September 24, 2024

Alberta’s Electricity Future Challenge Statements

Maureen Kolla, Keren Perla, Terri-Lynn Duque, Sarah Brooks and Ashley Meller

Alberta’s Electricity Future (AEF) is based on the view that players across the electricity system are responding to new factors that fall outside (and sometimes run contrary to) the parameters of what Alberta’s electricity system was originally designed to do. 

These factors include changes and challenges to the electricity generation mix, market behaviours, system reliability and customer expectations. Taken together, changes in these areas are threatening the affordability of electricity, the future competitiveness of Alberta’s industry in global markets, and the desirability of Alberta as a destination for business in an increasingly net-zero focused world.

Phase 2 of Alberta’s Electricity Future resulted in the creation of a series of 10 challenge statements, which served to articulate initiative leaders’ and contributors’ strongest understanding of the key systemic barriers standing in the way of large-scale transformation of Alberta’s electricity system.

The statements point to areas where actors working to accelerate change in the system might take collective action towards realizing the vision co-created by initiative participants and unlock substantial progress toward a net-zero electricity system in Alberta.

Challenge Statement #1: Incentivizing the optimization of existing electricity assets and infrastructure

Challenge Statement #2: A wholesale market structure that fully recognizes the benefits of diverse supply and demand resources

Challenge Statement #3: Indigenous engagement / Indigenous-led projects are key to electricity expansion

Challenge Statement #4: Frameworks and governance structures that reflect evolving climate realities

Challenge Statement #5: Minimizing stranded assets as the electricity system evolves

Challenge Statement #6: Tailored electricity programs and services to reduce energy poverty

Challenge Statement #7: Regulatory processes accommodate capacity differences across consumers

Challenge Statement #8: Empowering consumers to exercise choice and meet their energy needs simply and economically

Challenge Statement #9: Evolving traditional business and delivery models to accommodate DERs

Challenge Statement #10: Regulatory processes that can adapt to change as the energy transition evolves