IPPSA Intelligence

AESO

The AESO (Alberta Electric System Operator) Stakeholder Newsletter from May 21, 2025, highlights critical updates for stakeholders in Alberta's electricity market, emphasizing engagement in the Restructured Energy Market (REM) and other initiatives. Key dates for applications and feedback are outlined, particularly regarding REM participation and infrastructure upgrades, such as the Scotford 409S Substation. The AESO invites stakeholder feedback on proposed amendments to the connection process and new Transmission Planning (TPL) and System Operating Limits (SOL) standards. Engagement sessions are scheduled to allow stakeholders to influence the design and modeling processes of REM, fostering an inclusive approach to policy development in Alberta’s evolving energy landscape.

References:

1. Empowering Stakeholder Engagement: AESO's May 2025 Newsletter Highlights Key Updates for Alberta's Energy Market

NERC Alert

The North American Electric Reliability Corporation (NERC) issued a Level 3 Alert titled "Essential Actions for Inverter-Based Resource (IBR) Performance and Modeling," addressing significant reliability risks posed by resources like solar, wind, and battery storage systems connected to the Bulk Power System. This alert follows analyses of substantial, unexpected generation losses since 2016, revealing industry-wide deficiencies in modeling and predicting IBR performance during system disturbances. Transmission Owners, Transmission Planners, and Generator Owners are required to acknowledge receipt by May 27, 2025, and report implementation status by August 18, 2025, aiming to improve system resilience and inform future reliability standards.

References:

1. Essential Actions for Inverter-Based Resource Performance and Modeling

Nuclear Expansion

The U.S. nuclear industry is poised for major regulatory changes that aim to accelerate the construction of nuclear power plants, enhancing sustainability and energy security. The government plans to reduce the regulatory authority of the Nuclear Regulatory Commission (NRC), addressing long-standing challenges such as extensive approval processes and outdated regulations that have slowed industry growth. Bipartisan political support now exists for nuclear energy, recognizing its potential in combating climate change and achieving energy independence. Key objectives include enhancing nuclear exports, national security relating to nuclear armaments, and improving energy security. The shift of regulatory power to the Department of Energy (DOE) and the Department of Defense (DOD) is anticipated to streamline processes, benefiting private nuclear firms and fostering innovation, particularly in small modular reactors (SMRs). Experts predict that these changes could spark a "nuclear renaissance," significantly decreasing nuclear energy costs and enabling it to compete with alternative power sources.

References:

1. Revitalizing U.S. Nuclear Energy: Regulatory Reforms to Accelerate Construction and Enhance Sustainability

New Waste to Energy Project

The Alberta Utilities Commission has authorized Varme Energy to construct a facility designed to convert solid waste into energy using carbon capture and storage technology. Expected to process 150,000 tonnes of Edmonton's residential waste annually, this facility represents a significant step toward reducing landfill dependency and is projected to commence operations in 2028. With a capacity of 19.6 megawatts and a cost of $300 million, the facility aims not only to generate energy but also to capture emissions, potentially serving as a model for similar projects nationwide. The broader implications suggest advancements in waste management and energy production could contribute positively to carbon neutrality objectives in Canada.

References:

1. Alberta's New Waste-to-Energy Facility: A Sustainable Step Towards Clean Energy and Carbon Capture

Alberta Innovates

Recent budget cuts to Alberta Innovates, reducing its funding by one-third, raise concerns about continuing support for innovation and research crucial for innovation in the Province. These cuts have triggered anxiety among entrepreneurs regarding the agency's future direction, amidst leadership changes and significant restructuring. With a history of funding cuts limiting research opportunities, the uncertainty surrounding Alberta Innovates could hinder the province's capability to foster economic growth and innovate in energy sectors.

References:

1. Budget Cuts to Alberta Innovates: Implications for Innovation and Economic Growth

Red Deer MCC

The City of Red Deer is modernizing its electric utility through a proposed governance model transitioning to a municipally controlled corporation (MCC). This model aims to enhance operational flexibility while keeping the utility publicly owned. Key benefits of the MCC include improved agility, access to capital, and sustainability, allowing the utility to adapt to industry changes. Residents can expect a 2% increase in the distribution portion of their utility bills, a part of the financial implications outlined in the public business plan. Public engagement is a priority, with open houses and a public hearing planned to gather citizen feedback. This initiative represents a significant move toward enhancing the city's energy infrastructure and ensuring community involvement in local governance.

