Alberta
Alberta’s close brush with blackouts stiffens Moe’s resolve
From the Frontier Centre for Public Policy
“We will not risk plunging our homes, schools, hospitals, special care homes and our businesses into the cold and darkness because of the ideological whims of others.”
Alberta’s close brush with possible rolling blackouts stiffens Moe’s resolve to keep the lights on.
Moe reiterates: “We will not attempt the impossible when it comes to power production”
The past weekend proved to be a close-run thing for the Alberta electrical grid, and Saskatchewan Premier Scott Moe is making statements resolving he won’t allow that to happen here.
Specifically, after having nearly completely divested itself of coal-fired power production, Alberta’s dramatic buildout of wind and solar proved impossible to keep the lights on in that province when the chips were down and temperatures hit -35 C, or worse.
“In Saskatchewan, we will not attempt the impossible when it comes to power production in our province,” Moe said in a post on X and other social media the evening of Monday, Jan. 15.
“We will not risk plunging our homes, schools, hospitals, special care homes and our businesses into the cold and darkness because of the ideological whims of others.
“To support the ongoing power demands across western Canada, Boundary Dam 4 has been restarted to ensure families can continue to keep the heat on. Net zero by 2035 is not only impossible, it’s irresponsible as it would leave Saskatchewan and Western Canadian families freezing and in the dark.”
It was in response to the extraordinary events that occurred in Alberta over the weekend, in which Saskatchewan played a key part. And it was also a tacit acknowledgement that as much as SaskPower’s been trying to wean itself off coal, it just can’t do it yet. We still need it to keep the lights on.
The Alberta Electric System Operator (AESO) declared four “grid alerts,” over four days in a row, starting the afternoon of Friday, Jan. 12. Desperately cold temperatures drove up demand for power, just as the same temperatures reduced wind power generation to nothing at times, and close to nothing for most of the weekend. And since the mass of cold air stretched from the Yukon to Texas, every grid operator in between was in the same boat – high demand but short supply. The Southwest Power Pool, which incorporates parts of 14 states from south of Saskatchewan to the Texas Panhandle, as well as Texas grid operator ERCOT, all put out various forms of alerts suggesting their clients reduce electrical consumption.
Staring into the abyss
The first three of Alberta’s grid alerts ran from mid-afternoon until late evening, but the fourth occurred for an hour on Monday morning, as the workweek began.
The second of those grid alerts turned out to be the most significant. On Saturday, Jan. 13, Alberta came within a half-hour of rotating blackouts, an Alberta Electric System Operator spokesperson told CBC News on Jan. 15, confirmed by Alberta Affordability and Utilities Minister Nathan Neudorf the same day.
Indeed, the province stood at the brink of the abyss Saturday night, as rotating blackouts would have impacted different areas of the province for 20 to 30 minutes at a time, as temperatures ranged from -30 to -45 C, depending on where you were in the province. As the province’s grid-scale batteries neared depletion, and there was nothing left to call upon, the AESO and provincial government put out an emergency alert to all cellphones and TV screens, asking Albertans to shut off and unplug everything they could, from electric vehicle chargers to ovens to bathroom fans.
SaskPower ups its game
Alberta had run out of reserves, and with British Columbia unable to provide much more in the way of additional power, and Montana unable provide much at all, Saskatchewan’s Crown utility SaskPower responded, by sending 153 megawatts westward.
And that, in itself, was extraordinary, because limits were pushed to provide Alberta with as much as possible on the intertie between the two provinces.
SaskPower spokesperson Joel Cherry told Pipeline Online by email, “One hundred fifty-three megawatts is the interconnection’s maximum capacity, but it has been derated to 90 megawatts for the past several months because of ongoing work at a interconnection station at the border. AESO and SaskPower Grid Control have agreed to temporarily increase the transmission capacity to make the extra 63 MW available to Alberta when they declare energy alerts.
Contingency reserve had run out
Generally speaking, power needs to be consumed at the instant its produced. There is very little in the way of grid-scale storage in the Canadian electrical grid, although Alberta has built 10 grid-scale batteries totaling 190 megawatts capacity. All of that capacity would come into play Saturday evening.
