WHY ARE POWER PRICES SO DARN HIGH? in Alberta

[chuckChuck]

TransAlta going greener: Power generator to spend $3.5B on renewables by end of 2028

Calgary company plans to add 1,750 MW of clean power capacity within 5 years


The Canadian Press · Posted: Nov 21, 2023 11:19 AM CST | Last Updated: November 21

TransAlta wind turbines are shown at a wind farm near Pincher Creek, Alta., in a 2016 file photo. (Jeff McIntosh/The Canadian Press) Social Sharing

One of Alberta's largest power generators says more than two-thirds of its profits will come from renewable electricity production by 2028 — a major transformation for a company that once was one of the largest emitters of greenhouse gases in the country.
TransAlta Corp. announced an updated capital growth plan at its investor day on Tuesday which will see the company invest $3.5 billion in clean electricity generating and storage capacity by the end of 2028.
The Calgary-based company, which has brought online more than 800 megawatts of wind and solar power since 2021 alone, said it will add an additional 1,750 MW of clean power within the next five years.
Most of that new generation will be organic growth — developing wind and solar projects from scratch — though the company is also open to growth through mergers and acquisitions if the right opportunity comes along, said TransAlta CEO John Kousinioris in an interview.
"What's interesting about it is just the impact it will have on our company," Kousinioris said of the new growth projections.
"It will end up pushing us pretty firmly into a more contracted and greener generation company. By 2028 and, frankly, even earlier, somewhere in the range of 70 per cent of our EBITDA (earnings before interest, taxes, depreciation and amortization) will come from renewables."
Currently, approximately 40 per cent of TransAlta's EBITDA is attributable to renewable energy. The company is one of the largest producers of wind power in Canada, having grown its total renewable energy capacity from approximately 900 MW in 2000 to more than 2,900 MW in 2022.
But just a decade ago, the company's bread-and-butter was its large fleet of coal-fired power plants. TransAlta's move to convert those coal-fired plants to natural gas, at a cost of close to $300 million, was completed in late 2021 and has been widely hailed as a significant environmental accomplishment.
Shifting away from coal has reduced TransAlta's greenhouse gas emissions by 32 million tonnes annually — or 76 per cent — from what they were in 2005.
Not turning its back on natural gas

TransAlta is not turning its back on natural gas. The company recently announced a $658-million acquisition of Heartland Generation, a deal that adds 1,844 MW of gas-fired electricity production — mostly in Alberta — to the company's portfolio.
Kousinioris said natural gas-fired plants that can serve as a backup to renewables during periods of peak demand will still be necessary going forward, adding the company is looking at a handful of opportunities to "round out" its natural gas fleet.
But renewables are the future, he said, adding the "overwhelming majority" of TransAlta's growth in the coming years will be in the clean electricity space.
"We think that governments, investors, people are going to want a greener grid over time. We believe that the cost of carbon is going to continue to increase over time," Kousinioris said.
"We think that demand for renewables and storage will continue to increase and there'll be, over time, more and more policy supports for renewables."
In recent months, higher interest rates, inflation and supply chain issues have dogged renewable companies, taking some of the shine off the sector for investors. The S&P/TSX renewable energy and clean technology index, for example, is down nearly 23 per cent from the start of the year.
There is also growing global debate over the pace and cost of the energy transition. TransAlta's home province of Alberta, for example, is pushing back against Ottawa's proposed clean electricity regulations, saying a 2030 net-zero target for the sector is unachievable.
Alberta has also imposed a temporary moratorium on renewable energy development over concerns about impacts to agricultural land, system reliability and reclamation.
But Kousinioris said TransAlta remains bullish on the long-term outlook for renewable electricity.
"At the end of the day, it's all about our convictions. And when we think about our convictions, we don't look at any short-term turbulence," he said.
"We try to take a really long-term view."

?

[AlbertaFarmer5]

TransAlta going greener: Power generator to spend $3.5B on renewables by end of 2028

Calgary company plans to add 1,750 MW of clean power capacity within 5 years


The Canadian Press · Posted: Nov 21, 2023 11:19 AM CST | Last Updated: November 21

TransAlta wind turbines are shown at a wind farm near Pincher Creek, Alta., in a 2016 file photo. (Jeff McIntosh/The Canadian Press) Social Sharing

One of Alberta's largest power generators says more than two-thirds of its profits will come from renewable electricity production by 2028 — a major transformation for a company that once was one of the largest emitters of greenhouse gases in the country.
TransAlta Corp. announced an updated capital growth plan at its investor day on Tuesday which will see the company invest $3.5 billion in clean electricity generating and storage capacity by the end of 2028.
The Calgary-based company, which has brought online more than 800 megawatts of wind and solar power since 2021 alone, said it will add an additional 1,750 MW of clean power within the next five years.
Most of that new generation will be organic growth — developing wind and solar projects from scratch — though the company is also open to growth through mergers and acquisitions if the right opportunity comes along, said TransAlta CEO John Kousinioris in an interview.
"What's interesting about it is just the impact it will have on our company," Kousinioris said of the new growth projections.
"It will end up pushing us pretty firmly into a more contracted and greener generation company. By 2028 and, frankly, even earlier, somewhere in the range of 70 per cent of our EBITDA (earnings before interest, taxes, depreciation and amortization) will come from renewables."
Currently, approximately 40 per cent of TransAlta's EBITDA is attributable to renewable energy. The company is one of the largest producers of wind power in Canada, having grown its total renewable energy capacity from approximately 900 MW in 2000 to more than 2,900 MW in 2022.
But just a decade ago, the company's bread-and-butter was its large fleet of coal-fired power plants. TransAlta's move to convert those coal-fired plants to natural gas, at a cost of close to $300 million, was completed in late 2021 and has been widely hailed as a significant environmental accomplishment.
Shifting away from coal has reduced TransAlta's greenhouse gas emissions by 32 million tonnes annually — or 76 per cent — from what they were in 2005.
Not turning its back on natural gas

