Dale Nally, Associate Minister of Natural Gas and Electricity. (Government of Alberta)

By rdnewsNOW Staff

Bill 22

Province modernizing the electricity grid to improve affordability

Apr 27, 2022 | 4:11 PM

The province says proposed changes to Alberta’s electricity system would modernize and help keep electricity safe, reliable and affordable for the long term.

Bill 22, the Electricity Statutes (Modernizing Alberta’s Electricity Grid) Amendment Act, 2022, builds on legislation first introduced in the fall 2021 session and integrates new technologies and innovations into Alberta’s electricity system, say provincial officials.

The proposed amendments would enable energy storage, allow more self-supply with export and help the distribution system plan for electric vehicles, renewable power sources, emerging technologies and other distributed energy resources. It would also begin winding down the Balancing Pool by redistributing its remaining responsibilities and laying the groundwork for its future dissolution.

Together, these changes would encourage investor confidence in Alberta’s electricity grid to increase long-term competition and supply, which leads to more stable and affordable prices for Albertans, say government officials. This would also be expected to make low-carbon alternatives easier to incorporate into the electricity grid without costly subsidies from taxpayers.

“We’re making the long-term changes needed to create a stronger electricity system that keeps energy affordable and reliable for Albertans for years to come,” said Dale Nally, Associate Minister of Natural Gas and Electricity, on Wednesday. “This bill includes critical measures aimed at further increasing competition and stability so that our electricity system is as cost-effective and efficient as possible. Ultimately we are creating a stronger, more reliable and more affordable system for the years ahead.”

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“Energy storage is a critical component of modernizing Alberta’s electricity grid and will reduce emissions, save ratepayers money, create jobs and draw significant new investment to Alberta. With Bill 22, the Government of Alberta has enabled new investment and jobs in energy storage,” added Matt Braaten, CEO, Enfinite Inc, Alberta’s largest energy storage operator.

The government says the Electricity Statutes (Modernizing Alberta’s Electricity Grid) Amendment Act, 2022 was developed following months of engagement with investors, consumer groups and electricity producers and utilities.

The province says Bill 22 would encourage adoption and investment in emerging energy systems and technologies, bringing long-term cost savings for consumers and industry.

Energy storage would be integrated into Alberta’s interconnected electricity system in both the competitive electricity market and the transmission and distribution system. This benefits Albertans by creating new opportunities to store energy at times when prices are low for use later and provides non-wires alternatives for further cost savings, officials point out.

Self-supply with export is described as the ability of companies to generate power on site for their own use and to sell excess power back to the grid for use by Albertans.

The Electricity Statutes (Modernizing Alberta’s Electricity Grid) Amendment Act, 2022 would enable unlimited self-supply with export while making sure transmission system costs remain balanced among all system participants. Allowing industry to contribute more power supply is another way the government is fostering more competition and long-term affordability for ratepayers, add government officials.

Further proposed legislative amendments are said to build on the Alberta Utilities Commission Distribution System Inquiry on modernizing Alberta’s electric distribution system to ensure the cost-effective integration of distributed energy resources in the system. The amendments add a requirement for distribution owners to prepare long-term plans as per future regulations, which will describe the outcomes and timing of the plans.

Officials say legislation proposed will also give the Minister of Energy regulation-making authority to allow the government to provide further guidance around a distribution planning framework.

Established to support Alberta’s fair, efficient and openly competitive electricity market, the government says the Balancing Pool’s primary role of managing fixed-price deals with electricity producers ended in 2020

The Electricity Statutes (Modernizing Alberta’s Electricity Grid) Amendment Act, 2022 is anticipated to re-assign many of the current responsibilities of the Balancing Pool. The Balancing Pool would then wind down once it has completed its remaining core statutory responsibilities.

Alberta government quick facts

• The Electricity Statutes (Modernizing Alberta’s Electricity Grid) Amendment Act, 2022 would enable unlimited self-supply with export, which can assist industrial and commercial operators in managing electricity costs, promote the reliability of the integrated electricity system and reduce emissions.
• Energy storage systems are increasingly viable and could take on a wide range of roles within the electricity system to support lower carbon generation, help manage system costs and improve the overall reliability of the grid.
• The proposed energy storage amendments would enable competitive procurement of energy storage across the system by introducing new definitions for both an energy storage resource and energy storage facility, setting the stage for their approvals.
• In addition, the proposed legislation would allow distribution and transmission companies to use this technology to provide utility service under certain circumstances, which may help keep costs down for ratepayers over the long term.

“Over and over again, the UCP has failed to help Albertans with rising utility costs,” said NDP Energy Critic Kathleen Ganley. “They ignored the problem of skyrocketing bills for months. In fact, they said no help would be coming and that the market was working, only to reverse course.

“They have dithered, reversed themselves, blamed others, and wasted time and now they’re saying it will take several more months before any support is provided to Albertans.

“Legislation similar to Bill 22 was introduced last fall, only to be abandoned with no explanation and died on the order paper,” continued Ganley.

“Now they’ve reintroduced it almost six months later. As a result, we’ve lost almost six months in taking steps to modernize our grid and add energy storage that could reduce costs in the long-term.

“We support adding more energy storage to the grid. We have been consulting on ways we can add more storage and on ways we can achieve a net-zero grid by 2035 while creating 60,000 jobs, through our Alberta’s future project.

“But the UCP keeps failing Albertans. They’ve failed to get direct support out the door that could help Alberta families with skyrocketing utility bills. Now they’ve delayed making changes to the grid that could actually provide long-term relief for Albertans with utility costs.

“Simply put, the UCP can’t be trusted to manage our electricity grid and protect Albertans’ pocketbooks.”