Alberta Advances Electricity Plans with Rate of Last Resort


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Alberta Rate of Last Resort provides a baseline electricity price, boosting energy reliability, affordability, and consumer protection amid market volatility, aligning with grid modernization, integration, pricing transparency, and oversight from the Alberta Utilities Commission.

 

Key Points

A fallback electricity rate ensuring affordable, reliable power and consumer protection during market volatility.

✅ Guarantees a stable baseline price when markets spike

✅ Supports vulnerable customers lacking competitive offers

✅ Overseen by AUC to balance protection and competition

 

The Alberta government has announced significant strides in its electricity market reforms, unveiling a new plan under new electricity rules that aims to enhance energy reliability and affordability for consumers. This initiative, highlighted by the introduction of a "rate of last resort," is a critical response to ongoing challenges in the province's electricity sector, particularly following recent market volatility and increasing consumer concerns about rising electricity prices across the province.

Understanding the Rate of Last Resort

The "rate of last resort" (RLR) is designed to ensure that all Albertans have access to affordable electricity, even when they face challenges securing a competitive rate in the open market. This measure is particularly beneficial for those who may not have the means or the knowledge to navigate complex energy contracts, such as low-income families or seniors.

Under this new plan, the RLR will serve as a safety net, guaranteeing a stable and predictable rate for customers who find themselves without a competitive provider. This move is seen as a crucial step in addressing the needs of vulnerable populations who might otherwise be at risk of being shut out of the energy market.

Market Volatility and Consumer Protection

Alberta's electricity market has faced significant fluctuations over the past few years, and is headed for a reshuffle as policymakers respond to unpredictability in pricing and service availability. The rise in energy costs has caused distress among consumers, with many advocating for stronger protections against sudden price hikes.

The government's recent decision to implement the RLR is a direct acknowledgment of these concerns. By creating a baseline rate, officials aim to provide consumers with peace of mind, knowing that there is a fallback option should market conditions turn unfavorable. This initiative complements other measures aimed at enhancing consumer protections, including improved transparency in pricing, the consumer price cap on power bills being advanced, and the regulation of energy suppliers.

Broader Implications for Alberta’s Energy Landscape

This plan is not only about consumer protection; it also represents a broader shift towards a more sustainable and stable energy market in Alberta, aligning with proposed electricity market changes under consideration. The introduction of the RLR is part of a comprehensive strategy that includes investments in renewable energy and infrastructure improvements. By modernizing the grid and promoting cleaner energy sources, the government aims to reduce dependency on fossil fuels while maintaining reliability and affordability.

Additionally, this move aligns with the province's goals to meet climate targets and transition to a more sustainable energy future as Alberta is changing how it produces and pays for electricity through policy updates. As the demand for clean energy grows, Alberta is positioning itself to be a leader in this transformation, appealing to both residents and businesses committed to sustainability.

Public and Industry Reactions

The announcement has garnered mixed reactions from various stakeholders. While consumer advocacy groups have largely praised the government's efforts to protect consumers and ensure affordable electricity, some industry experts express concerns about potential long-term impacts on competition, arguing the market needs competition to remain dynamic. They argue that while the RLR provides immediate relief, it could disincentivize companies from offering competitive rates, leading to a less dynamic market in the future.

The Alberta Utilities Commission (AUC) is expected to play a pivotal role in overseeing the implementation of the RLR, ensuring that it operates effectively and that any unintended consequences are addressed swiftly. This regulatory oversight will be crucial in balancing consumer protection with the need for a competitive energy market.

Conclusion

As Alberta forges ahead with its electricity market reforms, the introduction of the rate of last resort marks a significant step in enhancing consumer protection and ensuring energy affordability. While challenges remain, the government's proactive approach reflects a commitment to addressing the needs of all Albertans, particularly those most vulnerable to market fluctuations.

In this evolving energy landscape, the RLR will serve not only as a safety net for consumers but also as a foundation for a more sustainable and reliable electricity system. As Alberta continues to adapt to changing energy demands and climate considerations, the effectiveness of these measures will be closely monitored, shaping the future of the province’s electricity market.

 

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Renewable growth drives common goals for electricity networks across the globe

Energy Transition Grid Reforms address transmission capacity, interconnection, congestion management, and flexibility markets, enabling renewable integration and grid stability while optimizing network charges and access in Australia, Ireland, and Great Britain.

 

Key Points

Measures to expand transmission, boost flexibility, and manage congestion for reliable, low-carbon electricity systems.

