Alberta’s recent electricity reforms penalize renewables, neglect energy storage investments

Alberta’s government has introduced sweeping reforms to its electricity market, ostensibly to balance affordability, reliability, and sustainability. However, these changes disproportionately burden the renewable energy sector, hinder its growth, and fail to address the critical need for energy storage solutions essential for a modern, resilient grid.

Marlaina Danielle Smith ECA is a Canadian politician and journalist who has been serving as the 19th premier of Alberta since October 11, 2022, and leader of the United Conservative Party since October 6, 2022. Smith entered provincial politics in 2009, becoming the leader of the Wildrose Party.

One of the most contentious aspects of these reforms is the cost-causation model for new transmission infrastructure. By shifting the financial responsibility to developers, the government adds a significant barrier to renewable energy projects, which often require new transmission lines to connect remote, resource-rich locations to the grid.

This approach not only stifles renewable growth but also discourages investment in innovative energy projects, effectively favoring traditional fossil fuel-based generation.

The emphasis on reliability, while crucial, has been framed in a way that appears to penalize renewables for their intermittent nature. The transition to a day-ahead market, where power generators must commit their output 24 hours in advance, poses significant challenges for renewable energy providers. Unlike fossil fuel plants, renewables like wind and solar depend on variable weather conditions, making precise forecasting difficult.

This reform risks creating an uneven playing field, favoring traditional generators over clean energy sources.

Some forecasts suggest Alberta will exceed its goal of 30 per cent renewable electricity by 2030, much of which is wind or solar. New projects like the solar farm in Edmonton’s river valley are contributing to the surge. (Photo: Amber Bracken / The Narwhal)

Despite Alberta’s need for a resilient grid to accommodate growing electricity demand, the reforms neglect to incentivize energy storage solutions such as batteries. Storage is key to mitigating the intermittency of renewables, balancing supply and demand, and reducing reliance on backup fossil fuel generators.

Yet, the government’s plans fail to allocate sufficient resources or policy support to encourage storage deployment.

Alberta’s focus on restoring affordability and reliability is rooted in its accelerated coal phase-out and the ensuing challenges of integrating renewables.

However, the punitive measures targeting the renewable sector undermine its potential as a sustainable, cost-effective solution for future energy needs. Without robust investments in storage and equitable policies for renewable integration, these reforms risk stalling Alberta’s energy transition, leaving the province reliant on outdated systems ill-equipped to handle the demands of a rapidly evolving energy landscape.