IPPSA Intelligence

AESO Weekly Update

The AESO Stakeholder Newsletter dated April 23, 2025, provides updates and deadlines vital to stakeholders in Alberta's electricity market. Key deadlines include the submission dates for Transmission Must-Run proposals, feedback on the Optimal Transmission Planning (OTP) Framework Options Paper, and stakeholder sessions regarding demand rates. Engagement in the OTP and Transmission Reliability Planning (TRP) initiatives promotes improved transmission planning and reliability.

The newsletter also addresses operational issues, such as the non-operational status of the 840S McNeill Converter due to maintenance, which affects energy flow between Alberta and Saskatchewan. Furthermore, updates on internal demand rates and compliance efforts inform stakeholders about ongoing work to refine service studies and improve reporting standards.

Active participation from stakeholders is emphasized as critical for guiding AESO's planning and operations. The report underscores the importance of compliance and transparency, noting how these elements are pivotal in maintaining the reliability of Alberta's electricity supply. 

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Capital Power Share Offering

Capital Power has successfully closed a significant $667 million common share offering, which will fund future acquisitions and expand its presence. This offering included the sale of over 11.9 million shares, with part of the proceeds allocated to acquiring key natural gas facilities such as Hummel Station and the Rolling Hills plant. The fundraising effort, backed by major underwriters including TD Securities and CIBC Capital Markets, reflects strong investor confidence in the company’s strategy to enhance its energy portfolio. While the completion of the share offering was not contingent upon these specific acquisitions, the funds will also be used for debt reduction and further investments in development projects within the clean energy landscape.

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AESO IT RFP

The Alberta Electric System Operator (AESO) is seeking proposals for comprehensive Data Management and Artificial Intelligence (AI) services to support its strategic data initiatives under the Restructured Energy Market framework. This five-year engagement requires a partner proficient in data governance, data warehousing, and AI, leveraging Microsoft Fabric, Purview, Power Platform, and AI/ML technologies. The successful bidder will provide strategic guidance, technical execution, and industry-aligned best practices to create a secure, scalable, and well-governed data ecosystem. The initiative's goal is to drive operational efficiency, enhance data-driven decision-making, and maintain compliance with industry standards. Responses are due by April 28, 2025.

Alberta Waste to Hydrogen Innovation

Alberta is taking significant steps towards becoming a leader in hydrogen production by investing $3 million from the Technology Innovation and Emissions Reduction (TIER) fund to support a new project aimed at transforming forestry waste into clean hydrogen fuel. Spearheaded by Hydrogen Naturally, a Calgary-based company, the initiative will convert woodchips and sawdust into hydrogen while capturing and storing the carbon emissions produced, aligning with environmentally responsible practices. Key stakeholders emphasize the project's dual focus on job creation and economic diversification, while stressing the critical role of technological innovation. Alberta's existing infrastructure and skilled workforce position it effectively for success in this growing energy sector. The hydrogen market holds immense potential, projected to exceed $2.5 trillion annually by 2050, with Alberta already recognized as Canada's largest hydrogen producer. 

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US Federal and State Energy Tensions

Earlier this month President Trump signed an Executive Order that emphasizes the Administration's commitment to promoting American energy dominance by removing unlawful barriers imposed by State and local governments on domestic energy development, including oil, natural gas, coal, nuclear, and renewable resources. It criticizes state-level climate change regulations, carbon penalties, and other environmental policies, specifically targeting laws enacted by New York, Vermont, and California as examples of ideologically driven actions harming national security, economic stability, and interstate commerce. To counteract these state actions, the order instructs the Attorney General to identify unconstitutional or federally preempted state laws—especially those related to climate initiatives, ESG policies, and carbon taxation—and to take immediate legal action against them. The Attorney General must report on these efforts within 60 days and propose further presidential or legislative measures necessary to safeguard the Administration's energy policy goals.

