Alberta Revamps How it Deals With Electricity in Approaching Era of Green Power
EDMONTON — Alberta is changing how it produces and pays for electricity.
Energy Minister Marg McCuaig−Boyd says the province is moving away from full deregulation to what is known as a capacity market.
Power producers will be paid to build up capacity — even if it isn’t all needed — to ensure there is always enough electricity in reserve.
The approach carries a risk that ratepayers will have to pay more for excess capacity, but it is expected to reduce market volatility.
McCuaig−Boyd says the move will ensure prices remain affordable as Alberta moves away from coal−fired electricity to natural gas and to renewables such as wind and solar.
Don MacIntyre, energy critic for the Opposition Wildrose party, says the changes are unnecessary, and he suggests all the risk will be transferred from power producers to consumers.
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The Canadian Press, 2016