Alberta Takes Major Step Toward New Future-Ready Electricity Market

CALGARY, Alberta, Aug. 27, 2025 (GLOBE NEWSWIRE) -- The Alberta Electric System Operator (AESO) today unveiled the final design for the province’s Restructured Energy Market (REM). The REM is a modernized framework for Alberta’s electricity market that will strengthen reliability, improve affordability, and attract private investment to meet future energy needs.

Following direction from the Government of Alberta and more than two years of industry engagement, the REM represents a strategic redesign of Alberta’s existing energy-only market. The new design includes enhanced operational services, improved price signals, and cost-sharing mechanisms to support the province’s evolving energy landscape.

“Our new market design represents a significant milestone in Alberta’s electricity sector,” said Aaron Engen, AESO President and CEO. “It reflects our shared commitment to a reliable, affordable, and investment-ready market that serves Albertans today and prepares for the future.”

The new REM design strikes a balance between diverse priorities and perspectives to deliver a reasonable design that is in the best interest of all Albertans.

“I sincerely thank AESO staff, industry stakeholders, and all contributors whose expertise made this possible,” added Mr. Engen.

Reliable, Affordable, and Investment-Ready

The drivers of the REM address the transformation of Alberta’s electricity grid—propelled by new types of supply, new sources of demand and changing technology—by:

Enhancing grid reliability through new operational tools and services to manage a more complex and dynamic system;
Improving affordability for consumers by fostering greater market competition, pricing guardrails, and shared reliability costs; and
Attracting private investment through advanced pricing mechanisms and stronger signals for where and when to build new infrastructure.

The new design introduces tools such as scarcity pricing, Locational Marginal Pricing (LMP), enhanced reliability operations, and new reserve products—all aimed at preparing Alberta’s grid for increasing demand and a more diverse generation mix.

“The REM is a smart, forward-looking solution that delivers real benefits for Albertans,” said the Honourable Nathan Neudorf, Alberta Minister of Affordability and Utilities. “It supports competition, ensures long-term grid reliability, and protects consumers through strong market design. I commend the AESO and all stakeholders for shaping a market built to last, and look forward to continuing our work as we move towards initiating implementation in mid-2027.”

Extensive Consultation

Development of the REM design began in summer 2023 and concluded in summer 2025, supported by the most comprehensive stakeholder engagement in the AESO’s history. Over 230 organizations contributed their expertise and insights helping to identify priorities like clear investment signals, balanced market power protections, price transparency, and fair cost sharing. Organizations included industry stakeholders and associations, consumer groups, and technical experts whose engagement and feedback helped shape a design that reflects Alberta’s needs and priorities.

Industry Perspectives

“This represents a significant milestone in the restructuring of Alberta’s electricity market. We’ve valued the opportunity to work alongside the AESO and other industry stakeholders through this collaborative process. Access to affordable, reliable power underpins Alberta’s ability to attract investment, create jobs, and keep our industries competitive in a global market. As a leading voice for industrial consumers, we remain committed to working toward a sustainable market design that prioritizes affordability, drives competitiveness, and delivers long-term benefits for all Albertans.”

— Megan Gill, Executive Director, Alberta Direct Connect Consumer Association

“The REM is modernizing Alberta's electricity market by unlocking signals for energy storage resources. By bringing in best practices from other electricity markets such as LMP, ramping reserves, and stronger price fidelity for flexible supply and demand, the qualities of energy storage will be more efficiently leveraged to help Alberta produce affordable and reliable electricity.”

— Justin Rangooni, President & CEO, Energy Storage Canada

“We thank the AESO for its extensive engagement with industry stakeholders in shaping the new REM design. The consultation process was open, collaborative, and constructive, ensuring that a broad range of perspectives were considered. We look forward to reviewing the details of the REM and to continued engagement with the AESO as the focus shifts to rule development and implementation of the new market.”

— Mark Poweska, President and CEO, ENMAX

“The REM high level design is the culmination of extensive work and collaboration undertaken by the Government, AESO, and industry stakeholders over more than a year. It is a step forward in Alberta’s market design to meet the challenges of operating a reliable electric system that is decarbonizing and integrating unprecedented levels of new renewable generation supply. Thank you for the commitment from the AESO to work collaboratively with industry on the opportunities and challenges facing the electricity sector in Alberta.”

— John Kousinioris, President, Chief Executive Officer, and Corporate Director, TransAlta Corporation

What’s Next

The AESO will begin stakeholder engagement on related market and operational ISO rules and implementation details in fall 2025, while continuing work on renewing the framework for building and optimizing the transmission system.

AESO Media Relations:

media@aeso.ca

Additional information and documents:

About the AESO
The Alberta Electric System Operator is responsible for the safe, reliable, and economic planning and operation of the Alberta Interconnected Electric System. We provide open and non-discriminatory access to Alberta’s interconnected power grid, and we also facilitate Alberta’s competitive wholesale electricity market.

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