IPPSA Intelligence

Alberta Electric System Operator

Alberta’s power grid is undergoing a rapid transformation driven by strategic investments in solar, wind, biomass and energy storage projects, supported by the Alberta Electric System Operator (AESO). Four major connections—Eastervale Solar, Strathcona Resources’ 18 MW biomass generator, Willow Ridge Wind and Battery, and Luna Solar+ Phase One—illustrate a coordinated push to diversify the province’s energy mix and reduce carbon intensity.

Ongoing Needs Identification Documents and market-participant notifications reflect AESO’s transparent, stakeholder-driven planning process, aligning infrastructure upgrades with evolving demand forecasts. The Eastervale and Luna Solar+ initiatives will add significant solar generation, while Willow Ridge integrates wind with battery storage to balance intermittency and bolster grid reliability.

Meanwhile, Strathcona Resources’ delayed biomass connection underscores the importance of coordinated commissioning and real-time market data updates to accommodate new capacity.

References:

1. Connecting Renewable Energy: The Eastervale Solar Project's Role in Alberta's Energy Future
2. Alberta's Energy Future: Strathcona Resources Ltd. 1 Biomass Generator Update and Its Market Implications
3. Willow Ridge Wind and Battery Project: Paving the Way for Renewable Energy Integration in Alberta
4. Luna Solar+ Project: Advancing Renewable Energy Infrastructure in Alberta

Proclamation of Key Sections of the Energy and Utilities Statutes Amendment Act

On July 9, 2025, the Government of Alberta proclaimed select provisions of the Energy and Utilities Statutes Amendment Act, 2025, marking a pivotal advancement in Alberta’s ongoing transmission policy reform. These changes are aimed at modernizing Alberta’s electricity system by aligning cost responsibilities with cost-causers and enhancing grid planning and intertie capacity.

Key provisions include Sections 1(9)(c) and 1(13), which enable the recovery of ancillary services costs based on the principle of cost-causation. Additionally, Sections 1(12), 1(15), and 1(16) lay the legal foundation for implementing an Optimal Transmission Planning framework.

This approach aims to optimize long-term system planning and investments, enhancing efficiency, reliability, and accountability within Alberta’s transmission network.

In tandem, amendments to the Transmission Regulation have also come into force, effective immediately. These changes operationalize previous government policy announcements and introduce a new cost allocation framework. Notably, new generation projects will now be required to make an upfront, non-refundable Transmission Reinforcement Payment (TRP) to contribute to transmission infrastructure costs, ensuring a more equitable allocation of costs.

The regulation also mandates the Alberta Electric System Operator (AESO) to:

* File a Needs Identification Document (NID) for the Alberta Intertie Restoration project by December 31, 2026, targeting restoration of the Alberta-BC intertie capacity to ~950 MW.

* Procure high availability ancillary services to fully support import flows on the Alberta-BC Intertie and the Montana Alberta Tie Line.

* Enhance the Alberta-Saskatchewan Intertie’s path rating in alignment with the McNeill Converter’s end-of-life upgrade, maximizing existing regional capacity.

Furthermore, the amendments remove competitive procurement requirements for enhancements to path ratings of merchant and regulated interties. This streamlining aims to reduce barriers to needed upgrades and facilitate more agile infrastructure development.

It’s important to note that these changes do not yet address the recovery of line losses, which are expected to be handled in future regulatory updates later in 2025. The remainder of the Act’s provisions will be proclaimed in alignment with the finalization of Alberta’s Restructured Energy Market initiative.

References:

1. Proclamation of Key Sections of the Energy and Utilities Statutes Amendment Act

Michael Sabia’s Message to Federal Staff

On July 7, 2025, Michael Sabia, newly appointed Clerk of the Privy Council and Secretary to the Cabinet, issued a message to federal public servants marking the start of his tenure. Having previously served in the public service—including as Deputy Minister of Finance—this marks Sabia’s third entry into federal service, now at a pivotal moment in Canada’s national and global context.

Sabia stresses that the world is undergoing fundamental change, presenting Canada with a rare opportunity to:
* Build a more resilient economy,
* Strengthen prosperity and fairness,
* Reinforce national unity amid global polarization,
* Public Service’s Role and Guiding Principles.

