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Alberta Electricity Price Surge reflects soaring wholesale rates, natural gas spikes, carbon tax pressures, and grid decarbonization challenges amid cold-weather demand, constrained supply, and Europe-style energy crisis impacts across the province.

Key Points

An exceptional jump in Alberta's power costs driven by gas price spikes, high demand, policy costs, and tight supply.

✅ Wholesale prices averaged $123/MWh in December

✅ Gas costs surged; supply constraints and outages

✅ Carbon tax and decarbonization policies raised costs

Albertans just endured the highest electricity prices in 21 years. Wholesale prices averaged $123 per megawatt-hour in December, more than triple the level from the previous year and highest for December since 2000.

The situation in Alberta mirrors the energy crisis striking Europe where electricity prices are also surging, largely due to a shocking five-fold increase in natural gas prices in 2021 compared to the prior year.

The situation should give pause to Albertans when they consider aggressive plans to “decarbonize” the electric grid, including proposals for a fully renewable grid by 2030 from some policymakers.

The explanation for skyrocketing energy prices is simple: increased demand (because of Calgary's frigid February demand and a slowly-reviving post-pandemic economy) coupled with constrained supply.

In the nitty gritty details, there are always particular transitory causes, such as disputes with Russian gas companies (in the case of Europe) or plant outages (in the case of Alberta).

But beyond these fleeting factors, there are more permanent systemic constraints on natural gas (and even more so, coal-fired) power plants.

I refer of course to the climate change policies of the Trudeau government at the federal level and some of the more aggressive provincial governments, which have notable implications for electricity grids across Canada.

The most obvious example is the carbon tax, the repeal of which Premier Jason Kenney made a staple of his government.

Putting aside the constitutional issues (on which the Supreme Court ruled in March of last year that the federal government could impose a carbon tax on Alberta), the obvious economic impact will be to make carbon-sourced electricity more expensive.

This isn’t a bug or undesired side-effect, it’s the explicit purpose of a carbon tax.

Right now, the federal carbon tax is $40 per tonne, is scheduled to increase to $50 in April, and will ultimately max out at a whopping $170 per tonne in 2030.

Again, the conscious rationale of the tax, aligned with goals for cleaning up Canada's electricity, is to make coal, oil and natural gas more expensive to induce consumers and businesses to use alternative energy sources.

As Albertans experience sticker shock this winter, they should ask themselves — do we want the government intentionally making electricity and heating oil more expensive?

Of course, the proponent of a carbon tax (and other measures designed to shift Canadians away from carbon-based fuels) would respond that it’s a necessary measure in the fight against climate change, and that Canada will need more electricity to hit net-zero according to the IEA.

Yet the reality is that Canada is a bit player on the world stage when it comes to carbon dioxide, responsible for only 1.5% of global emissions (as of 2018).

As reported at this “climate tracker” website, if we look at the actual policies put in place by governments around the world, they’re collectively on track for the Earth to warm 2.7 degrees Celsius by 2100, far above the official target codified in the Paris Agreement.

Canadians can’t do much to alter the global temperature, but federal and provincial governments can make energy more expensive if policymakers so choose, and large-scale electrification could be costly—the Canadian Gas Association warns of $1.4 trillion— if pursued rapidly.

As renewable technologies become more reliable and affordable, business and consumers will naturally adopt them; it didn’t take a “manure tax” to force people to use cars rather than horses.

As official policy continues to make electricity more expensive, Albertans should ask if this approach is really worth it, or whether options like bridging the Alberta-B.C. electricity gap could better balance costs.

Robert P. Murphy is a senior fellow at the Fraser Institute.

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BC Hydro Rate Freeze delivers immediate relief on electricity rates in British Columbia, reversing a planned 3% hike, as BCUC oversight, a utility review, and Site C project debates shape provincial energy policy.

Key Points

A one-year provincial policy halting BC Hydro electricity rate hikes while a utility review finds cost savings.

✅ Freeze replaces planned 3% hike approved by BCUC.

✅ Government to conduct comprehensive BC Hydro review.

✅ Critics warn $150M revenue loss impacts capital projects.

