IPPSA Intelligence

AESO

Alberta is advancing grid modernization through key infrastructure enhancements, stakeholder engagement, and regulatory reforms that bolster renewable integration and market resilience. The Big Rock Solar Battery Project will connect a new 138 kV line and expand the High River 65S substation to store solar power and smooth variable output. Integrating large data centres poses unique capacity and reliability challenges, prompting the AESO to outline specific technical data requirements and streamlined connection processes via informational sessions and stakeholder consultations.

Simultaneously, Optimal Transmission Planning and Transmission Reinforcement Payment initiatives invite industry feedback on transmission upgrades to meet growing demand in regions like Grande Prairie. Stakeholders can participate in virtual sessions and consultations to shape future transmission planning and project proposal guidelines.

On the market side, the launch of the Fast Frequency Response Plus ancillary service aims to enhance near-instantaneous grid stability and enable cross-border imports. Regulatory updates, including compliance standards for voltage control and generator operations, ensure transparent expectations and reliable performance.

References:

1. Connecting to a Greener Future: The Big Rock Solar Battery Project's Impact on Alberta's Energy Grid
2. Integrating Data Centres into Alberta's Electricity Grid: Challenges and Solutions by the AESO
3. Transforming Alberta's Electricity Market: AESO Updates on Clean Energy Initiatives and Regulatory Changes

The AER on Balancing Water Resources

Alberta’s abundant nonsaline water supply—over 143 billion cubic meters annually—supports diverse demands from agriculture to energy while adhering to provincial and cross-border agreements. Surface water, drawn from rivers, lakes and wetlands, dominates resource availability, with historical runoff data informing allocations; groundwater recharged by precipitation remains less understood, especially at depth. Under the Water Act, roughly 7% of available nonsaline water was licensed in 2023. Energy companies accounted for only a small share, consuming 22% of their allocation, largely for oil sands operations that remain the sector’s largest water users. Surface water allocations exceeded 96% of total licenses, underscoring the industry’s reliance on river and lake withdrawals. Meanwhile, deeper aquifers pose challenges for monitoring and sustainable management. The disconnect between allocations and actual usage suggests opportunities to revise licensing models, improve water-use efficiency and reduce environmental impacts, particularly in water-scarce regions.

References:

1. Water Performance and Availability in Alberta

Alberta power reserves falls to zero late Tuesday afternoon

On June 17, Alberta’s electrical grid faced a critical moment when two of its largest natural gas-fired power plants, Genesee Repower Units 1 and 2, unexpectedly went offline simultaneously, instantly removing 932 megawatts—or nearly 9%—of the province’s total generation capacity. This sudden loss dropped Alberta’s dispatched contingency reserves to zero, violating North American Electric Reliability Corporation guidelines that require at least 4% of demand to be available in reserve.

The AESO scrambled to stabilize the grid by maximizing hydroelectric output and activating battery storage systems, with the Brazeau Dam producing nearly its full capacity. Despite wind and solar contributing some power, nearly all available generation assets were pushed to their limits. While the situation was resolved within 30 minutes and no formal grid alert was issued, the event revealed the system's vulnerability during “shoulder season” maintenance, underscoring the risks of low reserves and tight supply margins even during relatively low demand periods.

References:

1. Alberta power reserves falls to zero

Navigating Canada's Energy Future: The Impact of AI Growth

Canada’s energy sector is confronting surging electricity demand as the artificial intelligence boom drives rapid expansion of data centers. Hosting roughly 239 facilities, the country’s centers contribute to global consumption that reached about 460 terawatt-hours in 2022 and is forecast to double by 2026. This surge exacerbates an existing inefficiency crisis: up to half of Canada’s generated power is estimated to go unused. To tackle these losses, technology firms are deploying real-time monitoring and advanced controls to optimize HVAC operations, curtail industrial idling and balance load distribution across homes and factories. 

