Alberta
Province “rewiring” Alberta’s electricity grid for growth
Rewiring Alberta’s electricity market
Alberta’s government is making changes to the province’s electricity market rules to restore the balance between affordability, reliability and sustainability.
Alberta’s government is modernizing the province’s electricity system to put Albertans first, restoring the balance between affordability, reliability and sustainability. To achieve this, Alberta’s government continues to work with its partners on power market reforms. Alberta’s transmission policies are also being updated to improve reliability, increase efficiency, protect ratepayers, and align Alberta with other jurisdictions. Alberta’s government is committed to the province’s unique competitive electricity market, which provides consumers with choice and makes the province a premier destination for investors.
Alberta’s electricity system was designed for a small number of baseload power plants generating reliable electricity. In 2016, Alberta’s accelerated coal phase out was rushed through without proper due diligence. With a growing supply of intermittent renewables instead of natural gas, the province’s power grid and prices can become as volatile as the weather.
The thousands of kilometres of new transmission lines that were required to connect renewables added costs for Albertans, and back-up sources are required to keep the lights on. As demand for electricity only continues to increase, it’s expected that Alberta’s need for electricity could more than quadruple in the coming decades. It is critical that Alberta’s government make changes now to ensure the affordability, reliability, and sustainability of the provincial grid in the decades to come as demand surges.
“Albertans deserve a modern electricity system that prioritizes affordability and reliability. As our electricity supply mix evolves so should our policies, and these updates to transmission policies are essential to ensuring Albertans are well-served by our electricity system for years to come.”
Following three years of engagement with industry, Alberta’s government is making changes to ensure the province’s ratepayers are no longer burdened with the full costs of building new transmission lines. Instead, costs for new transmission infrastructure will be assigned on a cost-causation basis going forward. This will incentivise new power plants to be built in optimal locations that take advantage of existing infrastructure, saving costs for both Alberta ratepayers and job creators. As a result of engagement with industry, Alberta’s government is aligning the province with other jurisdictions by giving the Alberta Electric System Operator (AESO) more market-based tools to increase the efficiency of the province’s grid, prioritizing the use of pre-existing infrastructure.
Updating Alberta’s Transmission Regulation is a significant and necessary step in modernizing the province’s electricity system. To enhance grid reliability, Alberta’s government is also making changes to streamline the process to build and maintain connections between our electricity grid and other jurisdictions. This will reduce red tape and enable critical improvements to happen more quickly. This will also help improve reliability by restoring the electricity grid connections between Alberta and British Columbia, as well as expanding the connections between Alberta and Saskatchewan.
“This is a positive milestone borne out of significant engagement and consultation with industry stakeholders, our partner agencies and the Government of Alberta. We appreciate the tremendous investment of time and effort that everyone has put into this process to reach this point, and we look forward to additional engagement in 2025 to further the detailed market design.”
Over the past year, the AESO has engaged extensively with industry on the technical design of a Restructured Energy Market with direction from Alberta’s government. A key aspect of these market reforms includes moving to a day-ahead market, where power generators will be required to commit their power on the previous day, rather than a couple of hours beforehand, making the system better positioned to respond to power fluctuations. This will increase reliability and stability, helping reduce the risk of potential grid alerts. With these changes, Alberta’s government is ensuring that reliability is prioritized, strengthening the grid so that Albertans can get the power they need regardless of the weather.
“Market design features like a day ahead market can help significantly reduce the likelihood of future grid alerts and will ensure that all necessary generators needed to meet electricity demand are online to provide power.”
Minister of Affordability and Utilities Nathan Neudorf has sent a letter to inform the AESO of the government’s latest decisions on changes to the Transmission Regulation and further guide the ongoing technical design of a Restructured Energy Market. Alberta’s government intends to bring forward legislation to support these changes in the new year. In the meantime, the temporary measures enacted by Alberta’s government on July 1, 2024 will continue to protect Albertans, ensuring reliable power and predictable utility bills.
Quick facts
- The Alberta Electric System Operator (AESO) manages and operates the provincial power grid on behalf of Albertans.
- The Market Surveillance Administrator (MSA) is a public agency that protects and promotes the fair, efficient and openly competitive operation of Alberta’s electricity and retail natural gas markets.
The new Red Deer Justice Centre will help Albertans resolve their legal matters faster.
Albertans deserve to have access to a fair, accessible and transparent justice system. Modernizing Alberta’s courthouse infrastructure will help make sure Alberta’s justice system runs efficiently and meets the needs of the province’s growing population.