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Alberta’s AI Vision

Alberta, historically overshadowed by Ontario, Quebec, and B.C. in attracting data centres due to a number of issues, is now emerging as a significant destination for new artificial intelligence data centres, driven by rapid global demand for computational power. However, the surge in data centre proposals, driven primarily by power-intensive AI computing, poses major challenges, particularly as Alberta aims to rely heavily on its abundant natural gas supplies rather than renewable sources. The expansion raises significant environmental concerns, potentially reversing Alberta’s recent emissions reductions achieved by eliminating coal-fired power plants. Although some operators consider carbon capture and storage as a solution, widespread adoption remains uncertain due to costs and technological hurdles. This "land grab" for data centre infrastructure underscores the ongoing tension between economic opportunities provided by the AI industry and the critical need to maintain climate commitments. Alberta’s approach prioritizes rapid infrastructure development, deferring solutions to environmental challenges.

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Battery Technology

Innovative clean energy solutions are emerging through the development of saltwater batteries for energy storage, led by Keith Cleland and his startup, Aqua-Cell Energy Inc. Saltwater batteries, a product of Cleland's work during his studies, provide a cost-effective and environmentally friendly alternative to traditional lithium batteries. Utilizing a flow battery system, these batteries store electricity by pumping saltwater through a circuit and can deliver long-duration energy storage for up to 12 hours, catering to industrial and commercial needs. The startup has gained momentum through partnerships with institutions like the Northern Alberta Institute of Technology and has received significant funding of $500,000 from Alberta Innovates and other organizations. 

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Manitoba Arctic Port and Hydroelectric Corridor

Manitoba is actively working on developing a second Arctic port and a hydroelectric corridor, driven by the need to diversify trade routes amidst growing tensions with the U.S. The proposed second port near Nelson River is aimed at enhancing shipping capabilities and alleviating reliance on the limited Churchill port, which is seasonal and environmentally sensitive. Premier Wab Kinew emphasizes the importance of alternative export options to strengthen Manitoba's position internationally. The initiative includes the Kivalliq Hydro-Fibre Link, a significant project that will supply hydroelectric power and broadband services to remote communities in Nunavut, supporting economic development, energy security, and Indigenous-led initiatives. The involvement of the Inuit-owned Nukik Corporation and the secured federal funding for preliminary work reflect a commitment to community engagement and sustainable practices. These projects are poised to create wider economic benefits not just for Manitoba but for Canada as a whole, aiming for greater economic independence through enhanced trade capabilities and energy infrastructure. Overall, the developments reinforce a strategic approach toward embracing change in trade dynamics while prioritizing energy security and Indigenous collaboration.

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New Brunswick Pivots on Nuclear Strategy

New Brunswick remains interested in small modular nuclear reactors (SMRs) for future power generation but may shift towards more conventional reactor models and delay construction beyond its original 2030 target. Energy Minister René Legacy indicated that while SMRs are appealing due to their suitable scale, the province is reevaluating partnerships previously established with innovative but inexperienced firms, ARC Clean Technology and Moltex Energy, due to funding and technological challenges. New Brunswick is now considering reactors already pursued by other provinces, such as GE Hitachi’s BWRX-300, Westinghouse’s AP300, and even larger conventional Candu reactors. Legacy emphasized that fiscal realities, alongside recent federal support for alternative renewable projects, have granted the province flexibility, although decisions must be made soon to replace aging infrastructure by 2035.

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IESO’s Planning Outlook

The IESO released its annual planning outlook. Ontario’s electricity system growth must accelerate rapidly over the next 25 years to meet unprecedented increases in demand driven by economic growth, electrification, and technological advancements. The Independent Electricity System Operator (IESO) anticipates net annual energy demand rising by 75% to reach 262 TWh by 2050, outpacing previous forecasts. This growth, averaging a 2.2% annual increase, is primarily fueled by electric vehicles, artificial intelligence data centers, electrification initiatives, and population expansion. Ontario is expected to become a dual-peaking system by 2030 due to greenhouse lighting and EV charging. The IESO is addressing this demand through substantial infrastructure investments, including new generation resources, storage expansions, nuclear refurbishments, and capacity-sharing agreements. Planned procurements aim to secure significant new energy and capacity resources by the early 2030s, including small modular reactors and potentially large-scale hydroelectric projects. Additionally, robust energy efficiency programs will continue to play a key role, delivering substantial energy savings throughout the forecast period.

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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.