References:

1. Red Deer’s Electric Utility Modernization: A New Governance Model for Community Engagement and Sustainability

US SMR Progression

The Tennessee Valley Authority (TVA) has made history by submitting the first permit application in the U.S. for a small modular nuclear reactor, aimed at enhancing the country's clean energy capabilities. This initiative is part of a broader strategy to meet the projected 26 gigawatts power demand by 2035 due to population growth and reduced fossil fuel reliance. The Clinch River site in Oak Ridge, Tennessee, is proposed for the reactors, which could supply energy to around 175,000 homes and potentially commence operations by 2032.

References:

1. Tennessee Valley Authority Pioneers Nuclear Energy with Small Modular Reactor Permit Application

Public Policy Forum Report

Canada is set to mobilize $1.1 trillion by 2035 through major energy, critical minerals, and infrastructure projects, a report from the Public Policy Forum states. The report emphasizes improving collaboration between public and private sectors, expediting regulatory processes, and involving Indigenous communities in economic activities to facilitate this ambitious investment initiative. The anticipated projects span various sectors, including electricity, oil and gas, and decarbonization technologies, with an estimated economic growth potential of up to 4.5% in GDP. A recommendation includes establishing a Strategic Investment Office and streamlining regulatory approvals to prioritize nation-building projects. This comprehensive approach aims to position Canada favorably in the global energy market while advancing economic recovery and sustainability.

References:

1. Canada's $1.1 Trillion Vision: Accelerating Investment in Energy and Infrastructure by 2035

Western Premiers Meet

Western premiers convened in Yellowknife focusing on energy security, trade, and infrastructure. Key discussions included Arctic sovereignty, the need for new pipelines advocated by Alberta’s Premier Smith, and concerns over western separatism expressed by Premier Eby. Nunavut's Premier Akeeagok emphasized the importance of Arctic infrastructure projects to boost economic potential, while Saskatchewan's Premier Moe urged for better carbon regulation negotiations and tariff reductions on agriculture exports to China. The meeting reflects ongoing tensions regarding provincial autonomy, prioritizes infrastructure development in the Arctic, and highlights regional discontent.

References:

1. Western Premiers Convene in Yellowknife: Tackling Energy, Trade, and Infrastructure Challenges

AtkinsRealis Results

AtkinsRealis Group Inc. has reported a remarkable 52% increase in profits, attributed largely to its booming nuclear projects. The company's nuclear segment alone saw a 77% rise in revenue year-over-year, totaling $538 million, contributing to an overall profit of $70.6 million in the last quarter. The firm has significantly raised its revenue projections for 2025, now expecting earnings between $1.9 billion and $2 billion. With a record backlog of $5.25 billion in nuclear contracts, including notable projects in Ontario and Romania, AtkinsRealis is well-positioned for future growth. CEO Ian Edwards noted that while external economic pressures exist, especially regarding global trade, the firm remains strategically insulated from tariffs, leveraging strong demand in the nuclear sector.

References:

1. AtkinsRealis Sees Financial Surge Driven by Nuclear Projects: A Bright Future Ahead

German Nuclear Shift

Germany has recently shifted its position regarding nuclear energy, now supporting its classification as a green energy source under Chancellor Friedrich Merz. Previously, the country resisted this perspective under former Chancellor Olaf Scholz, resulting in a strategy to phase out nuclear energy after the Fukushima disaster in 2011. The new stance comes amid concerns over energy security following the Russian invasion of Ukraine, which led to the shutdown of Germany’s last three nuclear reactors in April 2023. This policy change may streamline EU legislative processes around energy and enhance collaboration between Germany and France, potentially influencing other EU countries exploring nuclear energy like Denmark and Italy. However, divisions remain, particularly with Austria opposing nuclear energy's green classification.