British Columbia's NDP government has announced it will freeze BC Hydro rates effective immediately, fulfilling a key election promise.

Energy, Mines and Petroleum Resources Minister Michelle Mungall says hydro rates have gone up by more than 24 per cent in the last four years and by more than 70 per cent since 2001, reflecting proposals such as a 3.75% increase over two years announced previously.

"After years of escalating electricity costs, British Columbians deserve a break on their bills," Mungall said in a news release.

BC Hydro had been approved by the B.C. Utilities Commission to increase the rate by three per cent next year, but Mungall said it will pull back its request in order to comply with the freeze.

In the meantime, the government says it will undertake a comprehensive review of the utility meant to identify cost-savings measures for customers often asked to pay an extra $2 a month on electricity bills.

The Liberal critic, Tracy Redies, says the one year rate freeze is going to cost BC Hydro, calling it a distraction from the bigger issue of the future of the Site C project and the oversight of a BC Hydro fund surplus as well.

"A one year rate freeze costs Hydro $150 million," Redies said. "That means there's $150 million less to invest in capital projects and other investments that the utility needs to make."

"This is putting off decisions that should be made today to the future."

Recommendations from the review — including possible new rates — will be implemented starting in April 2019.

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NnG Offshore Wind Farm restarts construction off Scotland, backed by EDF Renewables and ESB, CfD 2015, 54 turbines, powering 375,000 homes, 500 jobs, delivering GBP 540 million, with Covid-19 safety measures and staggered workforce.

Key Points

A 54-turbine Scottish offshore project by EDF Renewables and ESB, resuming to power 375,000 homes and support 500 jobs.

✅ Awarded a CfD in 2015; 54 turbines off Scotland's east coast.

✅ Projected to power 375,000 homes and deliver GBP 540 million locally.

✅ Staggered workforce return with Covid-19 control measures and oversight.

Neart Na Gaoithe (NnG) Offshore Wind Farm, owned by  EDF Renewables and Irish firm ESB, stopped construction in March, even as the world's most powerful tidal turbine showcases progress in marine energy.

Project boss Matthias Haag announced last night the 54-turbine wind farm would restart construction this week, as the largest UK offshore wind farm begins supplying power, underscoring sector momentum.

Located off Scotland’s east coast, where wind farms already power millions of homes, it was awarded a Contract for Difference (CfD) in 2015 and will look to generate enough energy to power 375,000 homes.

It is expected to create around 500 jobs, and supply chain growth like GE's new offshore blade factory jobs shows wider industry momentum, while also delivering £540 million to the local economy.

Mr Haag, NnG project director, said the wind farm build would resume with a small, staggered workforce return in line social distancing rules, and with broader energy sector conditions, including Hinkley Point C setbacks that challenge the UK's blueprint.

He added: “Initially, we will only have a few people on site to put in place control measures so the rest of the team can start work safely later that week.

“Once that’s happened we will have a reduced workforce on site, including essential supervisory staff.

“The arrangements we have put in place will be under regular review as we continue to closely monitor Covid-19 and follow the Scottish Government’s guidance.”

NnG wind farm, a 54-turbine projects, was due to begin full offshore construction in June 2020 before the Covid-19 outbreak, at a time when a Scottish tidal project had just demonstrated it could power thousands of homes.

EDF Renewables sold half of the NnG project to Irish firm ESB in November last year, and parent company EDF recently saw the Hinkley C reactor roof lifted into place, highlighting progress alongside renewables.

The first initial payment was understood to be around £50 million.

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Denmark 2019 electricity CO2 intensity shows record-low emissions as renewable energy surges, wind power dominates, offshore wind expands, and coal phase-out accelerates Denmark's energy transition and grid decarbonization, driven by higher CO2 prices and flexibility.

Key Points

It is 135 g CO2/kWh, a record low enabled by wind power growth, offshore wind, and a sharp coal decline.

✅ Average emissions fell to 135 g CO2/kWh, the lowest on record

✅ Wind and solar supplied 49.9% of national electricity use

✅ Coal consumption dropped 46% as CO2 allowance prices rose

Danish electricity producers set a new green record in 2019, when an average produced kilowatt-hour emitted 135 gr CO2 / kWh.