Grid operators must maintain a small amount of excess capacity at all times, known as a “dispatched contingency reserve” (DCR) The North American Electric Reliability Corporation (NERC) standard is to maintain at least 4 per cent DCR. That’s because if the DCR runs out, all sorts of bad things happen, with voltage drops and frequency variance which then can lead to cascading brownouts, including additional power generating units tripping off and whole areas going without power.
With demand hovering around 11,800 megawatts, four per cent would have been around 472 megawatts DRC. Instead, for the better part of an hour, the DCR was 20 megawatts, or 0.1 per cent, a razor thin margin. The extra 63 megawatts SaskPower sent in part meant the difference between rotating blackouts or not.
In a very real way, it was payback for Alberta’s weeks-long help for SaskPower during the outage of the Poplar River Power Station at Coronach, Saskatchewan. For weeks on end, Alberta supplied Saskatchewan with around 150 megawatts for parts of the day to keep the lights on in this province.
BC played critical role, too
On any given day, imports and exports of power between Alberta and British Columbia will often run up to 600 megawatts going either direction. But with BC also in the deep freeze, it didn’t have much to give at various points during the weekend, including parts of the crucial Saturday evening. Indeed, around the time the grid alert was first sounded on Saturday, Alberta was still exporting 38 megawatts to British Columbia, according to X bot account @ReliableAB, which posts hourly data from the AESO on the status of the Alberta grid.
For a few hours, BC Hydro was able to ramp up its exports to Alberta during the crucial time. At 5:39, they were exporting 251 megawatts to Alberta, nearly 100 megawatts more than Saskatchewan. For the next few hours they sent around 200 megawatts, but it was not enough, and the AESO sent out its alert.
Additionally, during the third grid alert on Sunday, British Columbia ramping up its power exports at a critical time saved the day, as the Alberta Dispatched Contingency Reserve had briefly hit zero. BC bumped its exports up to 496 megawatts while Saskatchewan contributed 153 and Montana nine. Those increased megawatts from British Columbia appeared to make all the difference on that day.
The cat came back, and so did Unit 4
While all of this was going on, SaskPower spent the weekend getting its coal fired power station Boundary Dam Unit 4 back into play. It’s been on cold standby for months. Officially, by federal regulations it was supposed to retire Dec. 31, 2021, but SaskPower has been forced to bring it back into service multiple times to fill a need, such as when Poplar River went offline last June. It was 139 megawatts that could have been used, but SaskPower has shown reluctance to bring it back into the game, as it were.
And that’s what Moe alluded to in his social media post, saying, “We will not risk plunging our homes, schools, hospitals, special care homes and our businesses into the cold and darkness because of the ideological whims of others.”
This was an oblique reference to the push by the federal government to shut down coal and natural gas-fired power generation by 2035, according to the proposed Clean Electricity Regulations, using similar words that Moe has expressed before. The federal preference is for more renewables, in particular wind and solar.
Several years ago, the federal government and Saskatchewan reached an equivalency agreement, recognizing the Boundary Dam Unit 3 Carbon Capture and Storage Project and therefore allowing a few more years operation out of other coal units. But to get that agreement, SaskPower had to agree to adding a further 3,000 megawatts of wind and solar by 2035, according to SaskPower president and CEO Rupen Pandya in an interview Sept. 25, 2023.
Pandya said, “When we signed the equivalency agreement with the federal government in 2014 to allow us to keep using coal to the end of 2030, part of that agreement required us to build out renewables in the province, so that we could operate coal assets, coal generators, past their end of life. And that’s what we’ve been able to do. And we continue to do. So, part of the build out of renewables that’s required as part of the equivalency agreement, that 3,000 megawatts that we need to put in place by 2035. I think 2,000 by 2030. A good tranche of that will be in that south central part of Saskatchewan around the Coronach. So we currently have in the market an RFP for 700 megawatts of wind and solar in the Coronach region, so it’ll will actually go into power, if all goes well with RFPs, in 2027.”
On a typical fall day, SaskPower’s total power demand hovers around 3,000 megawatts. On a cold winter day, it’s closer to 3,500 megawatts. But that’s before widespread adoption of electric vehicles, which the federal government is also trying to force upon Canadians.
