2020 marked the end of the first 20 years of retail competition through Alberta’s energy-only Power Pool that is administered by the Alberta Electric System Operator (“AESO”). The electricity market trades energy at the hourly settlement Pool Price, which is derived from the real-time 60-minute System Marginal Prices (“SMP”). Alberta’s electricity market prices can range from the floor of $0/MWh to the administrative cap $1,000/MWh. As the chart illustrates, the bulk of historical annual pricing has averaged $57/MWh over the last 20 years, ranging from as low as $18/MWh to a high of $90/MWh. These historical ebbs in price have been driven by pure competitive market supply demand fundamentals and the underlying cost structure of supply resources. The make-up of the annual price from the 10 bands segmented, shows that Alberta’s large base load generation prices its capacity less than $100/MWh 58% of the time, whereas the scarcity pricing at prices above $500/MWh only amount to 19% of the time. Finally, on-peak pool prices averaged $70/MWh over the 20 year period with corresponding off-peak prices averaging only $31/MWh and super-peak prices reach an average of $77/MWh. Alberta’s Power Pool has gone through a lot in the past 20 years, but has been very resilient in serving the needs of power producers and consumers alike!
Generation Economic Portfolio Analysis EDCA has been retained by many companies in respect for completing generation energy production... Read More
Historically, Alberta is one of the highest Greenhouse Gas (GHG) emitting provinces in Canada. In 2019, Alberta released approximately 276 mt of... Read More