Minister of Affordability and Utilities Nathan Neudorf has said Alberta’s restructured energy market will put affordability and reliability first, signalling a shift aimed at securing a stable power grid amid emerging industries and rapid growth in the province.In a new mandate letter from Premier Danielle Smith’s office to Neudorf’s ministry, Smith sets out a large list of energy priorities — from restructuring Alberta’s power market, to “aggressively fighting” Ottawa’s “Clean Electricity Regulation,” developing nuclear policy, supporting AI data infrastructure growth, and exploring interprovincial grid connections.Speaking to the Western Standard from Montana, where he traveled to meet with electricity leaders, innovators, and policymakers to promote Alberta’s business-friendly market, Neudorf said that the continuing energy restructuring and the orders in the premier’s mandate will ensure Alberta’s electricity grid remains dependable despite the ongoing challenges it faces.“The old energy-only market rewarded low prices — that worked when reliability was assumed, like under coal. But renewables are intermittent, and reliability has become a big issue worldwide,” Neudorf said, adding that “electricity has been an assumed benefit of the Western world for decades.”The Alberta government’s goal is to require energy generators to meet both affordability and reliability standards when bidding in the market.“Free power is a wonderful thing unless you can’t get power at all,” Neudorf said when asked about concerns from consumers about price increases due to the restructuring.“We want the most reliable power at the most affordable price — we need both, especially in hot summers and cold winters.”.Alberta government challenges federal net-zero electricity rules in court .Addressing concerns about electricity distribution fee discrepancies across the province — where rural customers often pay more than urban ones — Neudorf said the challenge stems from Alberta’s unique geography and the legacy of its rural electrification system, such as REAs (Rural Electrification Associations).“There’s a lot of math behind how we do rate calculations,” he said.“We have a unique history with how electricity was developed — getting to people's farms and residences, particularly in the north, where we have vast geography and a relatively small population. That math just means high distribution costs.”He stated that the overhaul of the province’s energy market, which for years rewarded the lowest-cost generation without considering reliability, was necessary as the province transitions toward a more diversified energy supply.“Many Albertans don’t know we have 40% renewables within our generating capacity already,” Neudorf said.“That number might be closer to 50% once you include rooftop and small-business solar. Now we need to make it work more efficiently.”He reiterated the province’s plans to continue fighting the federal government’s Clean Electricity Regulation, as stated in Smith’s letter, calling Ottawa’s policies unrealistic for a province without public utilities or hydroelectric capacity.“[We’ll] use every tool at our disposal, from constitutional challenges to strong negotiations every time we meet with the federal government,” he stated.“What the federal government fails to realize time and again is that Alberta is different. We don't have a public utility. It doesn't work the same way as other provinces and territories.”.Alberta's power grid sees significant improvements in reliability and affordability .He emphasized that Alberta’s privately operated electricity system, which he said involves roughly 350 companies, makes the province’s market distinct from those with publicly owned utilities.Neudorf also stated Alberta will continue relying on natural gas for baseload generation, arguing the province has “hundreds of years of reliable, low-emitting natural gas” reserves and can continue reducing emissions “without arbitrary timelines that cost Albertans billions before we need to spend it.”The minister also defended recent reforms to the province’s renewable project approval process, which have imposed new rules to protect farmland and “viewscapes” with regard to wind and solar projects while giving municipalities a higher legal standing before regulators in urban and rural development decisions.“Nobody wants a wind turbine the size of the Calgary Tower in a national park or in our mountain areas,” he said.“Municipalities throughout the province have a higher legal standing before our regulators than they did before. We help cover the fees for responsible, reasonable contributions to development decisions.”One of the new directives from Premier Smith has tasked Neudorf with working with Minister of Technology and Innovation Nate Glubish to fast-track AI data centres that can supply their own power — while ensuring Alberta’s grid remains stable.“AI data centres are kind of a new phenomenon, especially at the size and scale that they’re being built,” he said, emphasizing the high demand for this cutting-edge technology.“We think it’s the way of the future. It’s not going away anytime soon. We’re setting clear protections and guidelines, often around bringing your own power.“We think there’s a way to attract a whole new industry that very few in North America can actually do, because they don't have a private market structure like we do in Alberta — that’s using our Alberta advantage.”Neudorf also confirmed that work is underway on a nuclear energy roadmap for the province, with the government in ongoing talks with indigenous leaders and the public.“There’s a huge opportunity for success for Alberta,” he said.“[Nuclear is] being pursued globally because it can offer two key things: reliability and non-emitting power, and that does seem to be what much of the Western world is seeking.“We can play a role in that."
