Alberta Electrcity Initiatives

Name of policy Alberta Electrcity Initiatives
Jurisdiction Subnational region or state
Supranational region
Country Canada
Region North America

Subnational region or state
City or local
Policy objective
  • Mitigation
Type of policy instrument
  • Economic Instruments
    • Direct investment
      • Procurement rules
Sector name
  • Electricity and heat
    Policy description On November 22, 2015, Alberta announced its climate leadership plan. The plan states that:

    • Alberta will phase out all coal-fired electricity generation in the province by 2030. • Approximately 1/3 of this capacity will be replaced with natural gas, and 2/3 with renewables (up to 30% of Alberta’s total production). • In the interim, Alberta will impose a carbon tax of $20 a tonne in 2017, $30 a tonne in 2018, and increasing in real terms after that. For the electricity sector, this will apply to coal-fired emissions above what Alberta’s cleanest natural gas-fired plan would emit for the same amount of electricity production.

    In November, 2016, the Government of Alberta announced the first competition for new renewable energy development will begin in early 2017 with the successful bidders awarded at the end of 2017. It will be for up to 400 MW of renewable energy. The Government of Alberta also announced major changes to the electricity system. This includes: • An electricity price ceiling of 6.8 cents/KWh from June 2017 until June 2021 • Partial re-regulation of the Alberta energy market (details TBA) • Introduction of a capacity market (paired with the existing generation market), to encourage development of renewable generation. The market will be in place by 2021. • Plan to introduce Bill 34, the Electric Utilities Amendment Act, would allow the Balancing Pool to borrow money from the province to manage its funding obligations. This change, in conjunction with Ministerial Orders that allow the Balancing Pool to smooth price volatility over a longer period of time, would support electricity costs remaining low and stable.

    Policy type
    • Renewables1
    Policy stringency
    Implementation state Implemented
    Date of decision 2015
    Start date of implementation
    End date of implementation
    High impact No
    Impact indicator

    Source or references,&return=PG5hdiBpZD0iYnJlYWRjcnVtYiI-PGEgaHJlZj0iLyI-SG9tZTwvYT4gJnJhcXVvOyA8YSBocmVmPSIvcG9saWNpZXNhbmRtZWFzdXJlcy8iPlBvbGljaWVzIGFuZCBNZWFzdXJlczwvYT4gJnJhcXVvOyA8YSBocmVmPSIvcG9saWNpZXNhbmRtZWFzdXJlcy9yZW5ld2FibGVlbmVyZ3kvIj5SZW5ld2FibGUgRW5lcmd5PC9hPjwvbmF2Pg,,
    Supports policies
    Is supported by policies
    Comments (background and assessment)
    Status Final

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