It is the lowest CO2 emission ever measured in Denmark and about one-seventh of what the electricity producers emitted in 1990.

Never has a kilowatt-hour produced emitted as little CO2 as it did in 2019. And that's according to Energinet's recently published annual Environmental Report on Danish electricity generation and cogeneration, two primary causes.

One reason is that more green power has been produced because the Horns Rev 3 offshore wind farm, which can produce electricity for 425,000 households, was commissioned in 2019. The other is that Danish coal consumption fell by 46 percent from 2018 to 2019, as coal phase-out plans gathered pace across the sector. the dramatic decline in coal consumption is partly due a significant increase in the price of CO2 quotas, and thus also the price of CO2 emissions.

'Historically, 135 gr CO2 / kWh is a really, really low figure, showing the impressive green travel that the Danish electricity system has been on. In 1990, a kilowatt-hour produced emitted over 1000 grams of CO2, ie about seven times as much as today, 'says Hanne Storm Edlefsen, area manager in Energinet Power Systems Responsibility.

Wind energy is the dominant form of electricity generation in Denmark, a pattern the UK wind beat coal in 2016 when shifting away from fossil fuels.

17.1 TWh. Danish wind turbines and solar cells generated so much electricity in 2019, corresponding to 49.9 per cent. of Danish electricity consumption, reflecting broader EU wind and solar growth trends as well. An increase of 15 per cent. The wind turbines alone produced 16 TWh, which is not only a new green record, but also puts a thick line that wind energy is by far the most dominant form of electricity generation in Denmark.

'Thanks to our large wind resources, turbines are by far the largest supplier of renewable energy in Denmark, and this will be for many years to come. The large price drop in new wind energy in recent years - for both onshore and offshore winds - will ensure that wind energy will drive a large part of the growth in renewable energy in the coming years, as new wind generation records are set in markets like the UK, 'says Soren Klinge, electricity market manager at Wind Denmark.

Conversely, total electricity generation from fossil and bio-based fuels decreased by 26 PJ (petajoule ed.), Corresponding to 34 per cent. from 2018 to 2019, mirroring renewables overtaking coal in Germany. Nevertheless, net electricity generation was just under 30 TWh both years.

'It is worth noting that while fossil fuels are being phased out, Denmark maintains its annual net production of electricity. The green, so to speak, replaces the black. It once again underpins that green conversion, high security of supply and an affordable electricity price can go hand in hand, 'says Hanne Storm Edlefsen.

Danish power system is ready for a green future

Including trade in electricity with neighboring countries, 1 kWh in a Danish outlet generates 145 gr CO2 / kWh.

'There has been a very significant development in the Danish electricity system in recent years, where the electricity system can now be operated solely on the renewable energy. It is a remarkable development, also from an international perspective where low-carbon progress stalled in the UK in 2019, that one would not have thought possible for just a few years ago, 'he says.

More than expected have phased out coal

The electricity from the Danish sockets will be greener , predicts Energinet's environmental report , which expects CO2 intensity in the coming years. This is explained by an expectation of increased electrification of energy consumption, together with a continued expansion with wind and solar.

'Wind energy is the cornerstone of the green transition. With the commissioning of the Kriegers Flak offshore wind farm and several major onshore wind turbine projects within the next few years, we can well expect that only the wind's share of electricity consumption will exceed 50 per cent hopefully as early as 2021,' concludes Soren Klinge.

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Alberta-BC Pipeline Dispute centers on Trans Mountain expansion, diluted bitumen shipments, federal approval, spill response capacity, and electricity trade, as Alberta suspends power talks and Ottawa insists the Kinder Morgan project proceeds in national interest.

Key Points

Dispute over Trans Mountain expansion, bitumen limits, and jurisdiction between Alberta, B.C., and Canada.

✅ Alberta suspends BC electricity talks as leverage

✅ Ottawa affirms federal approval and spill response

✅ BC plans advisory panel on diluted bitumen risks

Alberta Premier Rachel Notley says her government is suspending talks with British Columbia on the purchase of electricity from the western province.

