IPPSA Intelligence

AESO

Renewable energy and storage developers are actively pursuing transmission connections in Alberta, with new applications in the Wetaskiwin and Legal areas signaling sustained capacity expansion.

Data centres face clarified technical requirements slated for release in Q1 2026, reflecting AESO’s adaptation to emerging load types.

Stakeholders can influence market design through feedback deadlines on fast frequency response and cost-of-service studies, while a Market Participant Readiness survey closes January 26. Market operators will gain deeper insight into congestion management at a February 4 session on Financial Transmission Rights under the Restructured Energy Market and Optimal Transmission Planning frameworks.

Reliability enhancements continue following a completed blackstart procurement in northwest Alberta, backed by a published fairness report. Updated annual statistics through December 2025 and a 2026 energy market trading charge set at 60.6¢/MWh provide critical data for traders and planners.

Four ISO tariff calculators were revised to reflect AUC-approved 2026 rates, ensuring accurate cost estimation for participants. Participants are encouraged to review information documents, register for the FTR workshop, and submit feedback by specified deadlines to shape policy outcomes. 

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Proposed 460‑MW Combined‑Cycle Gas Plant Near Rimbey Advances

A proposed 460‑MW combined‑cycle natural gas plant about 18 km southwest of Rimbey would sit on roughly 30 acres of private land and is being advanced by TransAlta after originating with Kiwetinohk Energy. The project is in concurrent federal and provincial review: Alberta Environment gave draft approval last July, the Alberta Utilities Commission has a week‑long public hearing beginning Jan. 12, and the Impact Assessment Agency of Canada set a Jan. 27 deadline for public submissions with applications to participate due Feb. 6; a virtual information session is scheduled Jan. 20 (noon–1 p.m.).

If approved, construction could start in 2027 with commercial operation targeted for 2030. The facility would tie into the grid via a new 240‑kV substation and short transmission line and receive fuel from a new third‑party pipeline connecting to an existing 22‑inch line about 1.6 km away. Rated to power an estimated 360,000–550,000 homes, its output is also pitched to attract large data centres. Early plans for carbon capture and storage—designed to capture up to 95% of CO2 (about 1.3 million tonnes)—are paused.

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Wind surges in Saskatchewan and Alberta drive zero pool prices, curb gas output and boost cross‑border exports

High winter wind in Saskatchewan and Alberta pushed turbines to 70–90% of nameplate for sustained stretches, reshaping dispatch, pricing and cross‑border flows. Saskatchewan daily averages showed wind supplying roughly 20–21% of generation on Jan.7 and Jan.11, with hydro modest, coal and gas still supplying the bulk; Alberta minute‑by‑minute data recorded 4,117 MW (72%) of wind around 1:36 a.m. Jan.13.

The surge drove Alberta pool prices to zero for extended periods, prompting many gas plants to scale back or shut off because they would otherwise receive no market payment; hydro operators cut output to refill reservoirs. Surplus wind enabled exports exceeding 1,000 MW—mainly to BC—demonstrating interprovincial balancing.

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Canada commits nearly $3 million to four Alberta smart-grid projects

Natural Resources Canada is investing nearly $3 million through its Energy Innovation Program to fund four Alberta projects that advance smart-grid technology, regulatory innovation and consumer-focused solutions to improve grid reliability, affordability and climate resilience.

ENMAX receives $1.5 million to create a roadmap for regulatory and technical modernization; EPCOR Distribution & Transmission gets $532,770 for a feasibility study of advanced rate structures to lower costs and shave peak demand; The Transition Accelerator is awarded $500,000 to enable deployment of thermal energy networks that share heating and cooling across buildings and reduce peak electricity use; and the Alberta Energy Efficiency Alliance receives $250,000 to design a regulatory framework for demand-side management.

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Canada's Data-Centre Advantage: Cold Climate, Clean Power and Capital

Canada is emerging as a prime location for data‑centre growth by combining cold climate, a largely non‑emitting electricity mix and deep pools of capital. Colder ambient temperatures cut cooling energy — which can be ~40% of consumption — while roughly 80% of Canadian power is hydro, nuclear or renewables, appealing to ESG‑focused tenants. Global M&A has been robust: Synergy tracked about 1,381 deals since 2015 totaling $276 billion, 2024 rebounded above $40 billion, and private equity now drives most transactions while institutional players like CPP deploy large construction capital.

Federal incentives, notably the AI Compute Challenge (up to $700 million), aim to anchor AI compute domestically and spur sustainable architectures as AI workloads drive demand. Financing typically layers equity, construction loans and secured lending across complex syndicated structures.

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U.S. transmission bottlenecks and 12-year interconnection delays are stalling AI data center expansion

U.S. electricity grid constraints are emerging as a central bottleneck for hyperscale cloud and AI data center expansion, driven by transmission capacity limits, prolonged interconnection studies and slow permitting for new lines. Google warns that connecting new facilities is now its biggest challenge, with utilities reporting interconnection timelines stretching as long as 12 years. To cope, companies are exploring short-term workarounds such as co‑locating data centers adjacent to power plants to secure earlier access to supply, while advocating grid‑enhancing technologies that boost transfer capacity on existing networks.

Those interim measures carry regulatory, cost‑allocation and siting complexities that federal agencies are still evaluating. The problem reflects a broader mismatch between rapidly growing electricity demand from AI workloads and legacy planning, permitting and investment processes in transmission.

