A new 130-kilometre transmission line is being built in central Alberta to strengthen the power grid and be ready for new renewable energy generation.
The Central East Transfer Out Transmission Project will see a new double-circuit 240-kilovolt transmission line built between AltaLink's Gaetz Substation at the east edge of Red Deer to a substation in the Alix area.
AltaLink and ATCO will own and build the transmission line that will add 750-megawatts of electricity capacity to Alberta's grid. Construction is expected to start this fall and it will be in service by 2026.
Alberta Electric System Operator, which oversees the province's power grid, says the upgrade is necessary to relieve congestion and distribution issues in central and southern Alberta. It was reviewed and approved by the Alberta Utilities Commission in 2021.
"Adding new transmission infrastructure will help to alleviate grid congestion and unlock the capacity for new renewable energy sources to come online to reduce the province's GHG (greenhouse gas) emissions," says a Thursday news release.
AESO undertook a "reaffirmation study" as recently as January to ensure that the need for the line was still there. That analysis showed that the anticipated congestion on the power line as new generation comes online would exceed acceptable thresholds, even if the Sheerness and Battle River power generators were off line.
In the study area, which covers a large portion of the east side of the province from Vegreville to Medicine Hat, including east central Alberta, AESO estimated 3,000 megawatts of renewable energy could come on line by 2026.
The results of the study confirmed the results of two similar reviews in 2022 and determined that the Central East project is "an effective solution in relieving the anticipated congestion."
AltaLink vice-president of external engagement Scott Schreiner said AESO determines the need and following Alberta Utilities Commission approval companies such as AltaLink and ATCO are directed to find routes, design and build the necessary infrastructure.
Schreiner said that when completed the power line will provide improved reliability. "It reinforces the existing transmission system in an area that has been growing," he said.
The upgrade allows access to new renewable power generation that is expected to come on line. "Right now, the available capacity isn't there to add significant amounts of new renewable generation."
As construction gets underway, updates will be sent to area residents letting them know what is going on.
Canada Infrastructure Bank (CIB) announced on Thursday it would provide a $283.5-million loan to underwrite part of the $500-milion project. The financing deal reduces AltaLink's and ATCO's costs, which is expected to save Alberta taxpayers $135 million over the 30-year loan term. The deal requires Alberta Utilities Commission approval and meet customary closing conditions.
The bank says it is its first investment in energy transmission under its $10-billion Clean Power priority sector, "which is dedicated to addressing financing gaps in new projects such as renewables, transmission, district energy systems and energy storage."
Alberta Affordability and Utilities Minister Nathan Neudorf said in a statement that the "collaboration is necessary for our grid to be prepared to meet the province's future needs. As Alberta's government works toward modernizing our grid, support from industry and the CIB is essential to these goals."
AltaLink president and CEO Gary Hart said that "with the support of CIB, we are reducing the cost to our customers for this important electrical infrastructure, while strengthening the system and increasing access to nrewable energy sources."