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Together, we are modernizing Alberta’s electricity framework
The Restructured Energy Market (REM) Design, Optimal Transmission Planning (OTP) and Transmission Reinforcement Payment (TRP) mark one of the most significant transformations in the Alberta electricity system since deregulation.
Together, these three elements move Alberta away from an un-constrained transmission policy, align market operations, infrastructure planning and cost responsibility.
The new electricity framework ensures the AESO builds transmission only when system-wide benefits outweigh the investment, reflects congestion through market prices and requires suppliers to contribute to transmission system costs.
The result: a more efficient grid that supports affordability.
Our AESO team is leading a coordinated, disciplined implementation of these initiatives across divisions and teams within and outside of the AESO. As the transition progresses, we will share updates on key initiatives, progress and preparations with market participants for successful implementation.
The Restructured Energy Market (REM) sets how the market operates and how prices are formed.
REM preserves Alberta’s core market model - competitive, offer-based pricing - while addressing reliability and maintaining affordability as the province’s electricity grid continues to be transformed by new types of supply, new sources of demand and changing technology.
Changes to dispatch, settlement and pricing framework are intended to:
Over 230 organizations have contributed their expertise and insights in a highly collaborative and transparent REM design process and to ensure REM ISO rules are technically sufficient.
REM ISO rules were approved by government in March 2026, while REM design was published in summer 2025.
Optimal Transmission Planning (OTP) outlines how the AESO will plan a transmission system that is reliable and economically efficient.
OTP shifts Alberta away from a zero-congestion planning standard toward a cost-benefit approach to transmission development.
By allowing a managed level of congestion where it is more cost-effective, OTP is intended to:
This approach signals that transmission expansion will be guided by economic value rather than default planning standards.
The OTP Framework was released in January 2026.
Transmission Reinforcement Payment (TRP) is the mechanism for suppliers to contribute to transmission system costs.
TRP is a clear upfront cost signal of the impact of new supply on the transmission system.
This is intended to:
The TRP will support a more efficient transmission system.
Final TRP design is expected July 2026. Learn more on AESO Engage.
Benefit |
What It Means |
| Reliability | New services and operational tools to optimize energy dispatch when and where it is needed. |
| Cost Control and Affordability | More granular market prices which better reflect supply availability and allocation of grid costs to those who cause them. |
| Efficient Infrastructure | Improved market signals reduce unnecessary grid builds and optimize the system. |
| Investment Confidence | Accurate pricing and product signals attract long-term private investment. |
Implementing the new market design will require a significant industry-wide effort. The pace of change will be rapid, with tight timelines for the AESO and market participants to adapt systems and processes.
Robust IT systems are essential for a successful market transition, forming the backbone of the electricity market to ensure seamless operations, participant engagement and long-term market efficiency.
Market participant readiness is key to understanding the changes introduced by REM, OTP and TRP, ensuring operations, systems and processes remain compliant and operate effectively within the new market structure.
The Optimal Transmission Planning (OTP) Framework ensures Alberta’s transmission system is efficient, reliable and cost-effective. It prioritizes clear, measurable benefits, advancing economic projects only when they deliver measurable value to Albertans.
Alberta’s electricity market is undergoing significant change to enhance reliability and maintain affordability as the province’s electricity grid continues to be transformed by new types of supply, new sources of demand and changing technology.
The REM ISO rules are the foundation for Alberta’s transition to a modernized electricity market, providing the framework for the AESO and market participants to develop the processes and systems needed to implement the REM design.