Alberta's Wind Farms Displace Emissions but Depress Offset Values as Grid Decarbonizes
The article discusses how the increase in wind energy in Alberta, Canada is displacing greenhouse gas emissions and affecting offset values. By analyzing 10 years of data, researchers found that as wind power grows, it lowers its own price but increases its offset value. This means that wind energy is displacing more emissions than previously thought. However, as natural gas becomes more dominant, the offset value decreases in the long term. The study shows that significant carbon pricing in Alberta's electricity market has led to more emissions being displaced by renewable energy, but this value may decrease as the grid becomes cleaner over time.