IPPSA Intelligence

Alberta Electric System Operator

Updates from the Alberta Electric System Operator (AESO) focus on a number of issues. These include transmission enhancements and stakeholder engagement initiatives within Alberta's electricity market. Key dates for providing feedback on projects, including the Restructured Energy Market and the AESO Connection Process, are outlined to ensure stakeholder participation.

The AESO emphasizes the rising electricity demand, specifically noting the need for enhancements in the Fort McMurray area. It also flagged the requested connection of the Black Bear Combined Cycle Power Plant by Kiwetinohk Energy Corp. Additionally, an RFP has been issued for evaluation of the connection process with respect to Indigenous projects.

Ongoing redesign efforts of internal demand rates invite stakeholder comments, aiming to address current challenges effectively. Proposed amendments to the AESO Connection Process are tied to tariff redesign initiatives to improve efficiency and transparency.

The forthcoming deployment of an 18 MW biomass generator by Strathcona Resources Ltd. is scheduled for connection to the grid on May 15, 2025. 

Finally, the Genesee Repower units, GNR1 and GNR2, are set to undergo operational testing from June 21 to June 27, 2025, which is crucial for evaluating their performance and efficiency in the market. 

References:

1. Alberta Electric System Operator: Key Updates on Transmission Enhancements and Stakeholder Engagement
2. Strathcona Resources Ltd. to Launch 18 MW Biomass Generator: A Leap Towards Renewable Energy in Alberta
3. Genesee Repower Units Scheduled for Performance Testing: Enhancing Alberta's Energy Reliability

Solar East and West Engagement

A virtual hearing organized by the Alberta Utilities Commission (AUC) is set to gather public input on two significant solar power projects proposed near Oyen, Alberta. The initiatives, by UK Solar East Ltd. and UK Solar West Ltd., plan to establish large-scale solar plants that will generate a combined total of 430 megawatts of electricity over approximately 2,400 acres of cultivated land. The AUC aims to bolster public engagement and transparency by combining the review processes of the two projects, spurred by requests from local opposition groups.

References:

1. Public Engagement in Alberta's Solar Power Revolution: AUC Hearing on Oyen Projects

Stettler Solar Engagement

Stettler County is actively participating in an Alberta Utilities Commission (AUC) hearing for a proposed solar project by Stettler Solar Inc. This involvement underscores the role of local authorities in promoting clean energy while addressing community concerns, particularly regarding agricultural land use. The county has emphasized the need to advocate for its interests, particularly as the AUC's decisions can undermine local zoning laws, affecting agricultural priorities outlined in the county's Municipal Development Plan.

The hearing will review a proposal to utilize approximately 190 acres of farmland to generate 25 MW of power, paired with a 16 MW battery. Stettler County’s proactive engagement highlights the complexities of regulatory frameworks in energy projects and the necessity for local governing bodies to have a say in decisions that impact their environments and economies. The article indicates a growing trend where local authorities seek to balance energy development with the conservation of agricultural land and community interests.

References:

1. Stettler County Advocates for Local Interests in AUC Hearing for Proposed Solar Project

Canada’s Largest Battery Storage Launch

The Oneida Energy Storage Project has officially commenced commercial operations, becoming Canada's largest operational battery energy storage facility and one of the largest globally. Located in Haldimand County, Ontario, the 250 MW / 1,000 MWh facility was completed ahead of schedule and under budget by a partnership involving Northland Power Inc., Six Nations of the Grand River Development Corporation, NRStor Inc., Aecon Concessions, and the Mississaugas of the Credit Business Corporation. Oneida significantly enhances Ontario's already clean electricity grid, increasing the province's energy storage capacity and reliability, and is projected to reduce emissions by 1.2 to 4.1 million tonnes over its lifespan. The project, initially developed through an equal partnership between SNGRDC and NRStor, exemplifies successful Indigenous engagement in clean energy initiatives and received major funding from Natural Resources Canada and the Canada Infrastructure Bank, creating substantial local employment with strong Indigenous participation.

References:

1. Oneida Battery Storage Project Launches

Pembina Institute CDR Conference

The Pembina Institute's recent conference on carbon dioxide removal (CDR) emphasized the economic advantages such approaches can offer to local communities. Held on April 30, 2025, in Calgary, the event brought together various stakeholders to promote collaboration between community leaders and CDR developers. Key speakers, including Mayor Jean Barclay and Phil De Luna from Deep Sky, stressed that open-mindedness and proactive engagement are vital for developing successful partnerships. They highlighted the importance of two-way communication, where developers address community concerns while fostering excitement about CDR projects. The conference concluded that communities should seize the economic opportunities presented by CDR, enhancing their local economies while contributing to sustainability efforts. This focus on community involvement in environmental initiatives emphasizes broader implications for economic resilience and empowerment in the context of climate change.

References:

1. Empowering Communities through Carbon Dioxide Removal: Insights from the Carbon Catalyst Conference

Competitive Price on Carbon in Alberta

Suncor Energy's CEO, Rich Kruger, advocated for a competitive carbon price in Canada, emphasizing the need for balanced policy that doesn't disadvantage any sector. He argues for provincial regulation over the federal carbon levy, which he deems uncompetitive, while optimistic about private sector innovation to reduce emissions. As global oil demand fluctuates, Kruger sees potential for Canada to become an energy superpower through continued investment in oil and gas.

