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Alberta

Alberta won the energy lottery

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8 minute read

From the Frontier Centre for Public Policy

By Brian Zinchuk

Some people blamed a small handful of natural gas plants being out of operation. Which is a greater concern – two of 87 gas fired units being down, or 88 of 88 wind and solar farms being down at the same time?

Alberta won the energy lottery millions of years ago. I’m not talking scratchers, but the Powerball. You know, the big American lottery that every so often is over a billion dollars?

Except Alberta’s winnings are much, much larger than that.

So why is it the weekend of Jan. 12-15, the jurisdiction that has more oil, gas and coal than God, because God gave all his to Alberta, was forced to beg its neighbours if they could spare a megawatt?

Because that’s what happened. It got so desperate the night of Saturday, Jan. 13, that the neighbours did not have another megawatt to spare. The Alberta Electric System Operator (AESO) and the government of Alberta sent out an emergency alert to every cellphone and TV screen in the province, calling on people to shut off everything from stoves to bathroom fans, as well as unplug block heaters and electric vehicles.

The only way this could happen is complete and utter incompetence at the top. It started with Rachel Notley, but Jason Kenney didn’t seem to do much to reverse her moves. Only Danielle Smith seems to have finally said, “No more!”

Former Alberta premier Rachel Notley’s push to get rid of coal as soon as possible and build as much wind and solar is a prime example of incompetence. While most coal plants converted to natural gas, not all units did, and hundreds of megawatts of cheap, reliable power were lost. Meanwhile, in the last two years Alberta’s wind and solar basically doubled, projects that mostly got their start under Notley. And yet there were moments during the weekend where both wind and solar hit zero output, sometimes at same time. Wind and solar’s theoretical capacity of 6,131 megawatts was a big fat zero.

And yet when Notley announced her departure as leader of the NDP on Jan. 16, she put out a video proclaiming the elimination of coal-fired power and kickstarting renewables among her greatest accomplishments.

Some people blamed a small handful of natural gas plants being out of operation. Which is a greater concern – two of 87 gas fired units being down, or 88 of 88 wind and solar farms being down at the same time, as happened the morning of Jan. 14? Indeed, the vast majority of the 87 gas units and 2 coal units were indeed providing nearly all of Alberta’s power throughout the weekend.

Those four days saw the AESO issue four “grid alerts” in a row. The second one was a much closer-run thing. As a last resort, they put all the grid-scale batteries into play, and those batteries were running out of juice after just an hour. The contingency reserve went to effectively zero.

If the province had not issued its emergency alert, the AESO since reported they were within a half hour of calling for rotating blackouts.

Thankfully, it did work. But what about next time?

The next step was rotating blackouts, and, if that didn’t work, major load shedding. And if that wasn’t enough, a replay of Texas, February, 2021, when 246 died. Except there would be more bodies, because it’s a hell of a lot colder here.

Lessons

There are some lessons from that weekend, and especially Saturday:

  1. Wind and solar totally and utterly fail when we need power the most.
  2. Do NOT expect your neighbour to be able to help you out. Often they can, and do. But as we saw Jan. 13, when your boat is sinking, your neighbour’s may be sinking faster. This was evident by the small amount of power BC sent Alberta. They routinely send 3x that. Montana was sending effectively nothing. And even though Saskatchewan was maxed out in sending what we had, it was not enough to bail out Alberta. Interties are good in many ways, but they must not be entirely relied upon.
  3. As a result, each jurisdiction must ensure it has ample supply within its own borders and control. And that includes enough dispatchable power to backfill every single megawatt of wind and solar, plus the possible loss of one of its baseload units. That 4 per cent contingency reserve is really not enough.
  4. If Alberta did go into rotating blackouts:
    1. What would have happened if that half hour turned out into half a day, or longer, with the temperature at -35 C as it was in Calgary? How many lives might be on the line? What would the property loss be, from things like frozen pipes?
    2. Whose head would the public be calling for on Monday morning? Oh wait, there was a fourth grid alert that morning.
  5. Alberta has more than five million vehicles registered. What would have happened if five million EVs were all plugged in that weekend?
  6. We cannot, we must not, allow this to happen here in Saskatchewan, or again in Alberta. But yet SaskPower keeps saying we’re going to build an additional 3,000 megawatts of wind and solar. We are on Alberta’s path. Alberta already has 6,131 megawatts of wind and solar. How’s that working out for them? Friday night – 6 megawatts. Saturday night – 90. Sunday morning, zero.