To seize this moment, Sabia outlines three guiding imperatives for the public service:
* Focus: Stay disciplined and aligned with the Prime Minister’s stated priorities to deliver faster, more effective results.
* Simplify: Streamline internal processes to avoid bureaucratic inertia and ensure responsiveness to time-sensitive opportunities.
* Accountability: Foster a culture of both formal and personal accountability, where initiative and ownership drive outcomes.

Sabia frames listening and debate as essential elements of effective leadership. He champions diversity of perspectives as a strength and calls for honest, rigorous discussion to guide decisions—especially in times when traditional processes may no longer suffice.

References:

1. Message from the Clerk of Privy Council

Interties Get Linked to Trade Negotiations 

In a letter this week Senator Steve Daines, along with other Montana lawmakers, urged Ambassador Greer to take immediate action against recent regulatory changes by the Alberta Electric System Operator (AESO) that impose discriminatory barriers to Montana-based electricity firms trading via the Montana‑Alberta Tie Line. The letter claims that these bias-inducing measures threaten U.S. energy producers with unfair costs and diminished market access, and jeopardize grid reliability—especially given AESO’s deviation from North American grid standards and reliance on uncompensated grid support from Montana.

The letter claims that failures to address this discrimination could harm energy security in extreme weather conditions and deter future investment. The signatories call on USTR to elevate the issue in negotiations with Alberta and Canada and insist that until Alberta ensures reciprocal treatment of U.S.-based providers, Montana’s producers and consumers will suffer significant economic and infrastructure harm. The issue also came up in this weeks confirmation hearing of David Eisner for Assistant Secretary of Energy and International Affairs.

References:

1. Letter to US Trade Representative

Navigating the Nuclear Cleanup Challenge

Canada’s management of its most contaminated nuclear sites has entered a new phase under a BWX Technologies-led consortium, Nuclear Laboratory Partners of Canada Inc., replacing the decade-long stewardship of the Canadian National Energy Alliance. Although AECL highlights physical progress in demolishing structures and removing waste, reported financial liabilities have continued to climb, reflecting a disconnect between cleanup milestones and documented cost projections.

Radiological hazards, aging infrastructure and stringent regulatory requirements complicate every project stage, necessitating specialized equipment and advanced methods to safely isolate and dispose of radioactive materials. Delays in approvals and evolving safety standards further extend timelines and budgets.

References:

1. Navigating the Nuclear Cleanup Challenge: AECL's New Leadership and Canada's Financial Liabilities

Alberta Explores Nuclear Power

Alberta is poised to broaden its energy mix by initiating public consultations on integrating nuclear power, particularly small modular reactors (SMRs), alongside its natural gas infrastructure and strengthening long-term energy security. The government seeks cleaner and reliable sources to meet rising demand from sectors like artificial intelligence data centers. SMRs, offering modularity, off-site fabrication and reduced output, present a flexible option for remote communities and heavy industrial users.

However, experts caution that nuclear deployment timelines and costs may lag behind rapidly maturing renewables and storage technologies. Policy deliberations will weigh economic factors, grid stability, environmental goals and public acceptance. Ultimately, Alberta’s energy strategy may hinge on balancing innovative nuclear options with expedited renewable pathways to achieve sustainable growth, decarbonization and resilience.

References:

1. Alberta Explores Nuclear Power: A Shift Towards Cleaner Energy and Technological Growth

Hydro-Québec Halts Gull Island Project Amid Innu Protests

Hydro-Québec suspended work at Gull Island in Labrador after Innu protests over insufficient consultation and compensation on their traditional territory. Demonstrators criticized the utility’s failure to engage meaningfully, underscoring broader tensions between hydroelectric expansion and indigenous rights in Canada. Hydro-Québec acknowledged the cultural importance of the region and committed to further dialogue, while the Innu Nation stressed that any agreement must reflect proper consent rather than superficial meetings.

Ensuring transparent consultation processes and fair benefit-sharing agreements will be essential to advance sustainable energy infrastructure while respecting indigenous sovereignty and minimizing ecological impacts and fostering equitable, long-term economic stability for all stakeholders.

References:

1. Hydro-Québec Halts Gull Island Project Amid Innu Protests Over Consultation and Compensation

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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.