IPPSA Intelligence

Alberta Electric System Operator

A new congestion portal provides project-specific data to streamline planning and mitigate grid bottlenecks while enhancing stakeholder access. Publication of Grid Readiness, Integration & Performance (GRIP) requirements establishes risk-informed criteria for connection projects, prompting design adjustments and potential cost implications.

Procurement of transferred frequency response through an RFP addresses NERC and Western Interconnection obligations, creating opportunities for authorized sellers and bolstering system stability.

Materials released for the Renewable Electricity Market (REM) implementation session guide participants through key changes, ensuring smoother transition to updated market structures.

Meanwhile, Alberta Utilities Commission approval of Transmission Planning (TPL) and System Operating Limits (SOL) standards offers regulatory certainty through 2028, giving developers and operators time to adapt technical plans and compliance strategies.

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Key Elements Finalized of the Alberta-Canada Energy MOU

Alberta announced that it has finalized key elements of its energy MOU with the federal government, creating a pathway for a new Indigenous co-owned west coast oil pipeline to Asian markets, with design and construction targeted as early as Sept. 1, 2027. The agreement also streamlines major project reviews, commits Ottawa not to proceed with a federal oil and gas emissions cap, and adjusts industrial carbon pricing under Alberta’s TIER system, including a lower carbon price trajectory than previously contemplated federally.

For Alberta’s electricity sector, the most significant elements are the abeyance of the federal Clean Electricity Regulations in Alberta, sector-specific TIER stringency factors for electricity, and a new carbon price path that reaches $130/tonne by 2035 with a planned credit price floor beginning in 2030. The province and Ottawa also plan to establish a joint electricity working group to explore low-emission technologies, including nuclear, geothermal, abated natural gas, wind, solar and hydrogen—signalling that Alberta’s generation investment outlook will be shaped by provincial-federal coordination on reliability, affordability and emissions policy.

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MSA Wholesale Market Report: Q1 2026

Mild winter weather and improved supply drove Alberta’s wholesale electricity pool price down to $32.15/MWh in Q1 2026, marking a 19% decline year-over-year and 25% drop from Q4 2025. Natural gas restrictions in Fort McMurray and strategic plant outages and wind generation losses from ice accumulation on March 25 created temporary price spikes, the most notable reaching $949/MWh during hour 21 on March 17.

Transmission constraints persisted, highlighting growing grid bottlenecks even as battery storage competition intensified in off-peak reserve markets.

Net revenue modeling for hypothetical combined-cycle gas plants and wind farms indicated unprofitable conditions under current price signals, raising concerns about investment incentives. Regulatory discussions around implementing residual market-based locational marginal pricing aim to better reflect local congestion costs and improve dispatch efficiency, potentially accelerating renewable integration and storage adoption.

The shifting dynamics of supply, demand and infrastructure underscore the need for adaptive policy frameworks that encourage capital deployment while addressing emerging operational challenges and maintaining system resilience sustainably throughout evolving future quarters.

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Ottawa begins consultations on strategy to double Canada’s grid capacity by 2050

Canada is launching consultations to develop a strategy to double the electricity grid’s capacity by 2050, with federal guidance but provincial authority over implementation to meet growing demand and reliability targets. The initiative signals large-scale grid expansion to support electrification of transport, buildings and industry, increased renewable generation and interprovincial transfers.

Achieving a twofold capacity increase will require major investments in transmission corridors, HVDC links, energy storage, smart-grid technologies, generation siting and permitting reforms, alongside workforce development and supply-chain scaling for transformers, conductors and critical minerals. Policy and regulatory choices will shape cost allocation, procurement, Indigenous and community engagement, environmental assessments and market design, with implications for electricity rates, job creation and export opportunities.

Climate and resilience considerations push toward low-carbon resources but raise trade-offs over land use, habitats and local impacts. Technical challenges include integrating variable renewables, improving system flexibility with batteries, hydrogen and demand response, and bolstering cybersecurity. Success depends on federal-provincial coordination, clear targets, financing mechanisms, streamlined permitting, grid planning across jurisdictions and meaningful Indigenous partnership.

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AUC rejects Enfinite’s 100​–MW Frank Lake battery project

Enfinite sought to construct a 100-megawatt, four-hour lithium-phosphate battery storage facility near High River to bolster Alberta’s grid during peak demand. Spanning four hectares with 105 shipping-container units, it aimed to deliver stored power at times of stress. After a two-year review, the Alberta Utilities Commission rejected the proposal on grounds of material non-compliance with municipal land-use plans and potential negative impacts.

Critics highlighted Frank Lake’s status as an Important Bird Area and primary water source for 22 counties, citing risks of wetland disturbance, habitat loss and water contamination. Community members also flagged insufficient emergency response capacity, noting limited firefighting resources and unreliable water supply within an agricultural zone.

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Alberta commits $384M for NAIT Advanced Skills Centre to expand trades training

Alberta’s government and NAIT are committing $384 million over three years to an Advanced Skills Centre within a $560 million project that will add about 625,000 sq ft, host 29 programs and support roughly 5,500 additional apprentices annually across construction, transportation, manufacturing and energy. 

For utilities and project owners, a larger, steadier supplier of skilled workers should enhance delivery reliability, alter local wage dynamics and create opportunities for industry partnerships with NAIT on apprenticeship and curriculum alignment. 

