The Alberta Wire – February 6, 2018

The Alberta market saw the highest monthly settle in January since June 2015 at $40.83/MWh. Market conditions are expected to continue to put upward pressure on price as more coal is mothballed and plants are taken offline to be converted to gas. The week settled 2% lower than last week at $32.25/MWh. Forward prices came down slightly as the market became familiar with the first draft of the Comprehensive Market Design.
AECO prices were back down under $2/GJ, settling at $1.97/GJ this week. Despite the continued cold, storage remains above the five year average as there is no shortage of supply.
The AESO announced REP Rounds 2 and 3 will run parallel to each other, with projects being awarded in December 2018. Round 2 is for 300 MW and will require an Indigenous equity ownership requirement. Round 3 will mimic Round 1, with a 400 MW target.