It’s the first step in Alberta’s fight against the B.C. government’s proposal to obstruct the Kinder Morgan oil pipeline expansion project by banning increased shipments of diluted bitumen to the province’s coast.

Up to $500 million annually for B.C.’s coffers from electricity exports hangs in the balance, Notley said.

“We’re prepared to do what it takes to get this pipeline built — whatever it takes,” she told a news conference Thursday after speaking with Prime Minister Justin Trudeau on the phone.

Notley said she told Trudeau, who’s in Edmonton for a town-hall meeting, that the federal government needs to act decisively to end the dispute.

Speaking on Edmonton talk radio station CHED earlier in the day, Trudeau said the pipeline expansion is in the national interest and will go ahead, even as the federal government undertakes a study on electrification across sectors.

“That pipeline is going to get built,” Trudeau said. “We will stand by our decision. We will ensure that the Kinder Morgan pipeline gets built.”

B.C.’s environment minister has said his minority government plans to ban increased shipments until it can determine that shippers are prepared and able to properly clean up a spill, and, separately, has implemented an electricity rate freeze affecting consumers. He said he will establish an independent scientific advisory panel to study the issue.

The move infuriated Notley, who has accused B.C. of trying to change the rules after the federal government gave the project the green light. B.C. has the right to regulate how any spills would be cleaned up, but can’t dictate what flows through pipelines, she said.

Trudeau said Canada needs to get Alberta’s oil safely to markets other than the U.S. energy market today. He said the federal government did the research and has spent billions on spill response.

“The Kinder Morgan pipeline is not a danger to the B.C. coast,” he said.

Notley said she thanked Trudeau for his assurance that the project will go ahead, but the federal government has to do more to ensure the pipeline’s expansion.

“This is not an Alberta-B.C. issue. This is a Canada-B.C. issue,” she said. “This kind of uncertainty is bad for investment and bad for working people

“Enough is enough. We need to get these things built.”

B.C. Premier John Horgan said his government consulted Alberta and Ottawa about his province’s intentions, noting that Columbia River Treaty talks also shape regional electricity policy.

“I don’t see what the problem is,” Horgan said Thursday at a school opening north of Kelowna, B.C. “It’s within our jurisdiction to put in place regulations to protect the public interest.

“That’s what we are doing.”

He downplayed any possibility of court action or sanctions by Alberta.

“There’s nothing to take to court,” Horgan said. “We are consulting with the people of B.C. It’s way too premature to talk about those sorts of issues.

“Sabre-rattling doesn’t get you very far.”

Speaking in Ottawa, Natural Resources Minister Jim Carr wouldn’t say what Canada might do if British Columbia implements its regulation.

“That’s speculative,” said Carr.

He noted at this point, B.C. has just pledged to consult. He said the federal government heard from thousands of people before the pipeline was approved.

“That’s what they have announced — an intention to consult. We have already consulted.”

B.C.’s proposal creates more uncertainty for Kinder Morgan’s already-delayed Trans Mountain expansion project that would nearly triple the capacity of its pipeline system to 890,000 barrels a day.

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Power Grid Attacks surge across substations and transmission lines, straining critical infrastructure as DHS and FBI cite vandalism, domestic extremists, and cybersecurity risks impacting resilience, outages, and grid reliability nationwide.

Key Points

Power Grid Attacks are deliberate strikes on substations and lines to disrupt power and weaken grid reliability.

✅ Physical attacks rose across multiple states and utilities.

✅ DHS and FBI warn of threats to critical infrastructure.

✅ Substation security and grid resilience upgrades urged.

Even before Christmas Day attacks on power substations in five states in the Pacific Northwest and Southeast, similar incidents of attacks, vandalism and suspicious activity were on the rise.

Federal energy reports through August – the most recent available – show an increase in physical attacks at electrical facilities across the nation this year, continuing a trend seen since 2017.

At least 108 human-related events were reported during the first eight months of 2022, compared with 99 in all of 2021 and 97 in 2020. More than a dozen cases of vandalism have been reported since September.