References:

1. Germany's Nuclear Energy Policy Shift: A New Era for EU Energy Legislation

SaskPower Nuclear Ambitions

Saskatchewan is set to showcase its nuclear energy potential at the World Nuclear Supply Chain Conference in Warsaw, led by Minister Jeremy Harrison. The province aims to strengthen ties with global stakeholders to attract investments in its small modular reactor (SMR) industry. Notably, Saskatchewan boasts the world's highest-grade uranium deposits, producing all of Canada's uranium and being the second-largest producer globally, with record sales of $2.6 billion expected in 2024. The Saskatchewan government is also investing in supply chains and workforce development, collaborating with local suppliers and selecting the GE-Hitachi BWRX-300 SMR design for future deployment. These initiatives highlight Saskatchewan's commitment to contributing to global energy security and the nuclear energy capacity target of triple expansion by 2050.

References:

1. Saskatchewan Showcases Nuclear Energy Ambitions at Global Conference in Poland

Westinghouse MOU

Westinghouse Electric Company has signed a memorandum of understanding (MoU) with the Pabineau and Eel River Bar First Nations to advance nuclear energy initiatives, particularly focusing on small modular reactor (SMR) technology. This collaboration signifies a commitment to clean energy deployment at the Port of Belledune, with the aim of benefiting the local economy and fostering community empowerment. The partnership is set to explore the integration of energy storage solutions alongside nuclear projects, marking a dual focus on innovative technologies. Key local partnerships, such as those with the Belledune Port Authority and New Brunswick Power, will aid in the development process. Indigenous leaders have expressed optimism regarding the initiative, seeing it as a potential driver for long-term economic growth and environmental sustainability within their communities.

References:

1. Empowering Indigenous Communities: Westinghouse's Groundbreaking MoU to Advance Nuclear Energy at Port of Belledune

RIO Tinto Modernization Plans

A significant investment by Rio Tinto PLC is planned, amounting to $1.7 billion, aimed at modernizing the Isle-Maligne hydroelectric power plant in Quebec. This facility, over 99 years old, plays a crucial role in supplying power to the company’s aluminum smelters. The investment is the largest seen since the 1950s and underscores a commitment to sustainability and modernization in the face of changing market conditions, particularly U.S. tariffs on aluminum imports. The U.S. administration's 25% tariff on imported aluminum has prompted Canadian producers to reassess their strategies. Rio Tinto’s modernization efforts align with the necessity to enhance low carbon aluminum production capabilities, thereby ensuring competitiveness in both Canadian and U.S. markets. Despite challenges from the tariffs that have led some aluminum producers to cut back on production and jobs, raw aluminum shipments remain resilient.

References:

1. RIO Tinto Modernization Plans

Nova Scotia Offshore Wind

Offshore wind energy in Nova Scotia presents a promising yet challenging opportunity for renewable energy development, drawing historical parallels to the province's prominence during the Age of Sail. The proposed Nova East Wind project aims to establish Canada's first offshore wind farm, with expectations to generate 400 megawatts from 20 or more floating turbines. The provincial government is targeting an ambitious five gigawatts of offshore wind capacity, far exceeding current consumption, potentially facilitating hydrogen production and export. Despite favorable wind conditions, past offshore projects have met with failures, highlighting infrastructure gaps such as inadequate port facilities. The transition to offshore wind is projected to significantly bolster the provincial economy, adding approximately $10 billion to GDP.

References:

1. Nova Scotia Offshore Wind

Shooting Investigation at ATCO Substation

An investigation is underway following a shooting incident at an ATCO electric substation near the Alberta-Saskatchewan border, resulting in significant electrical disruptions and environmental consequences. The early morning incident caused a power outage affecting over 2,500 residents and led to an oil leak of approximately 20,000 litres when a bullet struck an oil tank. The Royal Canadian Mounted Police (RCMP) confirmed the damage, with preliminary cost estimates for the incident and subsequent cleanup reaching around $1.1 million. This event raises alarming concerns regarding public safety and the vulnerabilities of critical infrastructure. It could prompt discussions about enhancing security measures at energy facilities and might impact public trust in the electricity market.

References:

1. RCMP Investigate After Shooting at ATCO Substation

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.