Affordability and Utilities minister Nathan Neudorf. (Government of Alberta)

By rdnewsNOW Staff

Electricity

New amendment act aiming to modernize Alberta’s power grid

Mar 7, 2024 | 5:13 PM

Alberta’s government says it is modernizing the province’s electricity system through legislation that will ensure Alberta’s grid is affordable, reliable and sustainable.

The Alberta government has proclaimed the Electricity Statutes (Modernizing Alberta’s Electricity Grid) Amendment Act, effective March 5. Provincial officials say the act and its accompanying regulatory amendments will help Alberta’s electricity system adapt to new technologies and the changing ways that consumers interact with the grid. By modernizing the province’s electricity grid, with the input of Albertans and industry stakeholders, officials say Alberta’s government is continuing to work towards a carbon-neutral electricity grid by 2050.

“By proclaiming this legislation, we are taking another step towards ensuring an affordable, reliable and sustainable electricity system that will meet the needs of Albertans while encouraging innovation and investment in the energy sector,” says Nathan Neudorf, Minister of Affordability and Utilities. “This legislation is just one piece of our larger effort to modernize Alberta’s electricity system.”

Through this legislation, Alberta’s government says it is supporting affordability, encouraging investment and building grid capacity in several ways. This, says the government, includes allowing Alberta businesses to build more energy storage and more on-site power generation with the option to sell excess power to the grid. Energy storage is said to be a key tool for grid stability and reliability by storing under-utilized power for later use and responding immediately to unexpected shortages like during the January 13 cold snap which resulted in a province-wide grid alert.

“The Electricity Statutes (Modernizing Alberta’s Electricity Grid) Amendment Act introduces critical provisions for unlimited self-supply and export, providing large industrial operations the flexibility and choice essential for optimizing electricity costs and maintaining competitiveness within the province,” adds Megan Gill, executive director, Alberta Direct Connect Consumer Association (ADC). “This legislative change is foundational for ensuring a more resilient, efficient and sustainable electricity market in Alberta.”

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Provincial officials say the newly proclaimed regulations will also provide greater opportunities for commercial businesses to generate their own power with the option to benefit from selling their excess energy to the grid. Not only does this benefit Albertans by reducing demand on the system and therefore reducing the cost of electricity, adds the government, but it is yet another reason why Alberta continues to be a destination of choice for investment, say provincial officials.

“We are pleased that Bill 22 has been proclaimed and energy storage can now play a much larger role in delivering value to Alberta electricity consumers,” shares Vittoria Bellissimo, president and CEO, CanREA. “Our members will deploy these innovative technologies to reduce power costs, support low-cost renewable integration, optimize wires investments and keep lights on across the province.”

By proclaiming the Electricity Statutes (Modernizing Alberta’s Electricity Grid) Amendment Act, Alberta’s government says it is following through on its commitment to wind-down the Balancing Pool and stand up for Alberta taxpayers. Further, government officials say the proclamation will allow the Minister of Affordability and Utilities to continue proactive transmission and distribution planning. According to the government, energy storage complements this proactive planning by providing non-wire solutions, reducing the need to build new infrastructure. This, say officials, will maximize the use of Alberta’s existing grid infrastructure while minimizing the need for costly upgrades, saving Alberta ratepayers their hard-earned dollars.

“Given that ATCO Electric’s large and remote service territory spans more than two-thirds of the province but serves only 10 per cent of Alberta’s population, it’s crucial to continue our grid modernization efforts with new systems and technologies that can drive long-term affordability and reliability,” explains Melanie Bayley, president, ATCO Electric. “That’s why we are looking forward to working with the Government of Alberta – ensuring the implementation of Bill 22 and other energy initiatives to continue to bring meaningful benefits to residential and industrial customers alike.”

“As Alberta’s largest electric distribution service provider, FortisAlberta supports Albertans in the ongoing energy transition every day,” exclaims Janine Sullivan, president and CEO, FortisAlberta . “We are pleased to have been engaged in the government-led consultations that informed the province’s new energy polices, and look forward to ensuring our customers continue to receive affordable and reliable service using innovative approaches to optimizing the grid.”

Alberta government quick facts

• Alberta currently has 190 MW of energy storage connected to the grid, with 398 MW more with approvals and 140 MW under construction. Energy storage currently connected to the grid often supplies contingency reserve services to support grid stability.