Fossil fuels account for up to 94 per cent of Alberta’s and 89 per cent of Saskatchewan’s power on any given day. We cannot, must not, allow ourselves to think any amount of wind and solar can keep us alive when the temperatures hit -35 C. That weekend in Alberta proved it.

Brian Zinchuk is editor an owner of Pipeline Online and occasional contributor to the Frontier Centre for Public Policy. He can be reached at [email protected].

Alberta

Working to avoid future US tariffs, Alberta signs onto U.S. energy pact

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Louisiana Governor Jeff Landry and New Hampshire Governor Chris Sununu of the Governors’ Coalition for Energy Security

Premier Danielle Smith has joined the Governors’ Coalition for Energy Security to further support advocacy of Alberta’s energy and environmental interests with key U.S. states.

The coalition was established in September 2024 by U.S. State governors Jeff Landry (Louisiana) and Chris Sununu (New Hampshire) with the aim of ensuring energy security, lower energy costs, increased reliability, sustainable economic development and sensible management of energy resources and the environment. With 12 U.S. states already signatories to the coalition, Alberta is the first non-U.S. state to enter into this agreement.

By expanding energy ties with the U.S. and promoting cross-border energy trade and participation, Alberta is helping to build upon its North American Energy strategy. Alberta already accounts for 56 per cent of all oil imports to the U.S. – twice as much as Mexico, Saudi Arabia and Iraq combined – which is helping to drive job creation and prosperity on both sides of the border. Natural gas also plays an important role in North America’s energy mix. Alberta is the largest producer of natural gas in Canada and remains positioned to support the U.S. in filling their domestic supply gaps.

“I am honoured to join the Governors’ Coalition for Energy Security and would like to extend my sincere thanks to governors Landry and Sununu for the invitation. Alberta plays a vital role in North American energy security, serving as the largest supplier of crude oil and natural gas to the United States. With 200 billion barrels of recoverable oil, 200 trillion cubic feet of recoverable natural gas, significant natural gas liquids and ample pore space for carbon capture, Alberta’s contribution is set to grow even further as we look to work with the Trump Administration and other U.S. partners to increase our pipeline capacity to our greatest friend and ally, the United States. We are proud to collaborate with this coalition of allied states in advancing energy security, reliability and affordability for Americans and Canadians.”

Danielle Smith, Premier

“Our mission as an organization has not changed but Alberta’s welcome arrival to our group sparked a conversation about what our core mission is, and that is ensuring energy security in all its forms. Our members all share the common goal of enhancing and protecting energy options for our people and businesses, which leads to lower energy costs, increased reliability, sustainable economic development and wise management of energy resources and the environment. I welcome Premier Smith and the insights she will bring as the leader from a fellow energy-producing province, that like my state, is under a federal system of government where national imperatives are not always aligned with state or provincial interests.”

Jeff Landry, governor of Louisiana

Alberta is a global leader in emissions reduction technology and clean energy solutions. The province has captured about 14 million tonnes of carbon dioxide through carbon capture, utilization and storage technology, and has the ability to support the U.S. in developing new infrastructure and supply chains for future energy markets in the areas of hydrogen, renewables, small modular reactors and others.

Alberta is also unlocking its untapped geological potential to help meet the increasing demand for minerals – many of which are used worldwide to manufacture batteries, cell phones, energy storage cells and other products. This includes the province’s lithium sector where Alberta’s government is supporting several innovative projects to develop new ways to extract and concentrate lithium faster and with higher recovery rates that are less capital and energy intensive and have a smaller land-use footprint.

As part of this coalition, Alberta looks forward to sharing best practices with states that already have expertise in these areas.