References:

1. New Technologies Can Reduce Waste as Demand Surges

Harnessing Local Resources: Alberta's Path to Embracing Off-Grid Data Centres 

Graeme Harrison, Dan Chapman and Dan Balaban opine that Alberta’s new 1,200 MW limit on large electricity consumers spurred a pivot in data centre development toward decentralized, self-powered facilities. Leading tech companies, including Microsoft, now favor smaller, agile campuses that sidestep traditional grid dependencies by integrating on-site generation. Crusoe Energy’s Texas project for OpenAI exemplifies this shift, demonstrating how private energy solutions can outperform cumbersome public grid connections. Financially, this model complements the high value of advanced AI chips, whose cost and short lifespan demand onsite power sources to boost operational efficiency and minimize regulatory hurdles.

Alberta’s abundant stranded natural gas emerges as a strategic asset; rather than exporting this resource, the province could fuel off-grid data centres, stimulating local economies and bolstering municipal tax bases. To capture this opportunity, regulators should streamline permitting for modular gas plants and upgrade data transmission infrastructure to support dispersed energy hubs.

References:

1. Opinion: Don’t panic: AESO data centre limits are a red herring

Power Outage in Northwest British Columbia

Lightning-induced transmission failure in northwest British Columbia left over 45,000 residents without power, underscoring critical infrastructure vulnerabilities. The strike severed the only line connecting Prince George to Prince Rupert, revealing a lack of redundancy in the regional grid. B.C. Hydro’s staged restoration began in Vanderhoof and progressed westward, restoring most service within hours, though some customers remained offline by late evening. Although communications held, prior outages highlight remote infrastructure fragility. The outage’s rapid resolution demonstrated effective emergency protocols but also illuminated the absence of backup capacity, which increases grid exposure to extreme weather events that may grow more frequent with climate change. Premier David Eby announced transmission expansion plans to build new lines that will diversify supply routes and bolster resilience against future disruptions. 

References:

1. Power mostly restored after outage affects thousands in northwest B.C

Reviving Nuclear Power: New Brunswick Proposes Second CANDU Reactor

Premier Susan Holt has reignited plans for a second nuclear reactor at Point Lepreau to meet surging electricity demand domestically and regionally. She proposes combining proven large-scale CANDU technology with emerging small modular reactors (SMRs), aiming to strike a balance between cost, timeline, and capacity. While prior administrations backed SMRs from ARC Clean Energy and Moltex Energy Canada for their potential affordability and rapid deployment, those projects have encountered regulatory and financing delays. As a result, New Brunswick Power faces pressure to explore traditional reactor options to ensure reliable baseload power. The existing Point Lepreau facility, commissioned in 1983, helped decarbonize the provincial grid but has contributed to ratepayer debt, with a liability of $5 billion. Holt argues that newer CANDU designs could offer economies of scale, especially if partnered with neighboring provinces such as Quebec and Prince Edward Island, through shared ownership or investment arrangements.

References:

1. Holt considers 2nd large-scale nuclear plant at Lepreau

Power Grid System Market Forecast: Projected Growth to USD 28.10 Billion

Rapid investments in smart grids and renewable integration are set to nearly double the global power grid system market from USD 13.02 billion in 2025 to USD 28.10 billion by 2032, growing at an 11.6 % CAGR. Advanced transmission, distribution and control technologies are enabling utilities to optimize electricity flow, reduce losses and enhance resilience. North America leads adoption due to extensive smart grid rollouts, while Europe leverages wind and solar integration drives. Industry giants such as ABB, Eaton and General Electric are deploying digital substations, AI-driven load forecasting and real-time monitoring solutions to improve operational efficiency. Yet rising cybersecurity threats challenge operators to bolster defenses across increasingly digital infrastructures. Voltage rating segmentation indicates strong demand for medium and high voltage systems to support expanding renewable capacities and EV charging networks.

References:

1. Power Grid System Market Forecast: Projected Growth to USD 28.10 Billion by 2032 Driven by Smart Grids and Renewable Energy Integration

Willow Ridge Wind Project Approval

Approval of the 300-megawatt Willow Ridge Wind Project across southern Alberta represents a major project milestone. The initiative leverages advanced turbine designs and grid integration techniques to optimize intermittency management and overall output. Economically, construction and operational phases are poised to generate hundreds of local jobs, stimulate lease payments to landowners and bolster rural revenue streams. Environmentally, projections estimate an annual reduction of over 200,000 tonnes of CO2, contributing meaningfully to Canada’s climate commitments.

