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Alberta

Alberta’s emergency grid alert underscores vital role diverse energy mix plays in Canada

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6 minute read

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.”

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Agriculture

Lacombe meat processor scores $1.2 million dollar provincial tax credit to help expansion

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Alberta’s government continues to attract investment and grow the provincial economy.

The province’s inviting and tax-friendly business environment, and abundant agricultural resources, make it one of North America’s best places to do business. In addition, the Agri-Processing Investment Tax Credit helps attract investment that will further diversify Alberta’s agriculture industry.

Beretta Farms is the most recent company to qualify for the tax credit by expanding its existing facility with the potential to significantly increase production capacity. It invested more than $10.9 million in the project that is expected to increase the plant’s processing capacity from 29,583 to 44,688 head of cattle per year. Eleven new employees were hired after the expansion and the company plans to hire ten more. Through the Agri-Processing Investment Tax Credit, Alberta’s government has issued Beretta Farms a tax credit of $1,228,735.

“The Agri-Processing Investment Tax Credit is building on Alberta’s existing competitive advantages for agri-food companies and the primary producers that supply them. This facility expansion will allow Beretta Farms to increase production capacity, which means more Alberta beef across the country, and around the world.”

RJ Sigurdson, Minister of Agriculture and Irrigation

“This expansion by Beretta Farms is great news for Lacombe and central Alberta. It not only supports local job creation and economic growth but also strengthens Alberta’s global reputation for producing high-quality meat products. I’m proud to see our government supporting agricultural innovation and investment right here in our community.”

Jennifer Johnson, MLA for Lacombe-Ponoka

The tax credit provides a 12 per cent non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta. The program is open to any food manufacturers and bio processors that add value to commodities like grains or meat or turn agricultural byproducts into new consumer or industrial goods.

Beretta Farms’ facility in Lacombe is a federally registered, European Union-approved harvesting and meat processing facility specializing in the slaughter, processing, packaging and distribution of Canadian and United States cattle and bison meat products to 87 countries worldwide.

“Our recent plant expansion project at our facility in Lacombe has allowed us to increase our processing capacities and add more job opportunities in the central Alberta area. With the support and recognition from the Government of Alberta’s tax credit program, we feel we are in a better position to continue our success and have the confidence to grow our meat brands into the future.”

Thomas Beretta, plant manager, Beretta Farms

Alberta’s agri-processing sector is the second-largest manufacturing industry in the province and meat processing plays an important role in the sector, generating millions in annual economic impact and creating thousands of jobs. Alberta continues to be an attractive place for agricultural investment due to its agricultural resources, one of the lowest tax rates in North America, a business-friendly environment and a robust transportation network to connect with international markets.

Quick facts

  • Since 2023, there are 16 applicants to the Agri-Processing Investment Tax Credit for projects worth about $1.6 billion total in new investment in Alberta’s agri-processing sector.
  • To date, 13 projects have received conditional approval under the program.
    • Each applicant must submit progress reports, then apply for a tax credit certificate when the project is complete.
  • Beretta Farms has expanded the Lacombe facility by 10,000 square feet to include new warehousing, cooler space and an office building.
    • This project has the potential to increase production capacity by 50 per cent, thereby facilitating entry into more European markets.

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Alberta

Alberta Next: Alberta Pension Plan

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From Premier Danielle Smith and Alberta.ca/Next

Let’s talk about an Alberta Pension Plan for a minute.

With our young Alberta workforce paying billions more into the CPP each year than our seniors get back in benefits, it’s time to ask whether we stay with the status quo or create our own Alberta Pension Plan that would guarantee as good or better benefits for seniors and lower premiums for workers.

I want to hear your perspective on this idea and please check out the video. Get the facts. Join the conversation.

Visit Alberta.ca/next

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