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The Impact of Carbon Pricing on the Electricity Grid

with Brady Yauch and Kris Aksomitis

The move to reduce greenhouse gas emissions in the electricity sector is expected to increase dramatically in the coming decade, largely as a result of the federal government’s push for more aggressive carbon pricing policies. How that policy impacts Canada’s electricity grid will vary by province due to the vast differences in generating fleet, market structure, and provincial programs introduced in response to the federally imposed carbon price.

Ontario and Alberta are the only two fully competitive wholesale electricity markets in Canada. In both provinces, the price of electricity is established through a competitive auction process, where market participants compete for dispatch with marginal cost offers. The introduction of a carbon price will fundamentally change both the supply curve and the price signal provided to consumers. It is also expected to provide new investment opportunities for renewable technologies, including storage, wind and solar facilities.

The electricity markets in both Ontario and Alberta will react differently to carbon pricing policy. We discuss these impacts, among other important changes taking place in these competitive electricity markets.

 

Resources

See the slides in PDF format:  TABE Webinar – Carbon Pricing

 

About the Speakers

Brady Yauch
Manager, Markets and Regulatory,
Power Advisory

Kris Aksomitis
Director,
Power Advisory