Alberta’s energy grid is facing growing instability as the province grapples with challenges associated with the changing climate. Two recent emergency alerts urging immediate power conservation—one during last winter and another in spring— indicate that the current electrical grid is struggling to keep up with energy demands. These incidents reveal shortcomings within the province’s energy infrastructure, prompting a critical evaluation of Alberta’s “energy-only” market.
The province has experienced 16 grid alerts since 2022 and the situation has been described as a “lack of reliability.” A report by Alberta’s Market Surveillance Administrator (MSA) analyzed how system stress—caused by either excess demand, insufficient power, or both—can rapidly escalate into severe problems. The study made seven recommendations to the Alberta Electric System Operator (AESO) and power generators to prevent future occurrences.
Alberta’s unique energy-only market, created nearly 20 years ago, was meant to encourage competition and investment in new power sources. While it has allowed for quick technological progress and policy changes like carbon pricing, it has also shown weaknesses in adapting to the rise of renewable energy.
The rise of low-cost renewables, particularly wind and solar, has put a strain on the market. According to the Canadian Climate Institute, the market’s reliance on high prices to trigger new investments has led to a lack of competition. The current market system, which prioritizes non-renewable resources due to their lower transmission costs, has inadvertently hampered the growth of renewables.
Renewable energy faced another challenge in Alberta with the government’s Renewed Path Forward for Renewable Energy. To limit negative impacts on agricultural production and scenic landscapes, this new policy prohibits renewable developments on certain lands unless coexistence with crops or livestock can be proven. Additionally, buffer zones of at least 35 kilometres will be created around protected areas and designated pristine viewscapes.
Adapting the grid to meet modern energy demands is crucial for ensuring that Alberta’s energy infrastructure can keep pace with the rapidly changing landscape. As these stories unfold, WeMaple is committed to highlighting how Albertans are innovating to tackle these growing challenges.