✅ Transmission upgrades and interconnectors ease congestion

✅ Flexible markets, DER, and storage bolster grid stability

✅ Evolving network charges and access incentivize siting

 

Electricity networks globally are experiencing significant increases in the volume of renewable capacity as countries seek to decarbonise their power sectors, even as clean energy's 'dirty secret' highlights integration trade-offs, without impacting the security of supply. The scale of this change is creating new challenges for power networks and those responsible for keeping the lights on.

The latest insight paper from Cornwall Insight – Market design amidst global energy transition – looks into this issue. It examines the outlook for transmission networks, and how legacy design and policies are supporting decarbonisation, aligning with IRENA findings on renewables and shaping the system. The paper focuses on three key markets; Australia, Ireland and Great Britain (GB).

Australia's main priority is to enhance transmission capacity and network efficiency; as concerns over excess solar risking blackouts grow in distribution networks, without this, the transmission system will be a barrier to growth for decentralised flexibility and renewables. In contrast, GB and Ireland benefit from interconnection with other national markets. This provides them with additional levers that can be pulled to manage system security and supply. However, they are still trying to hone and optimise network flexibility in light of steepening decarbonisation objectives.

Unsurprisingly, renewable energy resources have been growing in all three markets, with Ireland regarded as a leader in grid integration, with this expected to continue for the foreseeable future. Many of these projects are often located in places where network infrastructure is not as well developed, creating pressure on system operation as a result.

In all three markets, unit charges are rising, driven by a reduced charging base as decentralised energy grows quickly. This combination of changes is leading to network congestion, a challenge mirrored by the US grid overhaul for renewables underway, as transmission network development struggles to keep up, and flexibility markets are being optimised and changed.

In summary, reforms are on-going in each jurisdiction to accommodate the rapid physical transformation of the generation mix. Each has its objectives and tensions which are reflective of wider global reform programmes being undertaken in most developed, liberalised and decarbonising energy markets.

Gareth Miller, CEO of Cornwall Insight, said: “Despite differences in market design and characteristics, all three markets are grappling with similar issues, that comes from committing to deep decarbonisation. This includes the most appropriate methods for charging for networks, managing access to them and dealing with issues such as network congestion and constraint.

“In all three countries, renewable projects are often placed in isolated locations, as seen in Scotland where more pylons are needed to keep the lights on, away from the traditional infrastructure that is closer to demand. However, as renewable growth is set to continue, the networks will need to transition from being demand-centric to more supply orientated.

“Both system operators and stakeholders will need to continually evaluate their market structures and designs to alleviate issues surrounding locational congestion and grid stability. Each market is at very different stages in the process in trying to improve any problems implementing solutions to allow for higher efficiencies in renewable energy integration.

“It is uncertain whether any of the proposed changes will fundamentally resolve the issues that come with increased renewables on the system. However, despite marked differences, they certainly could all learn from each other and elements of their network arrangements, as well as from US decarbonisation strategies research.”

 

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India’s Kakrapur 3 achieves criticality

Kakrapar Unit 3 700MWe PHWR achieved first criticality, showcasing indigenously designed nuclear power, NPCIL operations, Make in India manufacturing, advanced safety systems, grid integration, and closed-fuel-cycle strategy for India's expansion of pressurised heavy water reactors.

 

Key Points

India's first indigenous 700MWe PHWR at Kakrapar reached criticality, advancing NPCIL's Make in India nuclear power.

✅ First indigenous 700MWe PHWR achieves criticality

✅ NPCIL-built, Make in India components and contractors

✅ Advanced safety: passive decay heat removal, containment spray

 

Unit 3 of India’s Kakrapar nuclear plant in Gujarat achieved criticality on 22 July, as milestones at nuclear projects worldwide continue to be reached. It is India’s first indigenously designed 700MWe pressurised heavy water reactor (PHWR) to achieve this milestone.

Prime Minister Narendra Modi congratulated nuclear scientists, saying the reactor is a shining example of the 'Make in India' campaign and of the government's steps to get nuclear back on track in recent years, and a trailblazer for many such future achievements. 

India developed its own nuclear power generation technology as it faced sanctions from the international community following its first nuclear weapons test in in 1974. It has not signed the Nuclear Non-Proliferation Treaty, while China's nuclear energy development is on a steady track according to experts. India has developed a three-stage nuclear programme based on a closed-fuel cycle, where the used fuel of one stage is reprocessed to produce fuel for the next stage.

