A Smart Electricity Policy for AlbertaEnhancing the Alberta Advantage

Publication - March 1, 2001 - By Andrew Pape-Salmon

In this initial concept paper, the Pembina Institute describes a new approach to electricity sector planning in Alberta. The proposed Smart Electricity Policy for Alberta addresses the current pricing and supply crisis while also ensuring the development of a stable and sustainable electricity market for the future. It shows how the provincial government could take a leadership role in managing an electricity sector that would be competitive, and whose supply would be secure, cost-effective and environmentally efficient. This approach would help alleviate the current electricity crisis at a fraction of the cost of the recent multi-billion dollar rebates.

The policy proposals focus on conserving energy and improving energy efficiency, and on increasing the use of low-impact renewable energy. These new policies would protect consumers from various risks, including price and resource instability, and human health and environmental degradation. They also increase diversity of electricity supply, increase competition and promote regional economic development.

The six new initiatives being proposed are:

  1. an Alberta Energy Efficiency Office,
  2. an Alberta Energy Efficiency Revolving Fund,
  3. a performance-based mechanism for retailers to facilitate energy efficiency,
  4. a renewable energy portfolio standard,
  5. a production incentive for low-impact renewable energy, and
  6. a net metering program for small-scale, low impact renewable energy sources

The costs of these six policy proposals to Alberta taxpayers are estimated at a maximum of $170 million in the first year. Savings to Alberta consumers are estimated at up to $500 million dollars per year.

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