Transitioning Alberta to a Greener Grid Alberta is a leader in responsible energy development by encouraging energy efficiency, reducing emissions, and developing more renewable energy. To help reach our target of 30 per cent renewable electricity generation by 2030, the province is phasing out coal-fired electricity generation and encouraging cleaner energy generation. Where Does Alberta’s Power Alberta’s Climate Leadership Plan The Climate Leadership Plan is a made - in - Alberta strategy to diversify ComeWhere does From Alberta’s ? power come from? our economy, create jobs and reduce greenhouse gas ( GHG ) emissions. 37.79% Coal-fired power plants • Climate Leadership Plan Goal : phase out emissions from coal - fired Cogeneration 29.69% electricity in Alberta by 2030 and replace at least 50 - 75 % of retired Combined Cycle 10.24% coal generation with renewable power, increasing the overall share of Wind 8.69% renewables to 30 %. Simple Cycle 5.51% • Prior to the Climate Leadership Plan, 12 of Alberta’s 18 coal - fired Hydroelectric 5.38% generating units were already slated to retire by 2030, however the remaining six units could have continued emitting harmful Other 2.70% pollution, reducing air quality and impacting human health – in one case until 2061. Source: AESO, March 2018 A Made - in - Alberta Alberta System Overview Alberta’s Changing Electricity Mix Other Other 26,000 KM Solar Plan : Phasing Out Wind Cogeneration of transmission lines Coal-fired Hydro Installed Coal, Phasing in generation MW 16,626 Simple Cycle Wind Renewables Peak demand 11,697MW 2017 2031 Single control area of • As a jurisdiction rich in fossil fuels, and KM2 Combined Cycle where the energy sector plays a large 660,000 Combined Cycle role in our economy, the implications Hydro 384 of climate policies – be they provincial, generating units Cogeneration Coal to Gas Simple Cycle national or international – are significant. ~201 market participants Source: AESO 2017 Long - Term Outlook • Alberta currently generates much of 3 interties its electricity from coal and has the to BC, SK and Cogeneration has grown in Alberta and is an important part of the Montana highest rate of coal - fired electricity of electricity mix. As of March 2018 any province. Source: AESO, March 2018 • Alberta’s response to climate change will Cogeneration is the simultaneous production of heat and electricity determine our province’s future. that allows for up to 92 % efficiency compared to about 57 % and 40 % efficiency for traditional combined cycle and single cycle plants, • Addressing climate change means decreasing the use of coal respectively. This increase in efficiency and reduction in fuel use lowers and increasing the use of natural gas and renewable energy. energy production costs and reduces greenhouse gas emissions. Source: National Energy Board 2016 Greenhouse Gas Emissions by Province and Territory ( Mt CO2e ) Alberta Electricity Emissions Reductions Scenarios to 2030 50 2015 Reported Emissions 2030 Emissions Using 2014 Government of Canada 40 Emissions Trends 2030 Emissions Using 2017 Policy and Economic Expectations (with CLP) 30 20 Million Tonnes CO2e Million Tonnes 10 0 Electricity Source: Environment and Climate Change Canada Source: Government of Alberta For more information visit www.alberta.ca/climate-coal-electricity.aspx ©2018 Government of Alberta | Published: September 2018 | ISBN Electronic: 978-1-4601-4115-1 Alberta’s Holistic Approach 3. Electricity Market Transition The Government of Alberta has taken an integrated approach in transitioning To help meet Alberta’s growing electricity needs, the province is moving the province’s electricity system to ensure reliability and affordability while to a capacity market system. attracting investment, creating jobs and protecting the environment. Electricity Market Framework : Alberta is transitioning from an energy and Resilie able nt market to a new framework that includes an energy market and a capacity eli ity Syst R ctric em Ele Im market, to ensure that consumers are protected from price volatility and p ro v o P e t d provide a reliable supply of electricity at stable, affordable prices. e t r E s f o n o s r v C r m i e r e a o l m n n b u c m a s e e Comprehensive Market Design : the Alberta Electric System Operator n n n o o t s Goals C a a l e engaged working groups and stakeholders in the development of the R ertans capacity market design. Alb E ge c ga per o n ult Ex ts n E ons S a o C N u n mi d a b d c D an tio -N Jo evelo ent n a b pm a t Cre l io ation C n o a 4. Consumer Protection n ll l a a io b t n o d la r s a i t i g o e n One priority is to protect consumers from volatile electricity prices. L d n a Initiatives y Electricity Price Protection Cap : ensures Albertans will pay no more c s i l e o Tools e t P t than 6.8 cents per kilowatt hour for electricity, until May 31, 2021. i Coal Phase Out l e m v m e L o r C o t i n n Price on Carbon e e S m 5. Renewable Electricity Program ( REP ) n r e v o G On a utility scale, the Renewable Electricity Program is encouraging the Electricity Market Transition development of large - scale renewable electricity generation and add 5,000 megawatts of renewable energy capacity by 2030. Consumer Protection Round 1 : set a record for the lowest renewable electricity pricing in Renewable Electricity Canada with a weighted average price of 3.7 cents per kilowatt hour and Program (REP) total development of 600 megawatts. Community Generation Worker Support Worker Community Support Rounds 2 and 3 : will provide a total of 700 megawatts of 1. Coal Phase Out renewable electricity with private - sector partnerships, including Indigenous communities. The government is working with companies to phase out coal-fired generation and encourage investment in the electricity system. 6. Community Generation Coal Phase - Out Agreements : in November 2016, the Government of Alberta reached agreements with three power On a smaller scale, the Alberta government is making it easier for companies to end coal - fired emissions by Dec. 31, 2030 . Agreement Albertans to generate their own electricity by exploring ways to enable elements included : more small - scale, community - owned generation from greener sources, • Transition Payments : fully funded by Alberta’s price on industrial such as wind or solar. carbon emissions for 6 coal units expected to operate beyond 2030 to secure a positive investment climate in the province. 7. Community Support • Power Company Obligations : commitments towards community investment, retaining a head office and minimum number of The government is committed to supporting impacted communities employees in Alberta, and continuing participation in Alberta’s during this transition. electricity system. Advisory Panel on Coal Communities : provided recommendations Coal - to - Gas Conversions : worked to provide provincial and federal to the Government of Alberta to support workers, communities and policy and regulatory clarity for coal plants to convert to natural gas and First Nations. continue to operate past 2029. Coal Community Transition Fund : supported 12 projects in 17 communities across the province. Total funding for the communities is 2. Price on Carbon about $5 million. Encouraging emissions reductions is a part of Alberta’s plan. 8. Worker Support Carbon Competitiveness Incentive : is Alberta’s approach to reduce emissions from large industrial emitters, attract investment in clean In addition to supporting communities, government is also assisting technology and create jobs that was developed in consultation with workers during the move from coal-fired generation. industry to : Coal Workforce Transition Program : financial assistance for • reduce greenhouse gas emissions from large industrial emitters re - employment, retirement, relocation and education as workers • ensure our industries thrive in a carbon competitive global market prepare to start new jobs or retire. • encourage investment in clean technology • Bridge to Re-Employment • create jobs and diversify our economy • Bridging to Retirement • Relocation Assistance • Tuition Voucher For more information visit www.alberta.ca/climate-coal-electricity.aspx ©2018 Government of Alberta | Published: September 2018 | ISBN Electronic: 978-1-4601-4115-1 .