Quick facts

  • The U.S. is Alberta’s largest trading partner, with C$188 billion in bilateral trade in 2023.
  • In 2023, energy products accounted for approximately C$133.6 billion, or more than 80 per cent of Alberta’s exports to the U.S.
  • The Governors’ Coalition for Energy Security’s 12 signatory states include Louisiana, New Hampshire, Indiana (Governor Eric Holcomb), Alabama (Governor Kay Ivey), Georgia (Governor Brian Kemp), Tennessee (Governor Bill Lee), South Dakota (Governor Kristi Noem), Mississippi (Governor Tate Reeves), Arkansas (Governor Sarah Huckabee Sanders), Oklahoma (Governor Kevin Stitt), Wyoming (Governor Mark Gordon) and Virginia (Governor Glenn Youngkin).

 

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Alberta

New red tape reporting website will help ramp up housing construction in Alberta

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Helping builders by putting an end to housing delays

Alberta’s new Stop Housing Delays online portal will allow developers, municipalities and other housing partners to report red tape and unnecessary home-building delays.

Alberta’s government is focused on ensuring Albertans have access to the housing they need, and that means working to streamline processes, cut red tape and reduce delays that are slowing housing construction down. As part of this work, government has launched a new online portal to help in these efforts.

The Stop Housing Delays online portal is now available for developers and municipal authorities to help identify areas that are preventing fast and efficient residential construction. This portal will help government identify and address barriers to building homes across the province.

“The Stop Housing Delays portal will allow Alberta’s government to hear directly from developers, municipalities and other partners on where delays are happening in the construction process. This will help identify and remove barriers, ultimately getting homes built faster and continuing Alberta’s record home-building pace.”

Jason Nixon, Minister of Seniors, Community and Social Services

“Alberta’s government will continue to work with municipalities and find solutions to speed up the home-building process. The Stop Housing Delays portal will give us another tool to inform those discussions and identify areas where we can improve the pace of home building.”

Ric McIver, Minister of Municipal Affairs

Once developers, municipalities or industry partners have submitted their issue using the online form, government will collect and assess the information provided. Alberta’s government will be taking a collaborative, cross-ministry approach to ensure the appropriate departments are working together to find solutions where possible. Solutions may range from minor changes to policy reform.

Alberta’s government continues to support builders and encourage new residential housing construction by reducing red tape, incentivizing housing construction and supporting innovative strategies to build homes faster than ever.

“This webpage is an excellent opportunity to gather knowledge and further eliminate red tape. Government has been persistent in our approach of cutting red tape and removing roadblocks, and this will help to speed up residential construction. I look forward to hearing from developers and our other partners on how we can help get projects moving and Albertans in homes.”

Dale Nally, Minister of Service Alberta and Red Tape Reduction

Alberta continues to see strong housing starts and increases while other provinces across Canada are seeing a reduction in housing starts. The first half of 2024 saw 9,903 apartment unit starts in the province. This marks the highest amount in any half year in Alberta’s history, breaking the previous record of 9,750 set in 1977. Albertans will benefit from 33,577 new housing starts from January through September 2024, up 35 per cent from the same period last year. Alberta’s government remains focused on working with industry and non-profit partners to ensure that the province’s growing population has access to the housing it needs.

“This portal is a valuable tool for industry to highlight gaps, barriers and delays that may need to be prioritized and addressed by either local or provincial governments. Real solutions can only emerge through transparency, open communication and collaboration. This is an important step toward identifying the unique challenges each region and municipality faces in delivering attainable housing.”

Scott Fash, chief executive officer, BILD Alberta Association

Quick Facts

  • Housing starts for January – September 2024 compared with January – September 2023
    • Provincewide: 33,577 compared with 24,904 (up 35 per cent)
    • Edmonton: 13,359 compared with 9,099 (up 47 per cent)
    • Calgary: 17,414 compared with 14,141 (up 23 per cent)
    • Lethbridge: 599 compared with 148 (up 305 per cent)
    • Red Deer: 314 compared with 146 (up 115 per cent)
  • Data shows Alberta had 10,699 purpose-built rentals, making up 32 per cent of all housing starts.
  • Since 2019, Alberta’s government has invested almost $850 million to build more than 5,100 units and close to 900 shelter spaces. This includes projects we have committed to, that are in progress and that are complete.
  • Together with its partners, Alberta’s government is supporting $9 billion in investments into affordable housing to support 25,000 additional low-income households by 2031.

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