IPPSA Intelligence

The AESO

The Alberta Electric System Operator is responding to unprecedented demands in its electricity network by implementing an interim 1,200 MW cap on large load connections, prioritizing data centres while preserving grid stability. This threshold balances Alberta’s rapid influx of project proposals—29 totalling over 16 GW—against operational constraints to 2028. 

Rigorous qualification standards mandate municipal support, financial security and technical validation, ensuring each participant can integrate responsibly. Allocating capacity pro-rata guarantees fairness among developers and defers costly infrastructure upgrades. Simultaneously, federal and provincial stakeholders are engaging in regulatory consultations to refine bulk transmission standards and ancillary services.

Meanwhile, June’s duct firing tests push Genesee Repower units beyond max capacity to validate performance under stress, bolstering system reliability.

Finally, Stakeholder feedback deadlines in late June and early July encourage market participants to shape connection cost policies, frequency response services and transmission requirements, reinforcing AESO’s commitment to transparent governance and agile adaptation to demands.

References:

1. Stakeholder Engagement and Regulatory Updates: AESO's June 2025 Newsletter on Clean Energy Initiatives
2. Navigating Alberta's Energy Future: AESO's Interim Strategy for Data Centre Integration and Grid Reliability
3. Ensuring Reliability: Testing Genesee Repower Units for Alberta's Energy Future

AER Report on Unlocking Alberta's Economic Future: The Promise of Critical Minerals

Alberta hosts a diverse portfolio of critical minerals essential for energy transition and advanced technologies. Brine-hosted lithium prospects have sparked new economic interest, complemented by ten additional priority minerals including uranium, vanadium, rare earth elements, iron and zinc. Rich uranium deposits in locations such as the Athabasca Basin offer potential for nuclear power expansion, while preliminary surveys across the province indicate additional targets requiring exploration. 

Research by the Alberta Geological Survey is systematically mapping these resources, generating data that may attract investors and guide sustainable mining strategies. Leveraging underdeveloped mineral wealth positions Alberta to strengthen its economic base, reduce dependency on imports, and help meet global demand for low-carbon technologies. 

References:

1. Unlocking Alberta's Economic Future: The Promise of Critical Minerals for Energy Transition

Kiwetinohk Energy Corp. Initiates Strategic Review

Kiwetinohk Energy Corp. has launched a comprehensive strategic review aimed at optimizing shareholder value by refocusing on its exploration and production assets and considering divestment of its power operations. Management emphasizes that no definitive actions have been approved and cautions that outcomes are subject to board endorsement and market uncertainties.

Potential monetization of power assets could free capital for reinvestment in drilling programs, enhanced recovery techniques and infrastructure upgrades while streamlining operations. Kiwetinohk’s review could set a precedent for similar players reevaluating their energy mix in pursuit of sustainable profitability. 

References:

1. Kiwetinohk Energy Corp. Initiates Strategic Review: Focus on Upstream Assets and Potential Exit from Power Business

Edmonton Launches Canada's First Virtual Power Plant

Edmonton’s first virtual power plant harnesses solar energy generated by 100 new homes in the Blatchford community, marking a milestone. Homes equipped with rooftop photovoltaic panels and battery storage will not only meet local power demands but also feed excess electricity back into the grid during peak hours.

Supported by a $3.3 million grant from Emissions Reductions Alberta, the initiative brings together local builder Landmark and energy provider Solartility to demonstrate how a network of residential generators can function as a smarter, cleaner, and more cost-effective power plant. Smart inverters and digital controls will balance supply and demand in real time, easing stress on transmission infrastructure and deferring investments in new generation capacity. 

References:

1. Edmonton Launches Canada's First Virtual Power Plant: A Sustainable Energy Revolution in Blatchford

Manitoba Boosts Commercial Solar Rebates by 50%

Commercial solar investments in Manitoba are poised for a surge thanks to Efficiency Manitoba’s decision to raise provincial rebates from $0.50 to $0.75 per DC watt, translating to $75,000 for a 100 kW installation. This 50% increase significantly shortens payback periods for businesses and farms, making clean energy solutions more financially attractive. Eligible projects must be properly sized to offset average energy consumption, feature a dedicated meter and Manitoba Hydro account, employ Canadian-purchased equipment, and secure pre-approval from Efficiency Manitoba, ensuring that funding drives genuine efficiency gains.

References:

1. Manitoba Boosts Commercial Solar Rebates by 50%, Encouraging Investment in Renewable Energy

Power Emergency Declared in Southeast Amid Extreme Heat Wave

Southeastern states have entered a power emergency as an unprecedented heat wave pushes electricity demand and temperatures above 100°F, compelling federal authorities to authorize Duke Energy to temporarily exceed air pollution limits. Surging use of air conditioning and record consumption have strained grids across North and South Carolina, raising concern that some areas could face blackouts or rolling outages.