Kakrapar 3 was developed and is operated by state-owned Nuclear Power Corporation of India Ltd (NPCIL), while in Europe KHNP considered for a Bulgarian project as countries weigh options. The first two units are 220MWe PHWRs commissioned in 1993 and 1995. NPCIL said in a statement that the components and equipment for Kakrapur 3 were “manufactured by lndian industries and the construction and erection was undertaken by various lndian contractors”.

The 700MWe PHWRs have advanced safety features such as steel lined inner containment, a passive decay heat removal system, a containment spray system, hydrogen management systems etc, the statement added.

Fuel loading was completed by mid-March, a crucial step in Abu Dhabi during its commissioning as well. “Thereafter, many tests and procedures were carried out during the lockdown period following all COVlD-19 guidelines.”

“As a next step, various experiments / tests will be conducted and power will be increased progressively, a path also followed by Barakah Unit 1 reaching 100% power before commercial operations.” Kakrapur 3 will be connected to the western grid and will be India’s 23rd nuclear power reactor.

Kakrapur 3 “is the front runner in a series of 16 indigenous 700MWe PHWRs which have been accorded administrative approval and financial sanction by the government and are at various stages of implementation”. Five similar units are under construction at Kakarapur 4, Rajasthan 7&8 and Gorakhpur1&2.

DAE said in January 2019 that India planned to put 21 new nuclear units with a combined generating capacity of 15,700MWe into operation by 2031, including ten indigenously designed PHWRs, while Bangladesh develops nuclear power with IAEA assistance. 

 

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London Underground Power Outage Disrupts Rush Hour

London Underground Power Outage 2025 disrupted Tube lines citywide, with a National Grid voltage dip causing service suspensions, delays, and station closures; TfL recovery efforts spotlight infrastructure resilience, contingency planning, and commuter safety communications.

 

Key Points

A citywide Tube disruption on May 12, 2025, triggered by a National Grid voltage dip, exposing resilience gaps.

✅ Bakerloo, Waterloo & City, Northern suspended; Jubilee disrupted.

✅ Cause: brief National Grid fault leading to a voltage dip.

✅ TfL focuses on recovery, communication, and resilience upgrades.

 

On May 12, 2025, a significant power outage disrupted the London Underground during the afternoon rush hour, affecting thousands of commuters across the city. The incident highlighted vulnerabilities in the city's transport infrastructure, echoing a morning outage in London reported earlier, and raised concerns about the resilience of urban utilities.

The Outage and Its Immediate Impact

The power failure occurred around 2:30 PM, leading to widespread service suspensions and delays on several key Tube lines. The Bakerloo and Waterloo & City lines were completely halted, while the Jubilee line experienced disruptions between London Bridge and Finchley Road. The Northern line was also suspended between Euston and Kennington, as well as south of Stockwell. Additionally, Elizabeth Line services between Abbey Wood and Paddington were suspended. Some stations were closed for safety reasons due to the lack of power.

Commuters faced severe delays, with many stranded in tunnels or on platforms. The lack of information and communication added to the confusion, as passengers were left uncertain about the cause and duration of the disruptions.

Cause of the Power Failure

Transport for London (TfL) attributed the outage to a brief fault in the National Grid's transmission network. Although the fault was resolved within seconds, it caused a voltage dip that affected local distribution networks, leading to the power loss in the Underground system.

The incident underscored the fragility of the city's transport infrastructure, particularly the aging electrical and signaling systems that are vulnerable to such faults, as well as weather-driven events like a major windstorm outage that can trigger cascading failures. While backup systems exist, their capacity to handle sudden disruptions remains a concern.

Broader Implications for Urban Infrastructure

This power outage is part of a broader pattern of infrastructure challenges facing London. In March 2025, a fire at an electrical substation in Hayes led to the closure of Heathrow Airport, affecting over 200,000 passengers, while similar disruptions at BWI Airport have underscored aviation vulnerabilities. These incidents have prompted discussions about the resilience of the UK's energy and transport networks.

Experts argue that aging infrastructure, coupled with increasing demand and climate-related stresses, poses significant risks to urban operations, as seen in a North Seattle outage and in Toronto storm-related outages that tested local grids. There is a growing call for investment in modernization and diversification of energy sources to ensure reliability and sustainability.

TfL's Response and Recovery Efforts

Following the outage, TfL worked swiftly to restore services. By 11 PM, all but one line had resumed operations, with only the Elizabeth Line continuing to experience severe delays. TfL officials acknowledged the inconvenience caused to passengers and pledged to investigate the incident thoroughly, similar to the Atlanta airport blackout inquiry conducted after a major outage, to prevent future occurrences.