Saskatchewan held up to the cold
SaskPower’s Joel Cherry told Pipeline Online on Jan. 15, “Saskatchewan’s system has held up during the extreme cold. We had no major issues.”
However, “Poplar River Power Station was operating at reduced capacity earlier in the weekend because of issues with coal supply. As of yesterday (Sunday) we are back to normal operations there.”
That means the reduced capacity occurred the same day Alberta was stretched nearly to the breaking point.
Asked if we lost a major unit, while Alberta was at the same time in crisis, what did we have for backup? Was there additional capacity available from Manitoba and/or Southwest Power Pool?” Cherry replied, “SaskPower has maintained adequate reserves to allow for the continued stability of the system even if we lost a large unit. We have also been importing from Manitoba and the SPP when available.
Collapse of wind
Major factors in Alberta’s power woes were the utter collapse of wind and solar power generation. Even at its best, solar power production during the day was around a third of maximum capacity.
Wind turbines started shutting down Thursday night as temperatures plummeted below -30 C, the temperature where cold brittle behaviour of materials risks catastrophic failure of the turbines. The three evening grid alerts all came on as the sun went down and the roughly 500 megawatts (of 1,650 megawatts capacity) faded with the setting sun. On Friday, Alberta’s wind generation fell to 6 megawatts at one point. It was minimal on Saturday. On Sunday morning, multiple times wind hit zero – not one megawatt from the 4,481 megawatts of wind generation capacity.
SaskPower’s Where Your Power Comes From webpage noted on Friday, Jan. 14, Saskatchewan’s 617 megawatts of grid-scale wind produced a 24-hour average of 21 megawatts. On Saturday, that number was 19. On Sunday, the average was 22 megawatts. Unlike the previous week, where there were seven days where wind in Saskatchewan hit zero power output, Jan. 12-14 did not have any periods of zero.
“We had four hours of less than 10 megawatts wind output on Jan 12, despite the low average through the day on Jan. 13 we only had a half hour below 10 megawatts and on Jan 14 we had 7.8 hours below 10 megawatts,” Cherry said.
Ten megawatts is 1.6 per cent of total grid-scale wind capacity in Saskatchewan.
As for Unit 4, in April of 2023, Pipeline Online reported Cherry said at the time, “We’re going to keep BD 4 in laid up status until Great Plains Power Station comes online, or until March 31, 2024.”
The most recent plan, as of April, 2023, was to shut down, for good, Unit 4 by March 31, 2023. Whether Moe’s statement on Jan. 15 will extend that is unknown at the time of writing.
Brian Zinchuk is editor and owner of Pipeline Online, and occasional contributor to the Frontier Centre for Public Policy. He can be reached at [email protected]. For further information read the original publication here.
Alberta
Alberta Next Panel calls to reform how Canada works
From the Fraser Institute
By Tegan Hill
The Alberta Next Panel, tasked with advising the Smith government on how the province can better protect its interests and defend its economy, has officially released its report. Two of its key recommendations—to hold a referendum on Alberta leaving the Canada Pension Plan, and to create a commission to review programs like equalization—could lead to meaningful changes to Canada’s system of fiscal federalism (i.e. the financial relationship between Ottawa and the provinces).
The panel stemmed from a growing sense of unfairness in Alberta. From 2007 to 2022, Albertans’ net contribution to federal finances (total federal taxes paid by Albertans minus federal money spent or transferred to Albertans) was $244.6 billion—more than five times the net contribution from British Columbians or Ontarians (the only other two net contributors). This money from Albertans helps keep taxes lower and fund government services in other provinces. Yet Ottawa continues to impose federal regulations, which disproportionately and negatively impact Alberta’s energy industry.
Albertans were growing tired of this unbalanced relationship. According to a poll by the Angus Reid Institute, nearly half of Albertans believe they get a “raw deal”—that is, they give more than they get—being part of Canada. The Alberta Next Panel survey found that 59 per cent of Albertans believe the federal transfer and equalization system is unfair to Alberta. And a ThinkHQ survey found that more than seven in 10 Albertans feel that federal policies over the past several years hurt their quality of life.
As part of an effort to increase provincial autonomy, amid these frustrations, the panel recommends the Alberta government hold a referendum on leaving the Canada Pension Plan (CPP) and establishing its own provincial pension plan.
