Category Archives: Energy

Energy Storage, Definition and Ownership Between Alberta and Texas

By: Ahmed Selim

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Policy Commented On: Alberta Electric System Operator’s (AESO) Energy Storage

Alberta has the least regulated electricity market in Canada (see generally Natural Resources Canada, “About Electricity”). The Alberta market is an energy-only market where electricity generators are paid solely based on the amount of electricity they produce. In 2020, wind and solar power accounted for 11% and 1% of the installed electricity generation capacity in Alberta, respectively (AESO 2020 Annual Market Statistics at 13).

At the same time, the Alberta Utilities Commission (AUC) acknowledges how energy storage could potentially disrupt the wholesale energy market (Distribution System Inquiry: Final Report, at para 225). Gird-scale energy storage may be able to mitigate the intermittency of wind and solar power. However, as Eeles et al note, it is uncertain where energy storage stands in Alberta’s utilities legal framework (David Eeles et al, “Energy Storage: The Regulatory Landscape in Alberta” (2021) [unpublished, archived at Norton Rose Fulbright Canada LLP]). This blog post summarizes the four main types of energy storage and discuss uncertainties around the definition and ownership rules of energy storage in Alberta and Texas. Both the Alberta and Texas electricity markets are energy-only markets as opposed to capacity markets. Electricity producers are solely paid base on how much electricity they generate. In capacity market jurisdictions, electricity producers have a second revenue stream based on how much of their production capacity is made available to the grid, regardless of whether the whole capacity is utilized or not. Continue reading →

Alberta’s Plan for Climate Resilience is Government Propaganda

By: Drew Yewchuk

PDF Version: Alberta’s Plan for Climate Resilience is Government Propaganda

Matter Commented On: The Canadian Energy Centre’s Request for Proposal for a Creative and Production Agency

After the 2019 Alberta election, the new government replaced the previous Carbon Competitiveness Incentive Regulation, Alta Reg 255/2017 with the new Technology Innovation and Emissions Reduction Regulation, Alta Reg 133/2019 (TIER).  Both were regulations under the Emissions Management and Climate Resilience Act, SA 2003, c E-7.8. For the story of the development of TIER, refer to this post from Nigel Bankes.

TIER changed the name of the Climate Change and Emissions Management Fund to the Technology Innovation and Emissions Reduction Fund (TIER Fund). The fund accumulates money from emitters who fail to meet their emission targets. The fund can only be used for the purposes in section 10 (3)-(4.2) of the Act: Continue reading →

Off-Grid Energy for Bitcoin Mines in Alberta: A Problematic Legal Regime

By: Nigel Bankes

PDF Version: Off-Grid Energy for Bitcoin Mines in Alberta: A Problematic Legal Regime

Decision Commented On: Alberta Utilities Commission (AUC), Decision 26379-D02-2021, Allegations against Link Global Technologies Inc., Phase 1, August 19, 2021

I don’t know much about Bitcoin operations, but I do know that they need a lot of power to run large computers, and it therefore makes sense for them to locate near cheap sources of power. Over the last several months, there have been a number of stories about Bitcoin operators checking out Alberta locations. For example, Collin Gallant published a nice piece in the Medicine Hat News in April 2021. But this last week (August 25, 2021) the CBC ran with a more detailed story about one of the Bitcoin operators mentioned in Gallant’s piece (Link Global Technologies Inc.) that had co-located close to a shut in gas well to take advantage of cheap fuel to power their gas turbine generators. Continue reading →

Conflating Dissent with Disloyalty, Allan Inquiry sets a Dangerous Precedent

By: Martin Z. Olszynski

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Matter Commented On: The Public Inquiry into Anti-Alberta Energy Campaigns

It’s late fall 2022. A popular mayor of a southern Alberta town wakes up to a peculiar email: the Second Public Inquiry into Anti-Alberta Energy Campaigns has reviewed several news reports from 2020 and 2021, as well as his social media account, and has determined that he engaged in an “anti-Alberta energy campaign.”

Just a bit down the highway, a popular Alberta country singer finds a similar email. They’ve each been given two weeks to respond. Confused, each writes back to the Inquiry to insist that they’re absolutely not anti-Alberta: they’re proud Albertans who care deeply about its lands and waters, especially the eastern slopes of the Rockies and the vital headwaters found there. Continue reading →

The AER’s Mandatory Closure Spend Targets are Deficient

By: Drew Yewchuk

PDF Version: The AER’s Mandatory Closure Targets are Deficient 

Legislation Commented On: AER Bulletin 2021-23 ‘Mandatory Closure Spend Targets’

This is a follow up post to my June 24, 2021 post on the changes the Alberta Energy Regulator (AER) is making to the Liability Management Framework and specifically Draft Directive XXX: Licensee Life-Cycle Management (Draft Directive) meant to replace the current Directive 006 once finalized. Readers are encouraged to check that post for background context. Continue reading →