The AESO is considering strategic reserves as a temporary out-of-market mechanism to support supply adequacy in the mid-term while the market transitions to the Restructured Energy Market (REM). We are focused on the impact of coal-to-gas retirement decisions during a period of significant change in the market which will impact investment decisions for future dispatchable supply. The AESO will share the design and implementation principles of strategic reserves, and next steps via stakeholder engagement and written feedback opportunities, beginning in September 2024.
Background
There are eight coal-to-gas generation units totaling 3,078 MW currently in service in Alberta that we expect could retire due to economic uncertainties. We need options to maintain supply adequacy currently provided by these units. We are looking at maintaining adequate capacity to deliver strategic reserves as an insurance policy to provide emergency supply while other longer-term alternatives are explored.
The AESO is considering strategic reserves as a temporary out-of-market mechanism to support supply adequacy in the mid-term while the market transitions to the Restructured Energy Market (REM). We are focused on the impact of coal-to-gas retirement decisions during a period of significant change in the market which will impact investment decisions for future dispatchable supply. The AESO will share the design and implementation principles of strategic reserves, and next steps via stakeholder engagement and written feedback opportunities, beginning in September 2024.
Background
There are eight coal-to-gas generation units totaling 3,078 MW currently in service in Alberta that we expect could retire due to economic uncertainties. We need options to maintain supply adequacy currently provided by these units. We are looking at maintaining adequate capacity to deliver strategic reserves as an insurance policy to provide emergency supply while other longer-term alternatives are explored.
We value stakeholder input and invite all interested stakeholders to provide their feedback on Strategic Reserves via the questions set out below. The information and feedback shared will assist the AESO in assessing Strategic Reserves. The AESO would like to thank stakeholder in advance for their ideas, insights, and perspectives. Complete the survey by Sept. 27, 2024, at 4 p.m. MDT.
Instructions
To submit your feedback, you will need to be registered and signed in on the AESO Engage platform.
Please click on the "Complete Stakeholder Feedback" box below to provide your specific comments.
Please submit one completed Stakeholder Feedback per organization.
Stakeholder Feedback results will be posted on AESO Engage, in their original state.
Responses are due on or before 4 p.m. on Friday September 27, 2024
What segment of the industry do you represent? (select all that apply)
Do you agree with the AESO's introduction of Strategic Reserves should we need to address the risk associated with supply adequacy during periods of market uncertainty?
Please provide rationale for your response to question 2 (above).
What other products or solutions should the AESO consider to address supply adequacy and ensure minimal market impact? Please be as specific as possible.
Do you see value in the AESO conducting a Request for Information (RFI) process to further explore the alternatives?
Please provide rationale for your response for question 5 (above).
If the AESO proceeds with Strategic Reserves, what recommendations do you have for designing and deploying them to ensure minimal market impact? Please provide rationale for your response.
If the AESO proceeds with Strategic Reserves from coal-to-gas assets, how should those assets be addressed at the end of the contracts? Please consider in your response whether they should be allowed to re-enter the market and if so, what special considerations would need to be made.
Is there anything else you would like to share with the AESO on the concept of Strategic Reserves?
If you would like to add a formatted version of your responses, please do so here.
Provide an overview of the concept of strategic reserves, as a temporary out-of-market mechanism to support supply adequacy and reliability.
Written Feedback | Sept. 6 - 27, 2024
Strategic Reserves is currently at this stage
Opportunity for stakeholders to share feedback on short and long-term options
AESO Review of Stakeholder Feedback and Determine Next Steps | October 2024
this is an upcoming stage for Strategic Reserves
Stakeholder feedback will be considered, posted, next steps clarified and communicated
Session Recordings
Click here to play video
REM Information Session - Sept. 5, 2024|Strategic Reserves Segment [posted: Sept. 6, 2024]
This segment was part of the REM Information Session on Sept. 5, 2024
This segment was part of the REM Information Session on Sept. 5, 2024
