IPPSA Intelligence

AESO this Week

The AESO outlined the complexities related to connecting large load projects, particularly data centres, to the Alberta electricity grid. The AESO is addressing the unique technical challenges these projects present while ensuring the reliability and affordability of energy supply.

Key Trends and Developments:

• Challenges of Large Loads: Data centres can significantly strain the energy supply, complicating grid management. The AESO must adapt to these demands to maintain grid reliability.
• New Connection Requirements: Updated information requirements have been established for data centres, focusing on specific characteristics to streamline access to the grid.
• Connection Process Updates: There's an increasing demand for data centre connections, prompting the AESO to improve transparency and refine the connection process for better stakeholder communication.

The AESO's proactive approach to refining its protocols is essential in managing the increasing integration of large load projects. As data centre applications surge, these developments indicate a significant shift in Alberta's energy landscape, impacting the overall infrastructure and supporting economic growth while ensuring environmental sustainability.

The AESO Stakeholder Newsletter from May 28, 2025, delivers important updates on Alberta's evolving energy landscape. Key trends and developments include the ongoing design of the Restructured Energy Market (REM), with crucial engagement opportunities set for the period from May 29 to June 21. The newsletter outlines significant events such as information sessions on REM modeling, large load integration, and a stakeholder survey on the Rate of Change of Frequency (RoCoF).

Several initiatives are highlighted, notably the Optimal Transmission Planning (OTP) and Transmission Reliability Planning (TRP) engagement, as well as the draft for a Climate Resiliency White Paper aimed at developing strategies for enhanced climate resilience, with continued stakeholder engagement projected for 2026. Additionally, specific project proposals, including the Flipi and Little Flipi Gas Generation Projects, are discussed, with designated deadlines for feedback.

References:

1. Large Load Connects
2. AESO Engage

Alberta Utilities Commission

The Alberta Utilities Commission (AUC) is actively engaging in a review of Rule 024, which governs microgeneration in Alberta, primarily driven by stakeholder feedback from solar energy developers, advocacy groups, and utilities. This consultation aims to update existing regulations that may be outdated or insufficient, thus fostering the growth of the microgeneration sector, particularly in renewable energy initiatives like solar power.

Key highlights of the consultation include:

• The AUC's commitment to involving stakeholders in shaping future policies through a structured feedback process, encouraging submissions until June 26, 2025.
• The initiative signals a proactive step towards refining regulatory frameworks that will support evolving clean energy goals in Alberta.

References:

1. Bill 24 Bulletin

BC Streamlining Energy Infrastructure

The recent passage of British Columbia's Bill 15 and Bill 14 indicates a significant shift in energy and infrastructure policy, aimed at expediting clean energy projects and public infrastructure developments. Bill 15 accelerates public infrastructure initiatives, while Bill 14 streamlines the permitting process for renewable energy projects.

However, these bills have faced substantial opposition from First Nations groups, environmental advocates, and municipal organizations, who argue that they undermine necessary consultations with Indigenous communities and threaten environmental protections. Critics express specific concerns about the vague authority granted to the government to override existing environmental regulations and permits, raising alarms about Indigenous rights being sidelined.

References:

1. BC Bill 15

ENMAX Supporting Calgary Infrastructure

Enmax has reallocated funds from its smart meter upgrade initiative to accommodate the city's surging electricity demands due to rapid population growth. CEO Mark Poweska highlighted the need for immediate infrastructure investments during a city council meeting. Despite having replaced over 21,000 meters last year, the smart meter project will take longer to complete.

Enmax's strategy is shifting from competitive power generation to a regulated utility model, aiming to stabilize electricity pricing and revenue amidst a volatile market. This move involves a significant investment in infrastructure, with an expectation for lower short-term dividends. Although the deferral of smart meter upgrades indicates a prioritization of immediate operational challenges, it also underlines the necessity for utilities to adapt to the evolving energy landscape while ensuring reliable service.

References:

1. Calgary's Population Grows

Nuclear School

A new initiative in Saskatchewan is set to enhance the region's nuclear energy expertise through the hosting of the Canadian National Nuclear Energy Management School (NEMS) at the University of Saskatchewan from May 26 to June 6, 2025. This program, managed by the International Atomic Energy Agency (IAEA), focuses on developing the skills of mid-level professionals in the nuclear sector, marking a significant step for Saskatchewan as it seeks to build local expertise in an area currently underrepresented in the province.