The Department of Energy’s expedited order aims to maximize generation at coal, gas and nuclear plants to protect system stability, but highlights the fragility of aging infrastructure under extreme weather. Analysts warn that reliance on traditional power sources during emergencies underscores the need to accelerate investments in renewable energy, battery storage and demand-response programs to bolster resilience.

References:

1. Power Emergency Declared in Southeast Amid Extreme Heat Wave: A Call for Energy Resilience

Alberta's $5 Million Investment in Direct Air Capture

Alberta’s recent allocation of CA$5 million toward a direct air capture (DAC) innovation hub marks a significant shift in emissions management. Building on its status as host to two of North America’s largest carbon capture, utilization and storage facilities, the province is pioneering an approach that extracts carbon dioxide directly from ambient air, rather than only point-source emissions.

Through Emissions Reduction Alberta, the funding supports Deep Sky’s development of a commercialization center in Innisfail, deploying multiple DAC units designed to trap and compress 3,000 tonnes of CO₂ annually for permanent underground storage. Initial projections estimate the center will generate around 50 skilled positions and attract research collaborations with universities and industry partners, amplifying regional competitiveness.

References:

1. Alberta's $5 Million Investment in Direct Air Capture: Pioneering Carbon Removal and Economic Growth

SaskPower's $1.5 Billion Investment: Modernizing Saskatchewan's Electricity Infrastructure

SaskPower’s record $1.5 billion capital outlay in 2024–25 underscores a strategic pivot towards modernizing and expanding Saskatchewan’s electricity infrastructure. With $555 million allocated for infrastructure sustainment and $855 million for growth projects, the Crown utility is upgrading aging assets while boosting generation capacity. Key developments include commissioning the 370 MW Great Plains Power Station, commencing a second natural gas-fired facility, and advancing site selection for Saskatchewan’s first small modular reactor.

Investments also foster renewables and community resilience: the Bekevar Wind Power Facility added 200 MW of wind capacity, and the province’s inaugural microgrid now powers the Descharme Lake community. A decade of carbon capture at Boundary Dam highlights progress in emissions reduction. SaskPower’s net income of $76 million and a solid 76.2% debt ratio reflect financial stability.

References:

1. SaskPower's $1.5 Billion Investment: Modernizing Saskatchewan's Electricity Infrastructure for a Sustainable Future

Alberta's Natural Gas Power Generation Hits Record High

Alberta’s natural gas use for power generation has risen to an all-time average of 1.73 billion cubic feet per day in June 2025, surpassing the previous year’s figure despite milder weather conditions. The province added 1,500 MW of gas-fired capacity over the past year, driving a 12% year-on-year increase in power generation, while heating degree days fell 24%. Natural gas now accounts for over 60% of installed capacity and contributed 70% of total generation in June, underscoring Alberta’s role as Canada’s largest market for gas-fired electricity. 

Emerging digital monitoring tools and AI-driven optimization are also being deployed, but the need for reliable baseload and flexible generation keeps gas in a dominant position. This trend carries significant implications for provincial energy policy, highlighting the balance between emissions reduction goals and grid reliability. 

References:

1. Alberta's Natural Gas Power Generation Hits Record High in June 2025 Amid Rising Demand

Red Deer Transitions to a Municipally Controlled Corporation for Electricity

Red Deer’s shift from a municipal utility department to a municipally controlled corporation (MCC) marks a cautious yet strategic evolution in its electricity management. Over a planned two-year transition, the city retains ownership but delegates operational oversight to an independent board, while council continues rate approvals. This structure aims to streamline governance, improve efficiency, and maintain regulatory stability, ensuring customer rates remain unchanged during the handover.

Extensive public consultation has shaped the transition, with regular updates and forums to gather feedback and maintain trust. The district chamber of commerce warns of potential higher costs and increased competition, urging exploration of private partnerships or a full sale. Balancing these concerns, city officials emphasize transparent monitoring, robust regulatory frameworks, and community engagement to safeguard affordability and reliability.

References:

1. Red Deer Transitions to a Municipally Controlled Corporation for Electricity: A New Era of Governance and Community Engagement

Naheed Nenshi on Alberta's Future: Economic Stability, Nuclear Energy, and Rising Utility Rates

NDP leader Naheed Nenshi warns that Premier Danielle Smith’s push for a vote on leaving Canada has injected uncertainty into the province’s fiscal outlook, risking a slowdown in capital inflows. Meanwhile, the government’s flirtation with a nuclear power project near Peace River has reignited debates about diversifying Alberta’s energy mix. Although nuclear energy promises low-emission baseload power, Nenshi doubts the United Conservative Party’s track record for following through on large-scale clean-energy initiatives, suggesting that talk of reactors often substitutes for genuine investment in solar and wind infrastructure.

