Alberta proposes new legislation to modernize utilities, expand hydrogen use

Alberta is moving to future-proof its energy infrastructure with a sweeping new bill aimed at modernizing the province’s utility system and opening the door to hydrogen technologies.

The proposed legislation, Bill 52 — the Energy and Utilities Statutes Amendment Act, 2025 — was introduced on Thursday and, if passed, will prioritize reliability, affordability, and long-term sustainability for Albertans.

With demand for energy rising alongside Alberta’s growing population and economy, the bill proposes significant changes to both the electricity and natural gas systems.

The legislation would allow hydrogen to be blended into Alberta’s natural gas distribution for residential and commercial heating, marking a major step forward for clean energy innovation in the province.

“Albertans need to know they have reliable and affordable utilities to provide for their families and chase their dreams,” said Nathan Neudorf, Minister of Affordability and Utilities.

“The changes we’re making will drive new investment and fuel Albertans to pursue a bright, successful future.”

Alberta, already Canada’s largest hydrogen producer, is positioning itself as a hub for hydrogen innovation.

The new legislative framework is designed to support emerging technologies while ensuring public safety and system reliability. Under the proposed amendments, only those receiving hydrogen-blended gas will pay for any added costs, and utility providers will need to secure community support before implementing blending projects.

The bill also targets critical upgrades to Alberta’s electricity market.

Changes would transition the province to a day-ahead reliability market, a move aimed at boosting power availability and reducing grid alert risks. Updates to transmission policies are expected to improve cost efficiency by making better use of existing infrastructure and assigning costs based on usage, rather than spreading them broadly across all consumers.

“We’re shaping a utility system built to last by preserving investment, innovation and open competition,” said Chantelle de Jonge, parliamentary secretary for Affordability and Utilities.

“We’re tackling volatile prices and grid stability so Alberta’s energy future is resilient and full of opportunity.”

Additional amendments in the bill include expanding the Alberta Petroleum Marketing Commission board from seven to 13 directors to strengthen governance and enhance oversight of programs such as the bitumen royalty in-kind initiative.