Despite cold weather challenges, Alberta’s energy system works

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Rachel Notley’s resignation announcement final week prompted a lot dialogue about her legacy, and it was an attention-grabbing coincidence to see a renewed debate round one thing that was very almost part of that legacy.

In a accident, the identical celebration that foiled Notley’s plans to overtake Alberta’s electrical energy market could now be the one to make it a part of its legacy. In that case, it might be the UCP and never the outgoing NDP chief that must reside with remorse.

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Final week’s heated electrical energy dialog got here on the heels of 4 days of grid alerts and the province coming precariously near the grim situation of rolling blackouts within the midst of a punishing polar vortex.

One query that stored arising was whether or not Alberta would have been in a greater place to take care of the disaster had we switched from our present “energy-only” system to what’s often known as a capability market. The NDP had deliberate to usher in that change, solely to see the UCP resolve in any other case in 2019.

Final fall, the premier appeared to trace that switching to a capability market might be within the playing cards. And final week, there have been some blended messages from the utilities minister on the deserves of such a change. When requested if a capability system may have saved the day throughout the chilly snap, Nathan Neudorf mentioned: “It’s attainable.”

However Neudorf then went on to focus on the dangers of a capability system, calling it “very costly insurance coverage.” The minister warned that we might be saddled with a whole lot of hundreds of thousands of {dollars} in contracts for capability that’s “sitting there in case of emergency.”

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It’s in no way clear that Alberta’s present system failed us 10 days in the past or that it’s been any type of a failure in any respect.

It must be famous that earlier than 2021, Alberta loved a quite lengthy stretch of comparatively low electrical energy costs — together with and particularly throughout the NDP’s time in workplace.

As for the current disaster, let’s not neglect that we had two pure gasoline crops down. And even amid that capability crunch, our system nonetheless has the flexibility to activate a dime. Simply hours after Alberta needed to import energy to maintain the lights on, we discovered ourselves with sufficient of a surplus that we had been exporting energy to different jurisdictions.

Moreover, Alberta is simply weeks away from a significant new pure gasoline plant coming on-line. The Cascade plant could have the capability to offer about eight per cent of the province’s common demand. Think about if that challenge had reached the end line a few months early. That is additionally a brand new participant available in the market, so it’s an added bonus of extra competitors to go together with the extra provide.

That’s not the one new pure gasoline capability being added this yr — Suncor is constructing a brand new pure gasoline generator and Capital Energy is changing the previous Genesee coal plant right into a pure gasoline facility. All of it will depart Alberta in a a lot stronger place capacity-wise, and can in flip drive down electrical energy costs.

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There’s one other necessary level to contemplate in all of this, particularly for these inclined towards remorse on Notley’s behalf for not having succeeded in upending the established order. Alberta’s market system has been a boon for funding in renewable vitality on this province — far eclipsing what we’d have seen beneath a capability system.

If the UCP is seeking to handle among the challenges within the present system, lifting the moratorium on approving new renewable vitality initiatives could be an amazing place to start out.

There are possible different tweaks that might be made to enhance the system extra typically, however let’s not throw the newborn out with the tub water.

Alberta ought to follow its market-based system.

Afternoons with Rob Breakenridge airs weekdays from 12:30 to three p.m. on QR Calgary

rob.breakenridge@corusent.com

X: @RobBreakenridge

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