In the aftermath, TfL emphasized the importance of clear communication with passengers during disruptions and committed to enhancing its contingency planning and infrastructure resilience.

Public Reaction and Ongoing Concerns

The power outage sparked frustration among commuters, many of whom took to social media to express their dissatisfaction, echoing sentiments during Houston's extended outage about communication gaps and delays. Some passengers reported being trapped in tunnels for extended periods without clear guidance from staff.

The incident has reignited debates about the adequacy of London's transport infrastructure and the need for comprehensive upgrades. While TfL has initiated reviews and improvement plans, the public remains concerned about the potential for future disruptions and the city's preparedness to handle them.

The May 12 power outage serves as a stark reminder of the vulnerabilities inherent in urban infrastructure. As London continues to grow and modernize, ensuring the resilience of its transport and energy networks will be crucial. This includes investing in modern technologies, enhancing communication systems, and developing robust contingency plans to mitigate the impact of future disruptions. For now, Londoners are left reflecting on the lessons learned from this incident and hoping for a more reliable and resilient transport system in the future.

 

 

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Renewable power surpasses fossil fuels for first time in Europe

EU Renewable Power Overtakes Fossil Fuels, reflecting a greener energy mix as wind, solar, and hydro expand, cutting CO2 emissions and curbing coal while negative prices rise amid pandemic-driven demand drops.

 

Key Points

A milestone as renewables surpass fossil power in the EU, driven by wind, solar, hydro growth and pandemic demand.

✅ 40% renewables vs 34% fossil in H1 across 27 EU states

✅ Wind, solar, hydro rose; coal generation fell 32% year-on-year

✅ Lower demand, carbon prices, grid priority boosted clean output

 

Renewable power for the first time contributed a bigger share in the European generation mix than fossil fuels, as described in Europe's green surge as the fallout from the pandemic cut energy demand.

About 40 percent of the electricity in the first half in the 27 EU countries came from renewable sources, exceeding the global renewables share reported elsewhere, compared with 34 percent from plants burning fossil fuels, according to environmental group Ember in London. As a result, carbon dioxide emissions from the power sector fell 23 percent.

The rise is significant and encouraging for law makers as Europe prepares to spend billions of euros to recover from the virus, with wind power investments underscoring the momentum, and set the bloc on track to neutralize its carbon footprint by the middle of the century.

“This marks a symbolic moment ​in the transition of Europe’s electricity sector,” said Dave Jones, an electricity analyst at Ember. “For countries like Poland and Czech Republic grappling with how to get off coal, there is now a clear way out.”

While power demand slumped, output from wind and solar farms increased, reflecting global wind and solar gains, because more plants came online in breezy and sunny weather. At the same time, wet conditions boosted hydro power in Iberia and the Nordic markets.

Those conditions helped renewables become a rare bright spot throughout the economic tumult this year. In many areas, renewable sources of electricity have priority to the grid, meaning they could keep growing even as demand shrank and other power plants were turned off.

Electricity demand in the EU fell 7 percent overall. Fossil-fuel power generation plunged 18 percent in the first half compared with a year earlier. Renewable generation grew by 11 percent, according to Ember.

Coal was by far the biggest loser in 2020. It’s one of the most-polluting sources of power and its share is slumping in Europe as the price of carbon increases, with renewables surpassing coal in the US illustrating the broader shift, and governments move to cut emissions. Power from coal fell 32 percent across the EU.

Despite the economics, the decision to shut off coal for good will come down to political agreements between producers and governments, while reducing reliance on Russian energy reshapes policy debates.

One consequence of the jump in renewables is that negative prices have increased, as solar is reshaping prices in Northern Europe in similar ways. On particularly windy or sunny days when there isn’t much demand, the grid can be flooded with power. That’s leading wind farms to be shut off and customers to be paid to consume electricity.

 

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N.W.T. green energy advocate urges using more electricity for heat

Taltson Hydro Electric Heating directs surplus hydro power in the South Slave to space heat via discounted rates, displacing diesel and cutting greenhouse gas emissions, with rebates, separate metering, and backup systems shaping adoption.

 

Key Points

An initiative using Taltson's surplus hydro to heat buildings, discount rates replace diesel and cut emissions.

✅ 6.3 cents/kWh heating rate needs separate metering, backup heat

✅ 4-6 MW surplus hydro; outages require diesel; rebates available

✅ Program may be curtailed if new mines or mills demand power

 

A Northwest Territories green energy advocate says there's an obvious way to expand demand for electricity in the territory's South Slave region without relying on new mining developments — direct it toward heating.