Alberta’s government has invested $191 million to build the new Red Deer Justice Centre, increasing the number of courtrooms from eight to 12, allowing more cases to be heard at one time.
“Modern, accessible courthouses and streamlined services not only strengthen our justice
system – they build safer, stronger communities across the province. Investing in the new Red Deer Justice Centre is vital to helping our justice system operate more efficiently, and will give people in Red Deer and across central Alberta better access to justice.”
Government of Alberta and Judiciary representatives with special guests at the Red Deer Justice Centre plaque unveiling event April 22, 2025.
On March 3, all court services in Red Deer began operating out of the new justice centre. The new justice centre has 12 courtrooms fully built and equipped with video-conference equipment to allow witnesses to attend remotely if they cannot travel, and vulnerable witnesses to testify from outside the courtroom.
The new justice centre also has spaces for people taking alternative approaches to the traditional courtroom trial process, with the three new suites for judicial dispute resolution services, a specific suite for other dispute resolution services, such as family mediation and civil mediation, and a new Indigenous courtroom with dedicated venting for smudging purposes.
“We are very excited about this new courthouse for central Alberta. Investing in the places where people seek justice shows respect for the rights of all Albertans. The Red Deer Justice Centre fills a significant infrastructure need for this rapidly growing part of the province. It is also an important symbol of the rule of law, meaning that none of us are above the law, and there is an independent judiciary to decide disputes. This is essential for a healthy functioning democracy.”
“Public safety and access to justice go hand in hand. With this investment in the new Red Deer Justice Centre, Alberta’s government is ensuring that communities are safer, legal matters are resolved more efficiently and all Albertans get the support they need.”
“This state-of-the-art facility will serve the people of Red Deer and surrounding communities for generations. Our team at Infrastructure is incredibly proud of the work done to plan, design and build this project. I want to thank everyone, at all levels, who helped make this project a reality.”
Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.
Quick facts
- The new Red Deer Justice Centre is 312,000 sq ft (29,000 m2). (The old courthouse is 98,780 sq ft (9,177 m2)).
- The approved project funding for the Red Deer Justice Centre is about $191 million.
From the Fraser Institute
By Tegan Hill
Amid the economic uncertainty fuelled by Trump’s trade war, its perhaps more important than ever to understand Alberta’s crucial role in the federation and its outsized contribution to programs such as the Canada Pension Plan (CPP).
From 1981 to 2022, Albertan’s net contribution to the CPP—meaning the amount Albertans paid into the program over and above what retirees in Alberta received in CPP payments—was $53.6 billion. In 2022 (the latest year of available data), Albertans’ net contribution to the CPP was $3.0 billion.
During that same period (1981 to 2022), British Columbia was the only other province where residents paid more into the CPP than retirees received in benefits—and Alberta’s contribution was six times greater than B.C.’s contribution. Put differently, residents in seven out of the nine provinces that participate in the CPP (Quebec has its own plan) receive more back in benefits than they contribute to the program.
Albertans pay an outsized contribution to federal and national programs, including the CPP because of the province’s relatively high rates of employment, higher average incomes and younger population (i.e. more workers pay into the CPP and less retirees take from it).
Put simply, Albertan workers have been helping fund the retirement of Canadians from coast to coast for decades, and without Alberta, the CPP would look much different.
How different?
If Alberta withdrew from the CPP and established its own standalone provincial pension plan, Alberta workers would receive the same retirement benefits but at a lower cost (i.e. lower CPP contribution rate deducted from our paycheques) than other Canadians, while the contribution rate—essentially the CPP tax rate—to fund the program would likely need to increase for the rest of the country to maintain the same benefits.
And given current demographic projections, immigration patterns and Alberta’s long history of leading the provinces in economic growth, Albertan workers will likely continue to pay more into the CPP than Albertan retirees get back from it.
Therefore, considering Alberta’s crucial role in national programs, the next federal government—whoever that may be—should undo and prevent policies that negatively impact the province and Albertans ability to contribute to Canada. Think of Bill C-69 (which imposes complex, uncertain and onerous review requirements on major energy projects), Bill C-48 (which bans large oil tankers off B.C.’s northern coast and limits access to Asian markets), an arbitrary cap on oil and gas emissions, numerous other “net-zero” targets, and so on.
Canada faces serious economic challenges, including a trade war with the United States. In times like this, it’s important to remember Alberta’s crucial role in the federation and the outsized contributions of Alberta workers to the wellbeing of Canadians across the country.
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