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Strategic Reserves

Key Dates

Sept. 27, 2024 | Written Feedback Due

Sept. 6, 2024 | Sept. 5 Virtual Information Session | Recording

Sept. 5, 2024 | Virtual Information Session (following the REM Design Information Session)

Aug. 28, 2024 | Presentation posted

Sept. 16, 2024 | Stakeholder Update

During the Stakeholder Engagement Session on September 5, 2024, the AESO committed to issuing a Request for Information (RFI) to seek potential solutions from industry for Strategic Reserves as a means to mitigate supply adequacy risk. Given this decision, the Stakeholder Feedback Questions have been updated to remove questions 4, 5 and 6. Instead, stakeholders are invited to provide information on potential solutions for Strategic Reserves through the RFI which is targeted to be issued in October.

Purpose

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.

Key Dates

Sept. 27, 2024 | Written Feedback Due

Sept. 6, 2024 | Sept. 5 Virtual Information Session | Recording

Sept. 5, 2024 | Virtual Information Session (following the REM Design Information Session)

Aug. 28, 2024 | Presentation posted

Sept. 16, 2024 | Stakeholder Update

During the Stakeholder Engagement Session on September 5, 2024, the AESO committed to issuing a Request for Information (RFI) to seek potential solutions from industry for Strategic Reserves as a means to mitigate supply adequacy risk. Given this decision, the Stakeholder Feedback Questions have been updated to remove questions 4, 5 and 6. Instead, stakeholders are invited to provide information on potential solutions for Strategic Reserves through the RFI which is targeted to be issued in October.

Purpose

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.

  • Written Feedback | Sept. 6 - 27, 2024

    Sept. 16, 2024 | Stakeholder Update

    During the Stakeholder Engagement Session on September 5, 2024, the AESO committed to issuing a Request for Information (RFI) to seek potential solutions from industry for Strategic Reserves as a means to mitigate supply adequacy risk. Given this decision, the Stakeholder Feedback Questions have been updated to remove questions 4, 5 and 6.  Instead, stakeholders are invited to provide information on potential solutions for Strategic Reserves through the RFI which is targeted to be issued in October.

    Purpose

    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

    1. To submit your feedback, you will need to be registered and signed in on the AESO Engage platform.
    2. Please click on the "Complete Stakeholder Feedback" box below to provide your specific comments.
    3. Please submit one completed Stakeholder Feedback per organization.
    4. Stakeholder Feedback results will be posted on AESO Engage, in their original state.
    5. Responses are due on or before 4 p.m. on Friday September 27, 2024

    Materials

    You can refer to the presentation from the Sept. 5, 2024 Information Session if required. 

    Stakeholder Feedback Questions

    1. What segment of the industry do you represent? (select all that apply)
    2. 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?  
    3. Please provide rationale for your response to question 2 (above). 
    4. What other products or solutions should the AESO consider to address supply adequacy and ensure minimal market impact? Please be as specific as possible.
    5. Do you see value in the AESO conducting a Request for Information (RFI) process to further explore the alternatives?
    6.  Please provide rationale for your response for question 5 (above).
    7. 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. 
    8. 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. 
    9. Is there anything else you would like to share with the AESO on the concept of Strategic Reserves? 
    10. If you would like to add a formatted version of your responses, please do so here.
    Complete Stakeholder Feedback
Page last updated: 17 Sep 2024, 03:29 PM