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Energy minister Dix says four new wind farms will power B.C.’s energy sovereignty

British Columbia is accelerating its renewable transition with four new wind farms announced by Energy Minister Adrian Dix, three in the north and one near West Kelowna, expected online in 2032–2033. Together they aim to generate enough electricity for roughly 350,000 homes and attract about $4.3 billion of private capital, signaling strong investor appetite for large-scale clean energy.

Majority First Nations ownership marks a notable shift toward Indigenous economic participation and local control, with potential benefits for community revenues and long-term stewardship. The projects reinforce provincial energy sovereignty by reducing reliance on volatile global markets and fossil-fuel imports, while contributing to greenhouse gas reductions and regional industrial electrification.

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Telus and feds announce AI data cluster in B.C. to boost 'sovereign' computing power

Canada and Telus plan three AI data centres in British Columbia—Vancouver (Mount Pleasant and downtown) and Kamloops—supported by up to C$2 billion in federal funding over five years to build sovereign AI infrastructure. The facilities, two opening this year and a downtown Vancouver site slated for 2029, will prioritize renewable electricity and reuse waste heat to heat nearby homes, reflecting trends toward decarbonized computing and circular energy use.

The investment aims to anchor domestic AI capacity, reduce reliance on foreign cloud providers, and stimulate local tech ecosystems and construction employment. Critics in opposition voiced mixed reactions about public subsidies for a private telecom partner, highlighting political debate over industrial policy, risk allocation, and long-term fiscal commitments.

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Northland Power Reports Q1 2026 Results

Northland Power delivered strong Q1 2026 operational and financial performance, with Adjusted EBITDA and Free Cash Flow per share up 18% and 17% year​-over​-year, fueled primarily by higher wind output from its European offshore portfolio. The company is progressing construction at Baltic Power and Taiwan’s Hai Long projects, the latter supported by a 30​-year corporate power purchase agreement that enhances revenue visibility and de​risks financing.

Ongoing development of an Alberta battery storage project reflects diversification into grid-scale flexibility and supports integration of intermittent renewables. These developments underscore industry trends toward scaling offshore wind, long​-duration commercial contracts, and co​-deployment of storage to firm renewable generation.mFinancially, sustained cashflow growth improves capacity for reinvestment, debt servicing, and shareholder returns, though project execution and permitting remain execution risks.

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Poll: Canadians prioritize economic growth over environment in energy policy (61%)

Canadians have shifted toward prioritizing economic growth in energy policy, with 61% now naming it their top concern—up from 55% who prioritized environmental protection seven years ago. Support for energy infrastructure remains strong: 55% nationally back Enbridge’s Westcoast natural gas pipeline expansion, 17% oppose and 28% are unsure, while in British Columbia nearly two-thirds favour the project. Political momentum for pipelines is also evident: Prime Minister Mark Carney described a new oil pipeline to the Pacific as “more probable than possible” and signalled progress with Alberta Premier Danielle Smith on advancing a Pacific coast export route.

Policy friction persists, however, around climate pricing; Alberta’s proposed $130-per-tonne carbon price timing is a key sticking point that could slow approvals and investment. The data suggest voters increasingly link energy policy to jobs, growth and export capacity, strengthening political incentives to approve large fossil-fuel projects despite climate commitments.

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Canada monitors NERC Level 3 alert on AI data centers straining grids

NERC’s Level 3 alert highlights a growing strain on North American grids as high-density computational loads—AI training, crypto mining and large data centres—push peak demand, prompting Canada to monitor risks and prepare a federal discussion paper to coordinate grid connection, modernization and expansion with provinces, territories and Indigenous partners.

Near-term consequences include heightened market volatility at peaks, altered cross-border flows, and stronger investor focus on transmission, flexible generation, storage and demand-response solutions. Policy momentum toward integrated planning and transmission investment could speed projects but also create regulatory and tariff uncertainty for regional markets such as Alberta, where export capacity and reliability hinge on transmission constraints.

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Sask. NDP says leaked SaskPower document shows rates will double due to coal extension by CJME

Leaked figures from SaskPower circulated by the Saskatchewan NDP indicate that prolonging coal-fired electricity generation could sharply increase consumer bills, potentially doubling residential rates between 2030 and 2040. The utility says the numbers were preliminary modelling, not a finalized forecast, while provincial officials defend an “all-of-the-above” energy strategy that keeps coal on the table.

The episode highlights tensions between short-term reliability concerns and longer-term affordability and climate commitments: extending coal can lock in higher greenhouse gas emissions, raise compliance costs as carbon

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US power use to beat record highs in 2026 and 2027 as AI use surges, EIA says

U.S. electricity demand is projected to climb from 4,195 billion kWh in 2025 to 4,248 billion kWh in 2026 and 4,379 billion kWh in 2027, driven largely by AI-focused data centers and rising electricity use in homes and businesses. The share of renewables is expected to grow to about 27% by 2027 while coal’s role continues to decline, reflecting ongoing fuel switching and additions of wind and solar.

Residential prices are forecast to rise roughly 5% in 2026, raising affordability and policy concerns. These trends imply increased strain on grid operations and transmission capacity, accelerating needs for storage, demand response, and flexible generation to balance variable renewables and new concentrated loads like data centers.

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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.