The attacks have prompted a flurry of calls to better protect the nation's power grid, with a renewed focus on protecting the U.S. power grid across sectors, but experts have warned for more than three decades that stepped-up protection was needed.

Attacks on power stations on the rise 
Twice this year, the Department of Homeland Security warned "a heightened threat environment" remains for the nation, including its critical infrastructure amid reports of suspected Russian breaches of power plant systems. 

At least 20 actual physical attacks were reported, compared with six in all of 2021. 
Suspicious-activity reports jumped three years ago, nearly doubling in 2020 to 32 events. In the first eight months of this year, 34 suspicious incidents were reported.
Total human-related incidents – including vandalism, suspicious activity and cyber events such as Russian hackers and U.S. utilities in recent years – are on track to be the highest since the reports started showing such activity in 2011.

Attacks reported in at least 5 states
Since September, attacks or potential attacks have been reported on at least 18 additional substations and one power plant in Florida, Oregon, Washington and the Carolinas. Several involved firearms.

• In Florida: Six "intrusion events" occurred at Duke Energy substations in September, resulting in at least one brief power outage, according to the News Nation television network, which cited a report the utility sent to the Energy Department. Duke Energy spokesperson Ana Gibbs confirmed a related arrest, but the company declined to comment further.
• In Oregon and Washington state: Substations were attacked at least six times in November and December, with firearms used in some cases, local news outlets reported. On Christmas Day, four additional substations were vandalized in Washington State, cutting power to more than 14,000 customers.
• In North Carolina: A substation in Maysville was vandalized on Nov. 11. On Dec. 3, shootings that authorities called a "targeted attack" damaged two power substations in Moore County, leaving tens of thousands without power amid freezing temperatures.
• In South Carolina: Days later, gunfire was reported near a hydropower plant, but police said the shooting was a "random act."

It's not yet clear whether any of the attacks were coordinated. After the North Carolina attacks, a coordinating council between the electric power industry and the federal government ordered a security evaluation.

FBI mum on its investigations
The FBI is looking into some of the attacks, including cyber intrusions where hackers accessed control rooms in past cases, but it hasn't said how many it's investigating or where. 

Shelley Lynch, a spokesperson for the FBI's Charlotte field office, confirmed the bureau was investigating the North Carolina attack. The Kershaw County Sheriff's Office reported the FBI was looking into the South Carolina incident.

Utilities in Oregon and Washington told news outlets they were cooperating with the FBI, but spokespeople for the agency's Seattle and Portland field offices said they couldn't confirm or deny an investigation.

Could domestic extremists be involved?
In January, the Department of Homeland Security said domestic extremists had been developing "credible, specific plans" since at least 2020, including a Neo-Nazi plot against power stations detailed in a federal complaint, and would continue to "encourage physical attacks against electrical infrastructure."

In February, three men who ascribed to white supremacy and Neo-Nazism pleaded guilty to federal crimes related to a scheme to attack the grid with rifles.

In a news release, Timothy Langan, assistant director of the FBI’s Counterterrorism Division, said the defendants "wanted to attack regional power substations and expected the damage would lead to economic distress and civil unrest."

Why is the power grid so hard to protect?
Industry experts, federal officials and others have warned in one report after another since at least 1990 that the power grid was at risk, and a recent grid vulnerability report card highlights dangerous weak points, said Granger Morgan, an engineering professor at Carnegie Mellon University who chaired three National Academies of Sciences reports.

The reports urged state and federal agencies to collaborate to make the system more resilient to attacks and natural disasters such as hurricanes and storms. 

"The system is inherently vulnerable, with the U.S. grid experiencing more blackouts than other developed nations in one study. It's spread all across the countryside," which makes the lines and substations easy targets, Morgan said. The grid includes more than 7,300 power plants, 160,000 miles of high-voltage power lines and 55,000 transmission substations.

One challenge is that there's no single entity whose responsibilities span the entire system, Morgan said. And the risks are only increasing as the grid expands to include renewable energy sources such as solar and wind, he said. 

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