The initiative is aligned with government objectives to prepare for a growing demand for skilled workers, estimated to be between 2,500 to 3,500, as the nuclear industry evolves. This knowledge is essential as Saskatchewan plans to potentially integrate nuclear energy into its power grid, as indicated by future ambitions of SaskPower.

References:

1. Saskatchewan Welcomes Nuke School

Bull Trail Wind Project

The Bull Trail wind farm project in Alberta, developed by EDF, is facing significant delays primarily due to congestion issues on the regional power grid. Initially approved in 2022, construction deadlines have been pushed to late 2026, prompting EDF to seek an additional three-year extension until at least 2029. The grid currently experiences a burden of 795 megawatts with 984 megawatts of approved projects, alongside potential future developments totaling 4,500 megawatts of interest.

The Alberta Electric System Operator (AESO) has indicated a critical need for improved infrastructure to accommodate this increasing demand. The absence of a definitive plan to enhance grid capacity hampers EDF's ability to move forward with construction. The Alberta Utilities Commission (AUC) has suggested that further extensions may only be granted when clearer plans to address grid congestion are presented.

References:

1. Bull Trail Seeks Extension

Cybersecurity Regulations

The upcoming Security Management for Critical Infrastructure Regulation will take effect on May 31, 2025, in response to increasing cyber threats targeting essential facilities such as pipelines and processing plants. This regulation, part of the Responsible Energy Development Act, mandates that the Alberta Energy Regulator (AER) identify critical facilities and enforce compliance with established security measures in line with the CSA Z246.1 standard.

Organizations must develop security incident programs, designate trained personnel, and thoroughly document their cybersecurity efforts. The AER will possess auditing powers to ensure compliance, and failure to meet requirements could result in enforced compliance measures or facility shutdowns. This regulation reflects a significant shift in prioritizing cybersecurity within critical infrastructure, urging organizations to reassess their cybersecurity frameworks. The collaborative approach between IT and Operational Technology teams will be essential for effectively combating cyber risks. Ultimately, these regulations aim to ensure operational integrity and financial stability within Alberta's energy sector amidst a rising tide of cyber-attacks.

References:

1. New Cybersecurity Regulations Come in to Force

Western Economic Corridors

Western Canadian premiers are collaborating to develop new economic corridors aimed at improving infrastructure for energy transport, especially to international markets in Asia and Europe, amid global trade tensions.

Their joint statement emphasizes the need to upgrade highways, railways, ports, airports, and electricity transmission to boost productivity, energy security, and Canada's global competitiveness in moving oil, gas, uranium, and electricity.

At a meeting in Yellowknife, they urged federal backing—especially for links between West Coast ports and Hudson Bay—and also discussed housing and public safety. A point of contention arose over Alberta’s push to revive the Northern Gateway pipeline, which B.C.’s Premier opposed.

Key Points:

• Shared priority on new corridors to access global energy markets.

• Infrastructure upgrades seen as crucial for economic and energy resilience.

• Federal support is essential for logistics and development.

• Regional cooperation spans beyond energy to broader social issues.

• Disagreements highlight the complexities of infrastructure planning.

This united provincial stance could significantly influence Canada's energy strategies and regional economic growth.

References:

1. Western Premiers Agree to Develop Economic Corridors

US Nuclear Expansion

Recent regulatory changes in U.S. nuclear policy aim to significantly increase nuclear energy capacity, targeting a rise from 100GW to 400GW by 2050. This initiative includes reactivating dormant plants and expediting new reactor approvals, addressing national energy independence while catering to heightened demand driven by artificial intelligence (AI) applications. Companies like Microsoft, Google, and Amazon are turning to nuclear for stable, low-carbon energy sources, entering long-term contracts and investing in small modular reactors.

These policy shifts also focus on enhancing uranium conversion capabilities to reduce reliance on imports, particularly from Kazakhstan and Canada, thus strengthening energy security. Despite volatility in the uranium market, optimism is growing, notably reflected in the performance of the Global X Uranium Index ETF, as investors anticipate recovery amidst ongoing uncertainties.

References:

1. US Nuclear Expansion Ambitions

ATCO

The Alberta Utilities Commission has ordered ATCO Ltd. to refund $71 million to customers due to identified discrepancies in its electricity rate-setting practices under a performance-based regulatory framework. The refund will be divided between ATCO Electric and ATCO Gas customers, showcasing the regulatory body's aim to enhance efficiency and protect consumers.

ATCO's operational practices have come under scrutiny, with claims of inefficiencies attributed to operational shifts rather than specific projects, leading to the commission's ruling. The company plans to appeal the decision in court.

