Market Pathways

Key Dates

Dec. 20, 2023 | EWG Summary and Straw Market Models Comments Posted

October - November 2023 | Executive Working Group Sprint Pre-Read Materials


Objective

Identify market pathways that inform the future evolution of Alberta’s market design considering transformational changes expected on the Alberta Interconnected Electric System (AIES).

Purpose

Identify market pathways, in collaboration with stakeholders, that inform the future evolution of Alberta’s market design considering transformational changes expected on the AIES. This priority initiative is intended to evaluate the sustainability of the current market design and provide recommendations for change. A key focus will be on how to achieve reliability and affordability through competition.

Collaborative Engagement Approach

Engage stakeholders early on to effectively collaborate on issues and options for market design. As part of our initial thoughts, the AESO is exploring a targeted workgroup approach that could include meeting frequently to progress through identified issues, a wide-range of options and potential solutions. To ensure transparency and support a collaborative approach, the AESO is considering periodic check-ins with the wider industry on workgroup progress, which is intended to provide opportunities to gather the broader stakeholder community's input and understand their perspectives on issues, options and potential solutions. Targeted workgroup membership would ideally include balanced industry representation to ensure a wide spectrum of perspectives is included at this focused discussion level. More details will be shared on our proposed approach with the release of our Market Pathways Primer document the week of July 31, 2023.

Proposed phased approach and associated engagement timeline:

Q3 2023
Phase I: Scoping of Initiative and Issue Identification
Q3 2023 - Q1 2024
Phase II: Determination of Targeted Workgroup; Evaluation of Issues, Options, Potential Solutions and Timing
Q1 2024 - Q2 2024
Phase III: Pathways Identification and Recommendations
Q3 2024 OnwardsPhase IV: Implementation


Background

Alberta’s electricity market structure faces new and increasing challenges to support a reliable and affordable electricity system. The AESO has noted key operational and reliability challenges occurring as a result of this transformation that test the sustainability of the existing market design. Building on the Net-Zero Pathways Report and the Reliability Requirements Roadmap – Market Pathways is the next stage in evaluating the sustainability of the existing market structure.

Key Dates

Dec. 20, 2023 | EWG Summary and Straw Market Models Comments Posted

October - November 2023 | Executive Working Group Sprint Pre-Read Materials


Objective

Identify market pathways that inform the future evolution of Alberta’s market design considering transformational changes expected on the Alberta Interconnected Electric System (AIES).

Purpose

Identify market pathways, in collaboration with stakeholders, that inform the future evolution of Alberta’s market design considering transformational changes expected on the AIES. This priority initiative is intended to evaluate the sustainability of the current market design and provide recommendations for change. A key focus will be on how to achieve reliability and affordability through competition.

Collaborative Engagement Approach

Engage stakeholders early on to effectively collaborate on issues and options for market design. As part of our initial thoughts, the AESO is exploring a targeted workgroup approach that could include meeting frequently to progress through identified issues, a wide-range of options and potential solutions. To ensure transparency and support a collaborative approach, the AESO is considering periodic check-ins with the wider industry on workgroup progress, which is intended to provide opportunities to gather the broader stakeholder community's input and understand their perspectives on issues, options and potential solutions. Targeted workgroup membership would ideally include balanced industry representation to ensure a wide spectrum of perspectives is included at this focused discussion level. More details will be shared on our proposed approach with the release of our Market Pathways Primer document the week of July 31, 2023.

Proposed phased approach and associated engagement timeline:

Q3 2023
Phase I: Scoping of Initiative and Issue Identification
Q3 2023 - Q1 2024
Phase II: Determination of Targeted Workgroup; Evaluation of Issues, Options, Potential Solutions and Timing
Q1 2024 - Q2 2024
Phase III: Pathways Identification and Recommendations
Q3 2024 OnwardsPhase IV: Implementation


Background

Alberta’s electricity market structure faces new and increasing challenges to support a reliable and affordable electricity system. The AESO has noted key operational and reliability challenges occurring as a result of this transformation that test the sustainability of the existing market design. Building on the Net-Zero Pathways Report and the Reliability Requirements Roadmap – Market Pathways is the next stage in evaluating the sustainability of the existing market structure.

  • EWG Summary and Straw Market Models | Request for Feedback

    CLOSED: This feedback period has concluded.

    Purpose

    At the AESO Stakeholder Symposium on November 30, 2023, we will be sharing a high-level Summary from the EWG with all stakeholders. We invite all interested stakeholders to provide written feedback to share their insights and perspectives on the Market Pathways EWG Summary and on which straw market model overall stakeholders feel best achieves the four objectives.

    The four objectives:

    1. A Reliable Electric Grid
    2. Affordable Electricity for Consumers
    3. Decarbonization by 2050 and Related Policy Objectives
    4. Reasonable and Realistic Implementation

    The four objectives have been developed based on:

    • AESO’s mandate and experience planning and operating the electricity system and designing, implementing and operating the wholesale electricity and ancillary services markets
    • AESO’s observations of public discussion from both stakeholders and the Government of Alberta related to the current policy landscape
    • EWG Input

    The objectives will serve to focus the report to be submitted to the Minister of Affordability and Utilities by February 1, 2024

    Throughout the EWG Sprint sessions, the straw market models have been broadly defined as follows:

    • Energy-Only (Day Ahead or Real Time): Market model where supply type, size, and timing are determined by private sector investors without direction from a central agency, as determined by expectation of market conditions (for all products).
    • Capacity Contract: A competitive auction that procures capacity to meet reliability targets. Typically, auctions are held at regular intervals and contract lengths are short duration (6 months – 5 years).
    • Integrated Planning: Long Term Contracts that can be issued by a central agency (e.g., Ontario ISO) or a utility (e.g., BC Hydro energy calls) as part of their integrated resource plan to procure private sector investment through directed investment (type, size, location determined as part of an overall system plan).

    Relevant Materials

    Request for Feedback

    Interested stakeholders have an opportunity to provide written feedback to share their insights and perspectives by December 14, 2023.

  • Stakeholder Session | Industry Update October 12, 2023

    CLOSED: This session has concluded.

    The AESO hosted a virtual Industry update on October 12, 2023 from 9:30 a.m. to 12:00 p.m.

    Purpose

    The purpose of this information session was to outline how the AESO is adapting its Market Pathways engagement plan to better align with other key initiatives.

    Materials

    Can be found under AESO Materials the right-hand side of the page.

  • Written Consultation | Market Pathways Primer Aug. 1 - Sept. 5, 2023

    CLOSED: This consultation has concluded.

    Purpose

    The Market Pathways Primer is intended to provide information to stakeholders on the system/market issues and priorities identified to date by the AESO, as well as on the AESO’s proposed Market Pathways process and engagement approach. The AESO thanks stakeholders who provided feedback on these key pieces to set the foundation for and to inform the Market Pathways initiative going forward.

    Thank you in advance for your time and for your contribution to Market Pathways and the collective work that needs to be done to meet the future needs of Alberta’s electricity system.

    Market Pathways Primer Materials

    Can be found in the AESO Materials section.

Page last updated: 09 Feb 2024, 04:46 PM