One of the reasons the N.W.T. has always had some of the highest electricity rates in Canada is that a small number of people have to shoulder the huge costs of hydro facilities and power plants.

But some observers point out that residents consume as much energy for heat as they do for conventional uses of electricity, such as lighting and powering appliances. Right now almost all of that heat is generated by expensive oil imported from the United States.

The Northwest Territories Power Corporation says the 18-megawatt Taltson hydro system that serves the South Slave typically has four to six megawatts of excess generating capacity, even as record demand in Yukon is reported. It says using some of that to generate heat is a government priority.

But renewable energy advocate and former N.W.T. MP Dennis Bevington, who lives in the South Slave and heats his home using electricity, says the government is not making it easy for people to tap into that surplus to heat their homes and businesses, a debate that some say would benefit from independent planning at the national level.

Discount rate for heating, but there are catches
The power corporation offers hydro electricity from Taltson to use for heating at a much lower price than it charges for electricity generally. The discounted rate is not available to residential customers.

According to the corporation, consumers pay only 6.3 cents per kilowatt hour compared to the regular rate of just under 24 cents, while Manitoba Hydro financial pressures highlight the risks of expanding demand without new generation.

But to distinguish between the two, users are required to cover the cost of installing a separate power meter. Bevington, who developed the N.W.T.'s first energy strategy, says that is an unnecessary expense.

Taltson expansion key to reducing N.W.T.'s greenhouse gas emissions, says gov't
"The billing is how you control that," he said. "You establish an average electrical use in the winter months. That could be the base rate. Then, if you use power in the winter months above that, you get the discount."

Users are also required to have a back-up heating system. Taltson hydro power offers heating on the understanding that when the hydro system is down — such as during power outages or annual summer maintenance of the hydro system — electricity is not available for heating.
The president and CEO of the power corporation says there's a good reason for that. "The diesels are more expensive to run and they're actually greenhouse gas emitting," said Noel Voykin. "The whole idea of this [electric heat] program is to provide clean energy that is not otherwise being used."

According to the corporation, there have been huge savings for the few who have tapped into the hydro system to heat their buildings, and across Canada utilities are exploring novel generation such as NB Power's Belledune seawater project to diversify supply.

It's being used to heat Aurora College's Breynat Hall, and Joseph B. Tyrrell Elementary School and the transportation department garage in Fort Smith, N.W.T. Electricity is also used to heat the Jackfish power plant in the North Slave region.

The corporation says that during a four-year period, this saved more than 600,000 litres of diesel fuel and reduced greenhouse gas emissions by about 1,700 tonnes.

Bevington says the most obvious place to expand the use of electrical heat is to government housing.

"We have a hundred public housing units in Fort Smith," he said. "The government is putting diesel into those units [for heating] and they could be putting in their own electricity."

Heating a tiny part of energy market
The corporation says it sells only about 2.5 megawatts of electricity for heating each year, which is less than four per cent of the power it sells in the region. It says with some upgrades, another two megawatts of electricity could be made available for electrical heat.

Bevington says the corporation could do more to market electricity for heating. Voykin said that's the government's job. There are three programs that offer rebates to residents and businesses converting to electric heating.

If you build it, will they come? N.W.T. gov't hopes hydro expansion will attract investment
There are better options than billion dollar Taltson expansion, say energy leaders
There may be a reason why the government and the corporation are not more aggressively promoting using surplus electricity in the Taltson system for heating, as large hydro ambitions have reopened old wounds in places like Quebec and Newfoundland and Labrador during recent debates.

It is anticipating that new industrial customers may require that excess capacity in the coming years, and experiences elsewhere show that accommodating new energy-intensive customers can be challenging for utilities. Voykin said those potential new customers include a proposed mine at Pine Point and a pellet mill in Enterprise, N.W.T., even as biomass use faces environmental pushback in some regions.

The corporation says any surplus power in the system will be sold at standard rates to any new industrial customers instead of at discount rates for heating. If that requires cutting back on the heating program, it will be cut back.

 

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Growing pot sucks up electricity and pumps out an astounding amount of carbon dioxide — it doesn't have to

Sustainable Cannabis Cultivation leverages greenhouse design, renewable energy, automation, and water recapture to cut electricity use, emissions, and pesticides, delivering premium yields with natural light, smart sensors, and efficient HVAC and irrigation control.

 

Key Points

A data-driven, low-impact method that cuts energy, water, and chemicals while preserving premium yields.

