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Restructured Energy Market (REM) – A Preliminary Outlook

Key takeaways from the report include the following:

  • The REM reforms by themselves do not reshape future capacity on a large scale. The biggest uncertainties for Alberta’s future capacity mix come from CER enforcement and support for renewable capacity.
  • Negative prices are expected between 2027 and 2035. The value of TIER credits and the High-Performance Benchmark set an implicit price floor, disincentivizing negative prices post-2035 in all REM scenarios.
  • In the REM Conservative Policy scenario, a slower renewable capacity expansion and increased baseload result in low price volatility over the long term.

If you have any questions or would like to learn more about our ERCOT coverage, please contact Shawn Bishop.

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