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    Capacity market transition

    On November 23, 2016 the Government of Alberta (GoA) announced its endorsement of the AESO’s recommendation to transition from an energy market to a new framework that includes an energy market and a capacity market.

    The AESO recommended a capacity market for the following reasons:

    • Ensures reliability as Alberta’s electricity system evolves
    • Increases stability of prices
    • Provides greater revenue certainty for generators
    • Maintains competitive market forces and drives innovation and cost discipline
    • Supports implementation of Climate Leadership Plan initiatives and is adaptable to future policy evolution

    The AESO will ensure this transition supports other Climate Leadership Plan initiatives; namely the Renewable Electricity Program and the phase-out of emissions from coal-fired generation by 2030.

    The AESO is responsible for designing and implementing the capacity market. This process is expected to take three years and a capacity market is anticipated to be in place by 2021.

    To learn more about our stakeholder engagement activities, click here.

    Questions and answers

    For answers to common questions about Alberta's transition to a capacity market, view our Q&A document.

    Recommendation paper

    Additional resources