However, community opposition has emerged, centering on potential noise, wildlife disruption and landscape alteration. The project’s approval signals regulatory confidence in renewable technology yet highlights ongoing tensions between development and environmental guardianship.

References:

1. Willow Ridge Wind Project Approval

Farmers Voice Concerns Over Hydro One's Proposed Transmission Line

Farmers across rural Ontario communities are voicing strong objections to Hydro One's plan to erect new transmission lines, driven by concerns about soil health, crop yields and future land viability. Many landowners warn that the planned corridors could fragment fields, reduce farmland accessibility and disrupt drainage patterns, potentially leading to erosion and diminished productivity.

Meanwhile, Hydro One argues that reinforcing the regional grid is crucial for meeting surging power demand, integrating renewable generation and ensuring system resilience. Policymakers face a dilemma: balancing infrastructure upgrades necessary for decarbonization targets against the preservation of prime agricultural land. 

References:

1. Proposed transmission line causes debate

Nova Scotia's Ambitious $10 Billion Offshore Wind Transmission Line

Projected at nearly $10 billion, Nova Scotia’s planned offshore wind transmission line embodies a major investment in renewable integration. Announced by Premier Tim Houston, the project will link new wind farms off the province’s coast to the onshore grid. Expanding transmission capacity aims to attract investment, reduce electricity costs over time and strengthen the province’s role in an evolving energy market. Delivering this infrastructure requires coordinated planning among government, utility operators and private partners to navigate engineering, permitting and environmental considerations. Offshore installations face marine challenges and ecosystem sensitivities, but modern engineering and mitigation can contain impacts.

The sizeable upfront cost is expected to generate jobs across planning, construction and maintenance, while long-term returns depend on stable regulatory frameworks and financing mechanisms balancing public and private interests. 

References:

1. Nova Scotia's Ambitious $10 Billion Offshore Wind Transmission Line: A Step Towards Sustainable Energy

Bridging Divides: Alberta and Ottawa's Path to Geothermal Energy Collaboration

Peter Massie, who is a director at the Cascade Institute, opines that rising  tensions between Alberta and the federal government have cast a shadow over Canada’s energy landscape, but geothermal development presents an opportunity to foster collaboration, drive economic growth and slash emissions. Tapping into subterranean heat through deep-well drilling promises steady baseload power with minimal environmental footprint, and Alberta’s oil-and-gas workforce and infrastructure could pivot to this new frontier. The International Energy Agency forecasts geothermal’s capacity could soar, drawing investors to Canada’s rich geology. Yet upfront drilling costs and technological hurdles require risk and investment. A joint commitment of roughly CAD 200 million from provincial and federal coffers, complemented by private capital, could establish dedicated drilling test centers. These pilot facilities would accelerate innovation, reduce unit costs and foster homegrown expertise—mirroring successful American wind-power test sites that transformed turbines from experimental prototypes into competitive powerhouses. 

References:

1. How can Alberta and Ottawa be friends again? It begins with drilling

Saskatchewan's Controversial Commitment to Coal

Saskatchewan has opted to prolong coal-fired electricity generation, defying federal clean energy regulations by asserting that power production falls exclusively under provincial authority. Despite accounting for only four percent of Canada’s power output, the province is responsible for over a quarter of national electricity emissions, prompting critics to label its strategy environmentally regressive.

Provincial leaders argue that surging electricity demand requires an “all-of-the-above” supply mix, maintaining coal through planned extensions while gradually integrating nuclear, renewables, natural gas and biomass sources. Internal government analyses warn that complying with federal phasing deadlines could incur up to $7.1 billion in costs, influencing the decision to resist Ottawa’s 2030 coal phase-out mandate.

Saskatchewan says its renewables mix has boosted grid resilience, but coal remains essential for base-load security as the province plans to use uranium reserves for nuclear development. 

References:

1. Saskatchewan says Ottawa can’t stop it from extending life of coal-fired power plants

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