Albertans typically have higher average incomes and a younger population than the rest of the country, which means they could pay a lower contribution rate under a provincial pension plan while receiving the same level of benefits as the CPP. (These demographic and economic factors are also why Albertans currently make such a large net contribution to the CPP).
The savings from paying a lower contribution rate could result in materially higher income during retirement for Albertans if they’re invested in a private account. One report found that if a typical Albertan invested the savings from paying a lower contribution rate to a provincial pension plan, they could benefit from $189,773 (pre-tax) in additional retirement income.
Clearly, Albertans could see a financial benefit from leaving the CPP, but there are many factors to consider. The government plans to present a detailed report including how the funds would be managed, contribution rates, and implementation plan prior to a referendum.
Then there’s equalization—a program fraught with flaws. The goal of equalization is to ensure provinces can provide reasonably comparable public services at reasonably comparable tax rates. Ottawa collects taxes from Canadians across the country and then redistributes that money to “have not” provinces. In 2026/27, equalization payments is expected to total $27.2 billion with all provinces except Alberta, British Columbia and Saskatchewan receiving payments.
Reasonable people can disagree on whether or not they support the principle of the program, but again, it has major flaws that just don’t make sense. Consider the fixed growth rate rule, which mandates that total equalization payments grow each year even when the income differences between recipient and non-recipient provinces narrows. That means Albertans continue paying for a growing program, even when such growth isn’t required to meet the program’s stated objective. The panel recommends that Alberta take a leading role in working with other provinces and the federal government to reform equalization and set up a new Canada Fiscal Commission to review fiscal federalism more broadly.
The Alberta Next Panel is calling for changes to fiscal federalism. Reforms to equalization are clearly needed—and it’s worth exploring the potential of an Alberta pension plan. Indeed, both of these changes could deliver benefits.
Alberta
Alberta project would be “the biggest carbon capture and storage project in the world”
Pathways Alliance CEO Kendall Dilling is interviewed at the World Petroleum Congress in Calgary, Monday, Sept. 18, 2023.THE CANADIAN PRESS/Jeff McIntosh
From Resource Works
Carbon capture gives biggest bang for carbon tax buck CCS much cheaper than fuel switching: report
Canada’s climate change strategy is now joined at the hip to a pipeline. Two pipelines, actually — one for oil, one for carbon dioxide.
The MOU signed between Ottawa and Alberta two weeks ago ties a new oil pipeline to the Pathways Alliance, which includes what has been billed as the largest carbon capture proposal in the world.
One cannot proceed without the other. It’s quite possible neither will proceed.
The timing for multi-billion dollar carbon capture projects in general may be off, given the retreat we are now seeing from industry and government on decarbonization, especially in the U.S., our biggest energy customer and competitor.
But if the public, industry and our governments still think getting Canada’s GHG emissions down is a priority, decarbonizing Alberta oil, gas and heavy industry through CCS promises to be the most cost-effective technology approach.
New modelling by Clean Prosperity, a climate policy organization, finds large-scale carbon capture gets the biggest bang for the carbon tax buck.
Which makes sense. If oil and gas production in Alberta is Canada’s single largest emitter of CO2 and methane, it stands to reason that methane abatement and sequestering CO2 from oil and gas production is where the biggest gains are to be had.
A number of CCS projects are already in operation in Alberta, including Shell’s Quest project, which captures about 1 million tonnes of CO2 annually from the Scotford upgrader.
What is CO2 worth?
Clean Prosperity estimates industrial carbon pricing of $130 to $150 per tonne in Alberta and CCS could result in $90 billion in investment and 70 megatons (MT) annually of GHG abatement or sequestration. The lion’s share of that would come from CCS.
To put that in perspective, 70 MT is 10% of Canada’s total GHG emissions (694 MT).
The report cautions that these estimates are “hypothetical” and gives no timelines.
All of the main policy tools recommended by Clean Prosperity to achieve these GHG reductions are contained in the Ottawa-Alberta MOU.
One important policy in the MOU includes enhanced oil recovery (EOR), in which CO2 is injected into older conventional oil wells to increase output. While this increases oil production, it also sequesters large amounts of CO2.