Compounding these challenges, electricity utility rates have climbed under the current administration, placing additional burdens on households and businesses already grappling with market volatility. Higher utility bills and ambiguous energy policy erode confidence across industries, from manufacturing to technology, which rely on predictable power costs. As the province navigates its next chapters, balancing economic competitiveness with sustainable energy goals will demand coherent governance and clear policy frameworks.

References:

1. Naheed Nenshi on Alberta's Future: Economic Stability, Nuclear Energy, and Rising Utility Rates

SaskPower's Financials

Saskatchewan’s main power provider reported a steep drop in net income, tumbling from $184 million to $76 million year-over-year, driven largely by lost export revenues after storm damage severed the intertie with Alberta. Repair work is underway, but the financial shortfall threatens to translate into higher consumer rates. In response, the provincial government has approved extending coal-fired power plant operations beyond the federally mandated 2030 phase-out. 

The decision to prolong coal usage raises complex policy questions about climate commitments, regulatory flexibility and investment priorities. As traditional generators grapple with aging infrastructure and volatile markets, pressure is mounting to integrate renewables and modernize the grid. Successful navigation of these challenges will hinge on aligning financial stability with sustainable innovation, ensuring energy security without sidelining long-term environmental goals. 

References:

1. SaskPower's Financial Struggles and Controversial Coal Plant Extensions: A Balancing Act in Saskatchewan's Energy Policy

2025 Alberta Energy Outlook

Alberta’s energy sector saw robust performance in 2024, powering 60% of Canada’s natural gas supply and 84% of its oil equivalent, two-thirds sourced from bitumen. Investment in resource development surged to C$30.9 billion, marking a nine-year high and reinforcing the province’s role as an energy investment hub. Conventional oil and gas remain core drivers, but emerging sectors gained momentum: hydrogen production is projected to grow from 2.6 Mt annually in 2024 to 4.4 Mt by 2034, geothermal capacity and helium output are slated for significant expansion, and lithium extraction is poised to commence, reaching 14.8 kt by 2034.

Nationally, Canada doubled its natural gas reserves, climbing from 15th to 9th in global rankings, further solidifying energy security and export potential. Forecasts reflect ongoing reserve evaluations and evolving market conditions, suggesting adjustments in future production trajectories. Policy frameworks and stakeholder planning will need to accommodate both traditional hydrocarbon infrastructure and nascent sustainable energy projects. 

References:

1. 2025 Alberta Energy Outlook: A Comprehensive Forecast of Alberta's Energy Landscape and Emerging Resources

First Nations' Concerns Over Data Centre Energy Allocation Strategy

Alberta’s electrical grid strategy to power an influx of AI-focused data centres has sparked opposition from a coalition of First Nations chiefs, who warn that the proposed allocation method favors large tech investments at the expense of smaller projects, particularly those on Indigenous lands. 

Chiefs argue that dividing limited electricity into fixed, modest allocations undermines economic growth opportunities for First Nations and hampers their ability to compete for major partnerships. While AESO maintains that its approach ensures fair distribution and grid reliability, Indigenous leaders contend it inadvertently locks out both smaller and large-scale projects needing substantial initial power.

References:

1. Balancing Power: First Nations' Concerns Over Alberta's Data Centre Energy Allocation Strategy

Challenges in the Renewable Energy Market: Canadian Pension Funds Halt Sale of Cubico Sustainable Investments by The Globe & Mail

Public Sector Pension Investment Board and Ontario Teachers’ Pension Plan halted a planned sale of Cubico Sustainable Investments after bids failed to align with valuation targets. Cubico, a global wind and solar developer valued above US$6 billion, attracted offers near US$5.9 billion from buyers like Qualitas Energy and KKR-backed ContourGlobal. Stakeholders had sought roughly ten times earnings—around US$625 million for 2023, but market appetite fell short. Renewables have faced headwinds as soaring energy demands, driven by projects such as artificial intelligence, refocus investor attention on traditional power sources.

Coupled with volatile market conditions and shifting policy signals—exemplified by political backing for fossil fuels—these factors have dampened confidence in clean energy investments. Although valuations peaked during earlier optimism, a combination of economic uncertainty and evolving risk assessments has tempered acquisition enthusiasm. 

References:

1. Challenges in the Renewable Energy Market: Canadian Pension Funds Halt Sale of Cubico Sustainable 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.