THE VALUE OF FLEXIBLE GAS GENERATION IN THE ALBERTA ELECTRICITY MARKET

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The Alberta electricity market is going through a major transition. Plans to phase out coal energy, to introduce carbon tax, and to significantly increase wind and solar power have made IPPs and utilities nervous. The uncertainty has blocked investments in new generation assets – despite the predicted 2.5 percent annual growth in electricity demand for the next 20 years (AESO; Alberta Electric System Operator).

One thing is for sure: the volatility of electricity prices will increase in Alberta. Although largely unknown, this can be an opportunity for IPPs and utilities. If the generation technology is right, price volatility can actually be a trigger to invest.




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   Matti Rautkivi

   Sales & Marketing Director,
   Wärtsilä Energy Solutions
   
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