Electricity demand sets record.
Harsh winter a record-setter for electricity use in Alberta
Alberta saw a larger yearover-year spike in peak electricity demand than any other jurisdiction in North America this winter, a phenomenon that is being attributed to abnormally cold temperatures coupled with rapid oilsands development.
“It’s been an extraordinary season, as far as growth,” said John Esaiw, director of forecasting for the Alberta Electric System Operator (AESO). “We haven’t seen growth like this, in a single season, in a long time.”
According to AESO data, the overall average demand for power in Alberta from Dec. 21, 2013 to March 20, 2014 was 9,264 MW — a record and up four per cent from the same period in 2012-2013.
The winter was so harsh it saw Alberta set a one-time high for electricity demand. During a cold snap on Dec. 2, usage of 11,139 MW was five per cent higher than Alberta’s previous peak of 10,609 MW set on Jan. 16, 2012, and represents the strongest peak growth in North America.
But it’s not just the weather that is behind the high demand for electricity. In its long-term forecast released in January, AESO predicts that strong investment in the oilsands and associated development will continue to drive GDP growth in Alberta for the next 20 years, at a rate of about 2.5 per cent annually.
That will likely translate into average annual electricity demand growth of 2.4 per cent until 2032, AESO predicts.
“I think it means we are a very strong economy, in the North American context,” Esaiw said. “The population growth related to the economic growth increases our demand.”
Even though Alberta’s electricity system is marketbased, the higher demand this winter didn’t result in significantly higher prices. The average wholesale electricity price this winter was $60.05/MW, lower than the five-year average of $62.30.
“Generally in Alberta, the prices are driven by the health of our fleet,” Esaiw said, referring to power infrastructure.
“We’ve had a very stable fleet over the winter — our power generation has been very healthy and there have been very few forced outages. That in combination with the health of the transmission system has meant fairly stable, reasonable prices over the course of the winter.”
In Alberta, consumers have the option of signing a fixed-term contract with an electricity retailer or paying the default regulated rate, which fluctuates with market prices.
Even small changes can help homeowners reduce their own electricity bills, said Dave Walton, director of Home Ideas with DirectEnergy.
Replacing a single incandescent light bulb with a CFL bulb can shave $6 per year off a bill, while shutting a home computer system off instead of leaving it in standby mode can result in up to $25 in annual cost savings.
“We are seeing an uptick in homeowners paying a lot more attention to energy efficiency in their homes,” Walton said.
“We’re trying to show people there are small fixes they can do, versus hiring a contractor to come in and do major changes.”