Federal-Alberta MOU opens door to stronger interprovincial power grid

New Clean Prosperity report says political alignment on electricity interties must now be matched with implementation plan

Strengthening interprovincial transmission between Alberta and its neighbouring provinces could enhance grid reliability, lower costs for consumers, and accelerate decarbonization, says a new Clean Prosperity report released today. 

The recently signed federal-Alberta memorandum of understanding (MOU) commits both governments to building a strong, integrated interprovincial transmission grid, representing the strongest political alignment on interties in decades. But the MOU stops short of a clear implementation plan. 

“Alberta and other provinces are all facing rising demand for electricity and serious concerns about affordability,” said Emma Dizon, report co-author and manager of Western Canada research and outreach for Clean Prosperity. “We have a window right now to articulate and implement a plan for strengthening interprovincial electricity transmission that would improve reliability and security while lowering costs for consumers.”

“We have a window right now to articulate and implement a plan for strengthening interprovincial electricity transmission that would improve reliability and security while lowering costs for consumers.”

Emma Dizon, report co-author and manager of Western Canada research and outreach, Clean Prosperity

To turn the MOU’s commitments into action, the report recommends that governments develop a clear implementation plan by April 1, 2026, built around three priorities:

  1. Collaboration: establish formal, transmission-specific working groups among Western provinces, system operators, utilities, and Indigenous communities, with a limited federal role in the event that provincial coordination breaks down.
  1. Quantifying the benefits: expand Alberta’s transmission planning framework by requiring the Alberta Electric System Operator to assess the full system-wide costs and benefits of new interprovincial interties, with public reporting.
  1. Funding mobilization: the federal government should accelerate projects by deploying concessional financing through the Canada Infrastructure Bank, and increasing the Clean Electricity Investment Tax Credit for intertie projects.

“Interprovincial transmission offers a rare opportunity to strengthen the electricity system in ways that benefit consumers, the economy, and the climate,” said Joel Krupa, report co-author, and senior advisor, energy and climate policy at Clean Prosperity. “With a concrete plan, clear roles, and dedicated funding, Alberta has the opportunity to strengthen its electricity system for decades to come.”

Photo credit: Don White from Getty Images Signature

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