✅ 70-90% less electricity vs. conventional indoor grows

✅ Natural light, solar, and rainwater recapture reduce footprint

✅ Automation, sensors, and HVAC stabilize microclimates

 

In the seven months since the Trudeau government legalized recreational marijuana use, licensed producers across the country have been locked in a frenetic race to grow mass quantities of cannabis for the new market.

But amid the rush for scale, questions of sustainability have often taken a back seat, and in Canada, solar adoption has lagged in key sectors.

According to EQ Research LLC, a U.S.-based clean-energy consulting firm, cannabis facilities can need up to 150 kilowatt-hours of electricity per year per square foot. Such input is on par with data centres, which are themselves 50 to 200 times more energy-intensive than a typical office building, and achieving zero-emission electricity by 2035 would help mitigate the associated footprint.

At the Lawrence Berkley National Laboratory in California, a senior scientist estimated that one per cent of U.S. electricity use came from grow ops. The same research — published in 2012 — also found that the procedures for refining a kilogram of weed emit around 4,600 kilograms of carbon dioxide to the atmosphere, equivalent to operating three million cars for a year, though a shift to zero-emissions electricity by 2035 could substantially cut those emissions.

“All factors considered, a very large expenditure of energy and consequent ‘environmental imprint’ is associated with the indoor cultivation of marijuana,” wrote Ernie Small, a principal research scientist for Agriculture and Agri-Food Canada, in the 2018 edition of the Biodiversity Journal.

Those issues have left some turning to technology to try to reduce the industry’s footprint — and the economic costs that come with it — even as more energy sources make better projects for forward-looking developers.

“The core drawback of most greenhouse environments is that you’re just getting large rooms, which are harder to control,” says Dan Sutton, the chief executive officer of Tantalus Labs., a B.C.-based cannabis producer. “What we did was build a system specifically for cannabis.”

Sutton is referring to SunLab, the culmination of four years of construction, and at present the main site where his company nurtures rows of the flowering plant. The 120,000-square foot structure was engineered for one purpose: to prove the merits of a sustainable approach.

“We’re actually taking time-series data on 30 different environmental parameters — really simple ones like temperature and humidity — all the way down to pH of the soil and water flow,” says Sutton. “So if the temperature gets a little too cold, the system recognizes that and kicks on heaters, and if the system senses that the environment is too hot in the summertime, then it automatically vents.”

A lot is achieved without requiring much human intervention, he adds. Unlike conventional indoor operations, SunLab demands up to 90 per cent less electricity, avoids using pesticides, and draws from natural light and recaptured rainwater to feed its crops.

The liquid passes through a triple-filtration process before it is pumped into drip irrigation tubing. “That allows us to deliver a purity of water input that is cleaner than bottled water,” says Sutton.

As transpiration occurs, a state-of-the-art, high-capacity airflow suspended below the ceiling cycles air at seven-minute intervals, repeatedly cooling the air and preventing outbreaks of mould, while genetically modified “guardian” insects swoop in to eliminate predatory pests.

“When we first started, people never believed we would cultivate premium quality cannabis or cannabis that belongs on the top shelf, shoulder to shoulder with the best in the world and the best of indoor,” says Sutton.

Challenges still exist, but they pale in comparison to the obstacles that American companies with an interest in adopting greener solutions persistently face, and in provinces like Alberta, an Alberta renewable energy surge is reshaping the opportunity set.

Although cannabis is legal in a number of states, it remains illegal federally, which means access to capital and regulatory clarity south of the border can be difficult to come by.

“Right now getting a new project built is expensive to do because you can’t get traditional bank loans,” says Canndescent CEO Adrian Sedlin, speaking by phone from California.

In retrofitting the company’s farm to accommodate a sizeable solar field, he struggled to secure investors, even as a solar-powered cannabis facility in Edmonton showcased similar potential.

“We spent over a year and a half trying to get it financed,” says Sedlin. “Finding someone was the hard part.”

Decriminalizing the drug would ultimately increase the supply of capital and lower the costs for innovative designs, something Sedlin says would help incentivize producers to switch to more effective and ecologically sound techniques.

Some analysts argue that selling renewable energy in Alberta could become a major growth avenue that benefits energy-intensive industries like cannabis cultivation.

Canndescent, however, is already there.

“We’re now harnessing the sun to reduce our reliance on fossil fuels and going to sustainable, or replenishable, energy sources, while leveraging the best and most efficient water practices,” says Sedlin. “It’s the right thing to do.”

 

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