Alberta
Alberta’s emergency grid alert underscores vital role diverse energy mix plays in Canada
From the Canadian Energy Centre
By Cody Ciona
After a major cold spell affected the capacity of Alberta’s power grid to provide electricity, experts weigh in on the need for multiple sources of energy
The crucial need for Canada to have a flexible and diverse energy grid was given a practical demonstration this past weekend as frigid winter temperatures in Alberta prompted a grid emergency.
With temperatures in some places dropping to almost –50C with the wind chill, provincial officials issued an emergency alert asking Albertans to immediately reduce electricity usage, with the grid approaching maximum capacity during peak hours.
With wind and solar assets unable to contribute power and the unexpected shutdown of two natural gas plants, Albertans faced the possibility of rolling blackouts in dangerously cold conditions.
A day after the emergency, the Alberta Electric System Operator (AESO) thanked Albertans who responded quickly to reduce the demand load.
“This is an example of why we need to ensure that we have sufficient dispatchable, dependable generation available to us as a province to meet what is always our most challenging time, which is those cold, dark winter nights,” Michael Law, CEO of AESO, told the Calgary Herald.
The prospect of failure in the worst possible circumstances prompted energy analysts to highlight the critical need for a diverse and flexible energy grid.
“You could have had 50,000 megawatts, all the solar farms and wind farms in the world located in Alberta, and it still wouldn’t have come anywhere close to closing that gap,” University of Alberta economics professor Andrew Leach told CBC News.
Wind and solar can be major contributors to the grid when conditions allow, but when the sun goes down and the wind stops, base load power sources like natural gas reliably protect the system.
Leach said system operators need to plan for supply to manage adverse weather conditions to ensure the reliability of the grid.
“Whether it’s natural gas, nuclear, import capacity, battery storage, etc., geothermal, there’s nobody that’s arguing against that.”
With policymakers pushing for more electrification, University of Alberta industrial engineering professor Tim Weis said Alberta isn’t alone in the need for resilient and stable power supply.
“I think we need to wrestle with that and realize that we are moving into a world where there’s going to be more electrical demands on the system,” he told Global News.
“We are moving into a new world. We’re not the only ones facing some of these challenges. I think we’re a little bit behind responding in terms of dispatchable demand and allowing consumers the opportunity to automatically respond to some of these things.”
As the federal government aims to decarbonize Canada’s electricity generation by 2035 with sweeping regulations, flexibility for some jurisdictions is a key factor that needs to be addressed, said University of Calgary associate professor of economics Blake Shaffer.
“I do think that this shows us that no amount of renewables would push us to have solved that winter peak on Saturday,” he told CTV Calgary.
“And that means flexibility to have a gas fleet, for example, that is capable of being there for a few hours for a few days, maybe a few weeks a year. And we need the technical and economic setup to make that worth their while to be there,” Shaffer said.
“We saw this cold weather coming, everybody was preparing for it. The wind forecast was out a week ago we saw there was going to be no wind. Thankfully, the gas thermal fleet performed amazingly well.”
Natural gas generation was able to backstop the reduction in renewable power, said ARC Energy Research Institute executive director Jackie Forrest.
“The system delivered during the deep freeze this past weekend… so reliably that no one even noticed… I have long argued that gaseous fuels are needed in the mix for energy transition and the need to become cleaner; this is why,” said Forrest on X, formerly known as Twitter.
According to Forrest’s colleague, energy economist Peter Tertzakian, Alberta’s oil sands industry also plays a big role in power generation in the province with the prominence of natural gas-powered cogeneration facilities.
“The power that’s generated in this province during this cold spell, about 40 per cent of it comes from cogeneration. The bulk of which comes from the oil sands and all their big generators which have surplus electricity that they feed into the grid,” said Tertzakian on ARC Energy Institute’s latest podcast.
“I think it’s important to understand that any policies that affect oil sands also affect the electricity grid.”
Alberta
Fortis et Liber: Alberta’s Future in the Canadian Federation
From the C2C Journal
By Barry Cooper, professor of political science, University of Calgary
Canada’s western lands, wrote one prominent academic, became provinces “in the Roman sense” – acquired possessions that, once vanquished, were there to be exploited. Laurentian Canada regarded the hinterlands as existing primarily to serve the interests of the heartland. And the current holders of office in Ottawa often behave as if the Constitution’s federal-provincial distribution of powers is at best advisory, if it needs to be acknowledged at all. Reviewing this history, Barry Cooper places Alberta’s widely criticized Sovereignty Act in the context of the Prairie provinces’ long struggle for due constitutional recognition and the political equality of their citizens. Canada is a federation, notes Cooper. Provinces do have rights. Constitutions do mean something. And when they are no longer working, they can be changed.
Alberta
30 million contraband cigarettes valued at $25 million dollars seized in Alberta
New release from Alberta Gaming Liquor and Cannabis (AGLC)
Record setting contraband tobacco seizures result from AGLC investigations
Alberta Gaming Liquor and Cannabis (AGLC) recently concluded several investigations which netted two of the largest contraband tobacco seizures in Alberta history. The combined total of the contraband tobacco seized was 154,800 cartons of contraband cigarettes (30.7 million individual cigarettes). These seizures are a result of the work conducted by AGLC’s Tobacco Enforcement Unit with the assistance of provincial law enforcement agencies.
- In a January 2024 investigation, approximately 43,500 cartons (8.7 million individual cigarettes) were seized. This equates to $7 million in retail value with a provincial tax avoidance of $2.4 million. This included the seizure of 15,000 grams of contraband shisha.
- In April of 2024, 60 wrapped pallets were seized from a warehouse setting netting a total of 111,300 cartons of contraband cigarettes (22 million individual cigarettes) which equates to over $18 million in retail value with a provincial tax avoidance of $6.6 million.
- Criminal Charges are pending in both cases.
“These are significant contraband tobacco investigations involving individuals that are part of organized networks whose proceeds defraud Albertans millions of dollars in tax revenue. AGLC will continue to work with our partners to investigate and disrupt the individuals and organizations involved in these illegal activities as part our commitment to a strong contraband tobacco enforcement program in Alberta.”
- Gary Peck, Vice President, Regulatory Services, AGLC
“Contraband tobacco hurts law abiding businesses that follow the rules, and it costs Albertans millions each year from lost tax revenue. Our government is committed to keeping illegal tobacco off the streets and ensuring that the sale of tobacco products comply with the law.”
- Dale Nally, Minister of Service Alberta and Red Tape Reduction
Over the last nine months, AGLC’s Tobacco Enforcement unit has seized an estimated 35 million contraband cigarettes and 115,000 grams of contraband shisha from across the province. The total potential lost tax revenue is estimated to be more than $10.1 million.
Contraband tobacco:
- is any tobacco product that does not comply with federal and provincial laws related to importation, marking, manufacturing, stamping and payment of duties and taxes;
- comes from four main sources: illegal manufacturers, counterfeits, tax-exempt diversions and resale of stolen legal tobacco; and
- can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the “DUTY PAID CANADA DROIT ACQUITTÉ” on packages of cigarettes and cigars or pouches of tobacco.
In addition to lost revenues that may otherwise benefit Albertans, illegally manufactured products also pose public health and safety risks as they lack regulatory controls and inspections oversight.
Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522 or Crime Stoppers at 1-800-222-TIPS (8477).
Under a Memorandum of Understanding with Alberta Treasury Board and Finance, AGLC enforces the Tobacco Tax Act and conducts criminal investigations related to the possession, distribution and trafficking of contraband tobacco products. In 2022-23, provincial revenue from tobacco taxes was approximately $522 million.
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