New Alberta Electric System Operator analysis claims that incoming federal electricity regulations could land a $30 billion on Albertans.
The Government of Canada’s Clean Electricity Regulations (CER) came into effect on January 1, 2025.
The AESO concluded that the regulations "pose a significant risk to the reliability and affordability of Alberta’s electricity system in coming years. Despite the significant reliability risk and increased cost associated with the CER, the AESO’s assessment is that the regulation will fail to deliver meaningful reductions in carbon emissions in Alberta."
Minister of Environment and Protected Areas Rebecca Schulz and Minister of Affordability and Utilities Nathan Neudorf issued a statement Thursday on the analysis related to federal electricity regulations.
“For years, provinces, industry, experts and businesses urged the federal government to abandon their reckless and costly net-zero electricity regulations which became law last December," the ministers said in a joint statement.
"They will make our electricity grid 100 times less reliable and increase electricity prices by 35 per cent.
“Albertans deserve safe, affordable, reliable power where and when they need it. This is not the time for our country to continue down the path of costly and punitive policies from this federal government. It's time to reverse course.
“Alberta’s electricity emissions have already declined by 59 per cent without such policies and emissions will keep dropping without Ottawa’s interference. It’s clear the federal government’s new regulations aren’t actually about reducing emissions. Just like with the carbon tax, the real goal is punishing businesses, provinces and families for using natural gas for reliable, dispatchable power."
The AESO also projects that the CER will result in less than 1 megatonne of additional annual emissions reductions from Alberta’s electricity grid. The significant cost that the CER will impose on Alberta’s electricity system for minimal emissions reductions could mean the regulation is inefficient and ineffective.
"The threat to reliability resulting from the CER means that the regulation puts Alberta’s electricity grid at significant risk for little to no benefit," the AESO said in its report.
The AESO also said there are currently no economically and operationally proven low carbon emitting supply alternatives which can be added in the time frame and in the volumes which would be required to meet the regulation and maintain a reliable system.
"Without the addition of economically and operationally viable supply, power shortages could result by the mid-2030s. Although the regulations acknowledge the difficulties in integrating renewable energy sources such as solar and wind, they restrict the use of proven solutions that could help address these challenges," they said.
The ministers are calling on the federal government to reverse course.
“We refuse to put families at risk of rationing power during the coldest days of the year. The AESO’s assessment is further evidence that these regulations don’t work and need to be scrapped entirely," the ministers said in a statement.
“Someone must fix the mess that Ottawa has made before it’s too late. The next federal government needs to scrap these dangerous regulations and start listening to common sense.
“Until then, we will keep standing up for Albertans and continue preparing to oppose these unconstitutional rules in court – where we fully expect to win, again.”