References:

1. Suncor CEO Advocates for Balanced Carbon Pricing to Enhance Canada's Energy Competitiveness

Spain and Portugal Work to Stabilize their Systems

Spain is grappling with grid stability issues following a significant blackout that affected both Spain and Portugal, attributed to multiple smaller power incidents leading up to the failure. Experts express concern that the increasing share of renewable energy may strain the power grid, raising questions about the balance between energy supply and demand. The need for a stable grid during the transition to renewable sources, alongside investigations into possible cyber attacks, highlights the complexities of energy management in modern power systems.

References:

1. Spain's Power Outage: The Impact of Renewable Energy on Grid Stability and Future Challenges

BC looks to IPPs and Indigenous Communities

British Columbia is shifting its energy strategy by inviting private investments for clean energy projects, primarily focusing on wind power, to address rising electricity demand. The government aims to increase electrical capacity by at least 25% over the next seven years while emphasizing the importance of Indigenous community participation in these projects. This strategic pivot underscores the urgency of expanding domestic energy production to reduce reliance on imports, particularly from the U.S., while ensuring sustainability.

References:

1. British Columbia's Clean Energy Strategy: Partnering with Private Sector and Indigenous Communities for a Sustainable Future

Reporting Progress After C-59

Ottawa's anti-greenwashing legislation, Bill C-59, continues to cause concern among Canadian companies about legal implications of environmental claims, with the Royal Bank of Canada reversing its sustainability goals due to perceived risks. While proponents argue the law encourages more honest communication, critics view it as a potential overreach that stifles essential discussions on sustainability. The tension underscores the need for clearer guidelines to help businesses navigate the evolving landscape of corporate environmental responsibility.

References:

1. Navigating the Tensions of Bill C-59: The Impact of Ottawa's Anti-Greenwashing Legislation on Corporate Sustainability in Canada

EPCOR Q1 Results

EPCOR Utilities Inc. has announced its Q1 2025 financial results, reporting a net income of $103 million, slightly down from $104 million a year prior, with a notable increase in Adjusted EBITDA to $289 million. The company launched its 2024 Sustainability Performance Update, underscoring its commitment to clean energy initiatives, safe water access, and relationship-building with Indigenous communities. EPCOR introduced a new fixed-rate electricity product aimed at stabilizing prices for residential and small commercial customers, reflecting proactive regulatory adjustments.

References:

1. EPCOR Reports Q1 2025 Financial Results While Advancing Sustainability Initiatives

Altalink Q1 Results

AltaLink announced its financial results for the first quarter of 2025, reporting a net and comprehensive income of $80.2 million, a decrease from $82.6 million during the same period in 2024. The decline primarily reflects lower revenue resulting from a reduced approved return on equity (8.97% compared to 9.28% in the previous year) and decreased recovery of interest expenses. Additionally, operational revenue fell by $13.2 million, mainly due to reduced salvage expense recovery and lower equity returns on rate base. The Alberta Utilities Commission's June 2024 decision, effective from January 1, 2024, to distribute site preparation costs over replacement assets' useful lives, also influenced revenue comparability. AltaLink's financial results, as a partnership, are reported before income taxes and therefore differ from typical corporate financial reporting. AltaLink also announced it’s support for Bill 52 which aims to maintain affordable electricity for ratepayers by optimizing existing infrastructure rather than constructing new transmission lines. 

References:

1. Ensuring Affordable Electricity: Alberta Government's Transmission Policy and AltaLink's Commitment to Optimization

TransAlta Q1 Results and Data Centre Expansion

TransAlta Corporation is pursuing partnerships to supply natural gas-fired electricity for data centers in Alberta, projecting significant changes in the energy landscape driven by high energy demands. The company's CEO emphasized strategic commitments to finalize agreements in 2025, reinforcing TransAlta's competitive edge in supplying 90% of these centers' energy needs. Alberta's government aims to attract $100 billion in AI investment, making TransAlta's involvement critical. Despite recent profit declines, the company's partnerships and financial strategies, such as its collaboration with Nova Clean Energy, aim for long-term growth. This trend indicates a shift towards energy-efficient practices in the tech sector, highlighting the intertwining of energy provision and emerging technological demands.

References:

1. TransAlta's Strategic Move: Powering Alberta's Data Centers with Natural Gas Partnerships

Fortis Q1 Results

Fortis Inc. reported strong financial results for Q1, with profits rising to $499 million, up from $459 million the previous year. Revenue also increased to $3.34 billion, fueled by the expansion of utilities and favorable currency exchange rates. This positive trend reflects Fortis's growth potential and positions the company well for future investments, indicating strong investor confidence and a solid foundation for ongoing expansion in the utility sector.

References:

1. Fortis Inc. Reports Strong Q1 Financial Results: Profit and Revenue Surge Reflect Growth Potential

Canadian Utilities Q1 Results

Canadian Utilities A reported a strong financial performance in Q1 2025 with adjusted earnings of $232 million, showcasing stability and a growth strategy centered on clean energy investments. The company is committing $5.8 billion over the next three years, with a significant portion directed towards enhancing natural gas transmission with the Yellowhead pipeline project. In Australia, regulatory changes that increased the Return on Equity to 8.23% are expected to stabilize tariffs and bolster investments through 2029. Despite robust cash generation of $637 million, regulatory challenges in Alberta and adverse pricing conditions in electricity generation could impact future earnings, particularly with a reduction in the allowable Return on Equity for 2025. The company is also facing construction delays at the Dow's Path2Zero project but remains confident about the Yellowhead timeline. It was also announced that the board of directors had appointed Nancy Southern Executive Chair and Bob Myles to CEO effective May 8.

References:

1. Canadian Utilities A: Balancing Strong Financial Health with Regulatory Challenges and Clean Energy Investments

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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.