Transition to Capacity Market in Alberta Sparks Concerns and Challenges
Alberta is changing its electricity market to ensure there is enough power for everyone and to attract investors. The new capacity market will pay companies for both providing electricity now and having the ability to do so in the future. This change is needed because renewable energy is becoming more common, and traditional power sources like natural gas may not invest enough in new generation. However, switching to a capacity market is complicated and regulators must carefully set rules, like the capacity demand curve, to handle uncertainties in demand and global oil prices. Investors are cautious about these changes.