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Meta secures up to 6.6 GW of nuclear power

Meta has struck three major nuclear power agreements with TerraPower, Oklo and Vistra to supply its Prometheus AI data-center cluster in New Albany, Ohio, signaling a shift toward firm, low‑carbon energy for hyperscale AI loads. The combined deals support up to 6.6 GW of new and existing nuclear capacity by 2035 using a mix of TerraPower’s Natrium advanced reactors (two funded units up to 690 MW with rights to additional units totaling about 2.1 GW by 2035),

Vistra’s purchases from operating and expanded reactors at Beaver Valley, Davis‑Besse and Perry that flow through the mid‑Atlantic grid, and an Oklo-backed 1.2 GW Pike County power campus.

Timelines span immediate delivery from existing plants to new builds targeted as early as 2032. The contracts aim to relieve stress on the region’s grid and justify regulatory actions like license renewals, while accelerating private investment in advanced nuclear supply chains and jobs. Financial terms remain undisclosed.

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Extreme cold near-miss spurs push for megaproject to link Yukon to Western Canada

A proposed megaproject to link Yukon’s isolated grid with the Western Canada power grid has gained urgency after an extreme cold snap pushed Yukon’s system nearly to capacity. Temperatures below −50 °C exposed vulnerabilities in reliance on local generation and limited interconnections, prompting officials to reconsider large-scale transmission as a reliability and market-integration solution.

Visuals in coverage depict how an intertie might be built and operated, though detailed engineering and routes remain undeclared; stakeholders include Yukon Energy, ATCO Electric Yukon, territorial and provincial governments, utilities and affected communities. During the cold event, public conservation and utility actions averted rolling blackouts, while advisories urged outage preparedness.

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Trump moves to have Tech Giants Pay for Surging Power Costs

President Donald Trump, joined by governors from several Northeastern states, is pushing for an unprecedented emergency wholesale electricity auction aimed at responding to rapidly rising power demand—especially from AI data centers—and mitigating surging utility bills for households and businesses. Under the proposal, the nation’s largest grid operator, PJM Interconnection, would be directed to hold a special auction in which major technology companies bid on 15-year power supply contracts tied to the construction of new electricity generation capacity.

These long-term agreements are expected to underpin roughly $15 billion in new power plants, with the costs borne by the tech companies through their auction commitments, regardless of the amount of electricity they actually consume. The initiative reflects growing political concern over how surging data center loads—seen as strategic for AI competitiveness—are contributing to higher wholesale power costs in the PJM region and beyond.

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BC Hydro to Build Stage 2 Transmission Line to Fully Power Woodfibre LNG

BC Hydro will build a second-stage transmission line to fully power the Woodfibre LNG export facility with renewable electricity, advancing industrial electrification and British Columbia’s climate and economic objectives. Stage 2 follows an initial connection and will be routed inside BC Hydro’s existing right-of-way from Cheekye substation through Brackendale to the Woodfibre site to minimize new land disturbance and simplify permitting.

Woodfibre LNG says electrified liquefaction will yield roughly nine times lower lifecycle GHG emissions than conventional gas‑fired liquefaction, a claim that, if supported by grid emissions accounting and operational details, would significantly reduce the facility’s carbon intensity. The project is in early consultation, with First Nations, local governments and the public engaged, an open house scheduled for March 31, 2026, and construction targeted for spring 2028; Woodfibre will follow BC Hydro’s interconnection process and cover specified costs.

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OPG submits Initial Project Description for Wesleyville nuclear project

Ontario Power Generation submitted an Initial Project Description for a proposed Wesleyville nuclear development near Port Hope, initiating a combined Impact Assessment Agency of Canada and Canadian Nuclear Safety Commission review with public comments due 11 February 2026.

The proposal describes up to 10,000 MW of new nuclear capacity with an operational life of about 78 years, projecting site preparation in 2030, construction beginning in 2033 and the first unit online around 2040. The assessment outcome will determine feasibility, timelines, and taxpayer exposure.

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OPG Seeks Major Nuclear Rate Increase to Fund Darlington SMRs and Pickering Refurbishment

Ontario Power Generation has asked the Ontario Energy Board to approve much higher payments for nuclear output of about $207 per megawatt hour beginning January 1, 2027 through 2031, driven by large capital programs. The primary cost drivers are OPG’s first of four small modular reactors at Darlington, an estimated $20.9 billion project accounting for roughly a quarter of the requested increase, and a government approved $26.8 billion Pickering reactor refurbishment representing about sixty percent.

OPG says the change would increase a typical residential bill by around 2.4 percent annually over five years, though bills already rose significantly in November and the province’s rebate has masked part of the impact. Consultant data show nuclear payments climbed to about $124 per MWh in 2026.

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157 MW First Nations‑Co‑Owned Project with 25‑Year SaskPower PPA Advances

Mino Giizis Solar Energy Facility is a 157 MW project near Regina jointly owned by Neoen and four Treaty 4 First Nations organized as the Anishinabek Power Alliance, with the Nations holding half the equity. Named “good sun” in Ojibwe, the project will sell all output to SaskPower under a 25‑year PPA and is expected to power roughly 30,000 four‑person homes.

Neoen, selected through procurement, is partnering with the First Nations and the First Nations Power Authority to advance Indigenous participation; Neoen says this is its first global joint venture with a First Nation. The development is in permitting and financing, with construction slated for early 2027 and commercial operation in 2028.

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