TransAlta is not turning its back on natural gas. The company recently announced a $658-million acquisition of Heartland Generation, a deal that adds 1,844 MW of gas-fired electricity production — mostly in Alberta — to the company's portfolio.
Kousinioris said natural gas-fired plants that can serve as a backup to renewables during periods of peak demand will still be necessary going forward, adding the company is looking at a handful of opportunities to "round out" its natural gas fleet.
But renewables are the future, he said, adding the "overwhelming majority" of TransAlta's growth in the coming years will be in the clean electricity space.
"We think that governments, investors, people are going to want a greener grid over time. We believe that the cost of carbon is going to continue to increase over time," Kousinioris said.
"We think that demand for renewables and storage will continue to increase and there'll be, over time, more and more policy supports for renewables."
In recent months, higher interest rates, inflation and supply chain issues have dogged renewable companies, taking some of the shine off the sector for investors. The S&P/TSX renewable energy and clean technology index, for example, is down nearly 23 per cent from the start of the year.
There is also growing global debate over the pace and cost of the energy transition. TransAlta's home province of Alberta, for example, is pushing back against Ottawa's proposed clean electricity regulations, saying a 2030 net-zero target for the sector is unachievable.
Alberta has also imposed a temporary moratorium on renewable energy development over concerns about impacts to agricultural land, system reliability and reclamation.
But Kousinioris said TransAlta remains bullish on the long-term outlook for renewable electricity.
"At the end of the day, it's all about our convictions. And when we think about our convictions, we don't look at any short-term turbulence," he said.
"We try to take a really long-term view."

?

The comedic timing is great on this one. The thread title is why are Alberta power prices so darn high. So Chuck posts an article about the expansion of solar and wind.

[chuckChuck]

Speaking of comedy, what does the future expansion of solar and wind by Transalta have to do with current high electricity prices in Alberta? LOL

Of course our resident troll knows more than Transalta about the future of renewables in Alberta! Too funny!

Your predictions of doom and gloom because of solar and wind seem completely detached from reality.

[AlbertaFarmer5]

Speaking of comedy, what does the future expansion of solar and wind by Transalta have to do with current high electricity prices in Alberta? LOL

Of course our resident troll knows more than Transalta about the future of renewables in Alberta! Too funny!

You sounds quite confident. Does that mean you have found some evidence to prove me wrong? Evidence of solar and wind not resulting in drastically higher prices for the consumer, anywhere in the world?

[chuckChuck]

Several experts from the University of Calgary and Alberta have indicated renewables increase supply and help keep prices down. They have never said that renewables are increasing the cost of electricity in Alberta. The biggest cost is due to utilities withholding supply and charging more. What more evidence do you need?

[AlbertaFarmer5]

Several experts from the University of Calgary and Alberta have indicated renewables increase supply and help keep prices down. They have never said that renewables are increasing the cost of electricity in Alberta. The biggest cost is due to utilities withholding supply and charging more. What more evidence do you need?

I think we have previously discussed what would constitute evidence of renewables not resulting in higher electricity costs. That would be finding even a single example of renewables resulting in cheaper cost to consumers. Not theoretical models, but real world examples.
If such evidence existed, I am confident that you would have presented it by now.

[Hamloc]

You sounds quite confident. Does that mean you have found some evidence to prove me wrong? Evidence of solar and wind not resulting in drastically higher prices for the consumer, anywhere in the world?

Transalta states that most of it profits will come from renewables in the future. I thought Chuck2’s problem was that power generators were making too much money off the back of the consumer because government wasn’t regulating power rates! So in Chuck2’s world it is ok to make profits off of renewables but not off of natural gas generated electricity!

[Hamloc]

One other thought. Transalta feels the cost of carbon is going to continue to increase over time. What if Trudeau and Guilbeault no longer have a job after the next election and Poilievre “axes the tax”? No doubt a part of the renewable profit picture is carbon credits, will they still exist under Poilievre?

[Guest]

I noticed Pierre is talking about axing the liberal tax increase now ,not axing the tax ?

[chuckChuck]

I noticed Pierre is talking about axing the liberal tax increase now ,not axing the tax ?

Yes and if he cuts the full carbon tax and prices don't drop significantly or go up because of higher oil prices anyway and then consumers don't get their climate rebate cheques they are not going to be very happy when they come out of it all with less money.

For all their bitching Alberta and Saskatchewan have their own carbon tax system on large emitters. So is Saskatchewan going to help everyone out by also cutting their PST on everything and fuel tax? No way! How do you spell hippo crits?

[chuckChuck]

One other thought. Transalta feels the cost of carbon is going to continue to increase over time. What if Trudeau and Guilbeault no longer have a job after the next election and Poilievre “axes the tax”? No doubt a part of the renewable profit picture is carbon credits, will they still exist under Poilievre?

Transalta looks at the long term which means beyond Crypto's reign. A week is a long time in politics. So don't count your chickens before they hatch.

Crypto has never been good at defending his policies. He doesn't like to answer hard questions, hides from the press and dismisses the media with a snarl. Qualities that don't play well as Prime Minister.

[wmoebis]

They can Axe the Tax or cut the cost of power and gas all they want but Corps will just find a way to increase distribution and Fees that will absorb any savings. Has anyone got the figures on how much these companies are making on all the other fees above and beyond actual consumption use?