Under Trudeau era policies, EOR was excluded from federal CCS tax credits. The MOU extends credits and other incentives to EOR, which improves the value proposition for carbon capture.
Under the MOU, Alberta agrees to raise its industrial carbon pricing from the current $95 per tonne to a minimum of $130 per tonne under its TIER system (Technology Innovation and Emission Reduction).
The biggest bang for the buck
Using a price of $130 to $150 per tonne, Clean Prosperity looked at two main pathways to GHG reductions: fuel switching in the power sector and CCS.
Fuel switching would involve replacing natural gas power generation with renewables, nuclear power, renewable natural gas or hydrogen.
“We calculated that fuel switching is more expensive,” Brendan Frank, director of policy and strategy for Clean Prosperity, told me.
Achieving the same GHG reductions through fuel switching would require industrial carbon prices of $300 to $1,000 per tonne, Frank said.
Clean Prosperity looked at five big sectoral emitters: oil and gas extraction, chemical manufacturing, pipeline transportation, petroleum refining, and cement manufacturing.
“We find that CCUS represents the largest opportunity for meaningful, cost-effective emissions reductions across five sectors,” the report states.

Fuel switching requires higher carbon prices than CCUS.
Measures like energy efficiency and methane abatement are included in Clean Prosperity’s calculations, but again CCS takes the biggest bite out of Alberta’s GHGs.
“Efficiency and (methane) abatement are a portion of it, but it’s a fairly small slice,” Frank said. “The overwhelming majority of it is in carbon capture.”

From left, Alberta Minister of Energy Marg McCuaig-Boyd, Shell Canada President Lorraine Mitchelmore, CEO of Royal Dutch Shell Ben van Beurden, Marathon Oil Executive Brian Maynard, Shell ER Manager, Stephen Velthuizen, and British High Commissioner to Canada Howard Drake open the valve to the Quest carbon capture and storage facility in Fort Saskatchewan Alta, on Friday November 6, 2015. Quest is designed to capture and safely store more than one million tonnes of CO2 each year an equivalent to the emissions from about 250,000 cars. THE CANADIAN PRESS/Jason Franson
Credit where credit is due
Setting an industrial carbon price is one thing. Putting it into effect through a workable carbon credit market is another.
“A high headline price is meaningless without higher credit prices,” the report states.
“TIER credit prices have declined steadily since 2023 and traded below $20 per tonne as of November 2025. With credit prices this low, the $95 per tonne headline price has a negligible effect on investment decisions and carbon markets will not drive CCUS deployment or fuel switching.”
Clean Prosperity recommends a kind of government-backstopped insurance mechanism guaranteeing carbon credit prices, which could otherwise be vulnerable to political and market vagaries.
Specifically, it recommends carbon contracts for difference (CCfD).
“A straight-forward way to think about it is insurance,” Frank explains.
Carbon credit prices are vulnerable to risks, including “stroke-of-pen risks,” in which governments change or cancel price schedules. There are also market risks.
CCfDs are contractual agreements between the private sector and government that guarantees a specific credit value over a specified time period.
“The private actor basically has insurance that the credits they’ll generate, as a result of making whatever low-carbon investment they’re after, will get a certain amount of revenue,” Frank said. “That certainty is enough to, in our view, unlock a lot of these projects.”
From the perspective of Canadian CCS equipment manufacturers like Vancouver’s Svante, there is one policy piece still missing from the MOU: eligibility for the Clean Technology Manufacturing (CTM) Investment tax credit.
“Carbon capture was left out of that,” said Svante co-founder Brett Henkel said.
Svante recently built a major manufacturing plant in Burnaby for its carbon capture filters and machines, with many of its prospective customers expected to be in the U.S.
The $20 billion Pathways project could be a huge boon for Canadian companies like Svante and Calgary’s Entropy. But there is fear Canadian CCS equipment manufacturers could be shut out of the project.
“If the oil sands companies put out for a bid all this equipment that’s needed, it is highly likely that a lot of that equipment is sourced outside of Canada, because the support for Canadian manufacturing is not there,” Henkel said.
Henkel hopes to see CCS manufacturing added to the eligibility for the CTM investment tax credit.
“To really build this eco-system in Canada and to support the Pathways Alliance project, we need that amendment to happen.”
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