The outcome of ATCO's appeal may influence regulatory standards and consumer protection efforts in Alberta, making it a significant event for both stakeholders and the energy industry at large.

References:

1. AUC Orders ATCO to Repay $71 Million to Customers

BC Critical Minerals

British Columbia is advancing a $30 billion framework to accelerate critical mineral mining while adopting a consent-based approach with First Nations. Premier David Eby emphasized the importance of Indigenous partnerships, citing successful collaborations like those with the Tahltan Nation. The initiative aims to position B.C. as a key economic player, striking a balance between growth, land conservation, and Indigenous rights.

The plan includes streamlined regulatory approvals, raising concerns about potential environmental risks in already impacted areas. With B.C. producing 19 of Canada’s 34 critical minerals vital to clean energy, its role in the global supply chain is strategic.

However, Bill 15 faces criticism for potentially undermining Indigenous rights due to claims of insufficient consultation. 

References:

1. BC Outlines Fast Tracking for Critical Minerals

AB Rural Energy Development

Proposed regulatory changes to renewable energy development in Alberta have sparked concerns among the Alberta Rural Municipalities Association (RMA), highlighting a growing tension between rural communities and the UCP government. The RMA criticizes the Alberta Utilities Commission (AUC) for outdated regulations that inadequately address the needs of agricultural land, which could threaten local farming operations and sustainability.

Key issues include:

• Community Backlash: There is a perception that proposed regulations are politically motivated and not genuinely aimed at enhancing energy practices, risking the integrity of the agricultural sector.
• Outdated Regulations: Rural communities argue that existing policies do not reflect current agricultural realities, necessitating a regulatory evolution to better accommodate local farming interests.
• Impact on Agriculture: The reforms are seen as potentially detrimental to farmers' livelihoods, emphasizing the need for regulatory frameworks that balance renewable energy initiatives with agricultural sustainability.

References:

1. RMA Voices Concerns over Alberta's Proposed Rules

Yukon and BC Connect Grids

A memorandum of understanding between the Yukon and British Columbia (B.C.) governments aims to connect their electrical grids, significantly enhancing energy security and renewable energy generation in both regions. This collaboration is pivotal, as Yukon currently lacks ties to the larger North American electrical grid. The agreement seeks to establish two-way electricity transmission, which will foster economic prosperity and promote cleaner energy options. Federal assistance is being pursued to develop what is termed the “clean electricity corridor.”

The initiative includes consultation with First Nations, industries, and other stakeholders to optimize renewable energy opportunities in Western Canada. A key component is the North Coast Transmission Line (NCTL), a 450-kilometer route connecting Prince George and Terrace in B.C., expected to facilitate Yukon's access to new energy sources. Concurrently, the Yukon Development Corporation and Yukon Energy Corporation are looking to expand the region's energy generation capabilities to meet increasing winter demands.

References:

1. BC and Yukon Ink Deal to Connect Grids

Interties towards a National Grid

The B.C.-Alberta transmission line illustrates both obstacles and potential in building a national electricity grid. Currently operating at only 40–60% capacity, its underuse is attributed to Alberta’s restrictions on electricity imports—seen as a barrier to interprovincial cooperation and efficient energy distribution. Prime Minister Mark Carney has championed a national grid to strengthen energy security and reduce reliance on U.S. energy amid global uncertainties.

Regulatory constraints and Alberta’s protectionist stance hinder fair competition and economic synergy with B.C. As Canada targets a doubling of electricity supply by 2050 to meet climate goals, enhanced interprovincial collaboration—merging B.C.’s hydro with Alberta’s renewables—is vital.

Key Points:

• Improved grid interconnectivity can lower costs, boost reliability, and build climate resilience.

• Political alignment and governance reform are essential to enable national coordination.

• Without structural change, Canada risks falling short of critical energy and climate benchmarks.

In a shifting global energy landscape, robust interprovincial ties are crucial for Canada’s long-term energy strategy and climate commitments.

References:

1. Lessons from the BC and Alberta Intertie for a National Grid

Energy Storage Summit in Alberta

CanREA’s Energy Storage Alberta Summit is back on June 3, 2025, at the Fairmont Palliser in Calgary. This full-day conference will bring together energy leaders, policymakers and innovators to explore the transformative role of energy storage in Alberta’s evolving electricity landscape. From enabling renewables and supporting AI data centres to enhancing grid reliability, the Summit will dive into real opportunities and challenges, including regulatory and market barriers.

References:

1. Energy Storage Conference

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.