EDMONTON — JASON WANG, senior electricity analyst at the Pembina Institute, made the following statement in response to the Government of Alberta tabling legislation related to the Restructured Energy Market:
“The tabling of legislation today is a step towards resolving the considerable uncertainty experienced by the electricity sector in Alberta in the last two years. This uncertainty has translated into a dampening of electricity investment in Alberta, at the exact time when other governments in Canada and around the world are rapidly scaling up their supply of low-cost clean electricity to support their economic growth.
“Today’s statements indicate the Government of Alberta and the Alberta Electric System Operator are engaging with feedback from industry and other stakeholders on the restructuring process to date. This engagement is welcome. As the process continues, we strongly encourage the government and the AESO to be guided by the overarching need to grow Alberta’s supply of electricity in a way that encourages the scale up of the lowest-cost, most readily deployable energy resources – wind, solar and battery storage. We know from examples around the world that, when paired with grid enhancements such as interprovincial transmission, renewables help to deliver a reliable, affordable energy-secure grid.
“On this note, we are concerned that the finalized REM is not currently intended to be put through the Alberta Utilities Commission’s approvals process before it is implemented. AUC review is the mechanism that ensures new electricity regulations and changes to the market are done in a way that protects the social, economic and environmental interests of Albertans.
“In 2025, delivering on affordability and reliability means ensuring proponents of lowest-cost renewables like wind, solar and battery storage are given fair access to participate in Alberta’s electricity market. We continue to encourage the Government of Alberta and the AESO to ensure the finalized REM serves this crucial purpose.”
Notes
Alberta’s Restructured Energy Market (REM): timeline and history
In 2022, the Alberta Electric System Operator (AESO) identified a need to review the province’s electricity market to ensure continued reliability, as more renewables were anticipated to be added to Alberta’s energy mix over the following years. This resulted in the Market Pathways initiative, launched August 1, 2023 to gather stakeholder input on adjustments that may be needed. This initiative was originally expected to run until mid-2024.
- On August 3, 2023, the Government of Alberta separately launched a seven-month moratorium on renewable energy development, citing concerns with the sector’s impact to land use, “pristine viewscapes,” as well as reliability of the grid.
- This moratorium paused approvals for up to 118 projects, representing as much as $33 billion in investments.
On October 12, 2023, the AESO announced that instead of completing the Market Pathways initiative, the Government of Alberta had directed it to provide a report by February 1, 2024 with recommendations on potential market adjustments to improve the reliability of the grid. To meet this expedited timeline, the AESO sought feedback through an in-person, invitation-only “Executives Working Group” (EWG), instead of public engagement.
- The renewables moratorium was lifted on February 28, 2024 but added new restrictions specifically related to renewable energy development. At the time, the Pembina Institute called these new restrictions “patently unfair”.
On March 11, 2024, after receiving the AESO’s recommendation report, the Government of Alberta directed the AESO to undertake a broader market redesign, referred to as the Restructured Energy Market (REM). The AESO announced the same day that the REM would be finalized in early 2025 and be submitted to the AUC for a public hearing to determine if the market changes would be in the public interest.
On December 10, 2024, the Government of Alberta announced the REM would be implemented after 2025 for an interim period of unspecified duration without requiring AUC approval. Instead, the interim period would allow for more changes, which the AUC would approve at some point for finalization.
On April 10, 2025, the Government of Alberta announced that instead of being finalized later this year, the REM will be finalized in early 2026.
Contact
Alex Burton
Communications Manager, Pembina Institute
825-994-2558
Background
Blog: Alberta is swimming against the tide on clean electricity
Report: Creating (Un)certainty for Renewable Projects
Report: I'll Have What They're Having
