AB’s reaction to ‘draft’ Clean Electricity Regulations is unnecessary tantrum

Danielle Smith: "We just know that [the] 2035 target is not achievable."

The federal government released the draft version of the CER, a set of rules for transitioning Canada's electricity grid to net-zero starting in 2035. Facilities that generate electricity from natural gas (or other carbon-emitting sources) would have to find ways to reduce emissions, whether that's carbon capture and storage or whatever.

Alberta has said it supports the implementation of a carbon-neutral power grid, but only by 2050. The province says it does not have enough non-emitting electricity sources such as hydro and nuclear available, and won't have time to build them by 2035. But, when you look at the details of CER, the 2035 date is just the starting point. Exceptions in the draft allow some carbon-emitting facilities to continue running until 2045. There is a 20-year grace period for recently built and new facilities. A plant built in 2015 or prior would be subject to the standard in 2035. But one built in 2024 could operate until 2044 unconstrained. There will be no universal switch in 2035.

There are other exemptions in the draft. "Peaker" power plants can run up to 450 hours per year to support peak power when renewables can’t meet demand. Units with a capacity of less than 25 megawatts. Small and remote communities without affordable options to use non-emitting electricity generation. And emergency circumstances. This means that a majority of the gas-fired generation would not be subject to the regulations as of 2035. By 2040, roughly half of the natural gas generation would be subject to the rules. The draft signals generators that they need to reduce, and give them time to scale down their emissions well into the 2040s. That's with the draft regulations in their current form. There could be changes. Ottawa would consider making the 20-year grace period even longer in order to address Alberta's concerns.

The CER’s goal is to transition Canada's electricity grid to net-zero by 2050, and through electrifying parts of the economy that currently rely on fossil fuels, such as vehicles and heating. Switching from fossil fuels to electricity won't have much effect on emissions, however, if that electricity is generated by burning fossil fuels. That's why CER tries to decarbonize the electrical grid. Alberta gets the majority of its electricity from natural gas. Alberta argues current technology will not allow for the targets, it would lead to affordability and reliability issues. But it depends on what Capital Power, Enmax, TransAlta and other generators decide to build in the next few decades. So it is possible that Alberta should be spending less time fighting Ottawa on the target and more time getting the producers to get greener.