Regulations (CER) aim to achieve a net-zero electricity system by 2035, yet they do not adequately account for a looming surge in electricity demand driven by technologies such as artificial intelligence (AI). If all proposed data centers are realized, they could consume about 14% of the country’s electricity by 2030, particularly impacting provinces like Alberta and Saskatchewan, which challenge the federal mandate as overstepping constitutional authority. Historical reliance on hydroelectric power faces limitations due to lack of suitable sites for new dams, and alternative energy sources like solar and wind require extensive timelines for deployment. The article proposes dismantling the CER to enhance provincial autonomy, accelerating transmission project approvals, and establishing a low-interest loan program for infrastructure to meet future energy demands. It emphasizes that without prompt policy interventions, Canada risks rising electricity costs and potential blackouts, threatening economic stability and prompting businesses to seek more reliable energy solutions elsewhere.

References:

1. Navigating Canada's Clean Electricity Regulations: Balancing Demand and Supply for a Sustainable Future

NB Power Review

New Brunswick Premier Susan Holt has announced a comprehensive independent review of the province’s heavily indebted utility, NB Power. A three-person panel will assess the utility’s operations, gather public input, and recommend changes, with all options on the table due to rising customer power bills and the utility’s $5-billion debt. The review, which begins public engagement in June and concludes by March 2026, will focus on fiscal sustainability, governance, customer expectations, and strategic partnerships. While a temporary 10% power rebate was introduced in January, Holt emphasized the need for long-term affordability and structural reform, noting that previous governments have avoided addressing NB Power’s deep-rooted challenges.

References:

1. Soaring Power Rates Forcing New Brunswick to Consider All Options

Ontario Grid Planning

A recent survey for the Ontario Energy Board revealed that most of Ontario’s electricity utilities have yet to fully assess how climate change could endanger the power grid, despite growing threats from extreme weather. While some progress has been made in improving grid resilience, few utilities conduct climate vulnerability assessments that combine historical data with future projections to identify and address weak points in their infrastructure. Major outages from storms like the recent ice storm have highlighted the need for proactive planning, which experts say could significantly reduce future damage costs.

References:

1. Strengthening Ontario's Electrical Grid: The Urgent Need for Climate Risk Assessments and Resilience Planning

Capital Power Expands to PJM

Capital Power Corporation is enhancing its standing in the North American electricity market through the strategic acquisition of Hummel Station and Rolling Hills Generating plants, totaling approximately CAD$3 billion. This acquisition, set to close in Q3 2025, adds 2,147 MW of natural gas capacity and positions Capital Power among the top five independent power producers in the region. The move aligns with its diversification strategy to avoid market dominance and ensures robust financial health through a $500 million share offering. The transaction is seen as immediately beneficial for earnings and supports long-term growth ambitions, reflecting the company’s commitment to enhance reliable power delivery while meeting evolving energy demands.

References:

1. Capital Power's Strategic Acquisition: Strengthening Its Position in North America's Energy Market

Solar and Reclaimed Well Sites

An Alberta government report proposes the installation of solar energy projects on old oil and gas well sites to mitigate cleanup costs, which could provide both economic and environmental advantages. However, this has sparked criticism as it may undermine existing pollution control policies and the "polluter pays" principle, raising concerns over companies shirking financial responsibility for cleanup. Stakeholders argue that the focus appears too favourable to oil and gas interests, potentially compromising environmental standards and accountability. The effectiveness of the proposed strategies remains uncertain, with an estimated $36 billion in cleanup liabilities in the province, emphasizing the need for clear and sustainable energy policies.

References:

1. Navigating the Tension: Alberta's Proposal for Solar on Oil Sites Sparks Debate on Environmental Responsibility

Data Centre Denial 

The recent decision by the U.S. Federal Energy Regulatory Commission (FERC) to deny Amazon's request for increased power usage at its Pennsylvania data center linked to the Talen Energy nuclear plant reflects significant trends in energy regulation amidst the rising power demands of technology companies. FERC's ruling emphasizes concerns over power supply reliability and public cost implications, with Talen's request for over 300 megawatts being rebuffed despite claims of the center's potential to utilize almost 1,000 megawatts. This situation highlights the tension between the rapid technological advances, particularly in artificial intelligence, and existing regulatory frameworks. Talen Energy plans to legally challenge the decision as FERC evaluates broader policies for co-located power arrangements to accommodate the growing trend of data centers seeking direct energy sources rather than relying on traditional grid connections. Overall, the outcome of this case could shape future energy policies to balance technological growth with sustainability and public interest.

References:

1. FERC Blocks Amazon Data Center's Power Increase Amid Energy Supply Concerns

US Access to Batteries

Khuram Hussain argues that recent U.S. trade policies—particularly Donald Trump's proposed steep tariffs on Chinese battery storage cells—threaten to derail America's clean energy transition by undercutting access to the battery technology essential for renewable power. With over 90% of U.S. battery storage currently sourced from China and domestic production still reliant on Chinese components, the tariffs could trigger shortages, drive up energy costs, and stall critical grid upgrades. At the same time, dismantling the Inflation Reduction Act and scaling back support for renewable infrastructure sends mixed signals to investors and weakens America’s position in the global race for energy leadership.

References:

1. The Impact of Proposed Tariffs on U.S. Clean Energy: A Threat to Battery Storage and Energy Independence

BC LNG Net Zero

The B.C. government has relaxed its net-zero greenhouse gas emission rules for liquefied natural gas (LNG) projects like the Ksi Lisims LNG, allowing them to be "net-zero ready" by 2030 instead of fully net-zero, due to delays in expanding clean hydroelectric power. Ksi Lisims, backed by the Nisga’a Nation, plans to eventually use hydroelectricity for operations but will initially rely on natural gas-powered turbines. LNG projects must still show credible plans using the best technology to reach net-zero, including for parts not reliant on electricity, and may use carbon offsets. While several LNG projects in B.C. have received approvals or are under review, clean energy supply remains limited, raising concerns among environmental groups.

References:

1. British Columbia Eases Net-Zero Emissions Rules for LNG Projects Amid Hydroelectricity Concerns

IPPSA's Mandate

IPPSA's mission is to convene industry, providing information, resources, and a forum for knowledge sharing, and to create opportunities for dialogue, collaboration, and education. This newsletter is meant to inform members but not advocate for specific outcomes. We always appreciate your feedback at info@ippsa.com.