Trystan Casey
Calgary's electricity has a long and varied history. The city's role in Canada's energy industry is broad, with oil first being discovered in the city in 1902. The first electric power plants were built soon after, powered by both coal and water. In 1914, a major oil strike in nearby Turner Valley led to a boom in oil production, with 500 oil companies being formed within 24 hours. However, the outbreak of World War I brought investment to a halt, and it wasn't until the 1990s that Calgary's energy market became competitive again, with residents able to choose from several retailers. Today, Calgary's electricity primarily comes from natural gas, with coal-fired power plants being phased out. The city has committed to purchasing 100% of its electricity from renewable sources, with wind, solar, and hydro playing an increasingly important role in the province's energy mix.
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What You'll Learn
Calgary's electricity retailers and producers
Direct Energy Regulated Services is the natural gas retailer in Calgary. Natural gas is expected to remain the dominant source of electricity generation in Alberta for years to come, currently providing nearly three-quarters of the province's electricity. Alberta's electricity market is deregulated, and prices can change in real-time in response to market dynamics.
Other retailers and producers include dozens of niche energy companies, such as ATCOenergy, Just Energy Alberta, and EPCOR. Alberta's Micro-Generation Regulation allows residents to generate electricity from renewable or alternative energy sources and sell the surplus to the Alberta grid in exchange for energy credits, with a limit of 5 MW of installed capacity. As of May 2024, microgeneration capacity totalled 258 MW across more than 20,000 sites, with solar accounting for approximately 95% of total capacity.
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The shift from coal to renewable energy
Calgary's electricity has historically been generated by coal and natural gas. In 2014, more than half of Alberta's electricity was produced from 18 coal-fired generators. However, there has been a significant shift towards renewable energy sources in recent years. This transition is driven by the phase-out of coal-fired power plants and the province's abundance of renewable energy resources.
Alberta's renewable energy landscape is diverse, with wind, solar, and hydro playing a significant role in its energy mix. In 2021, renewables accounted for 15% of the province's electricity production, with wind power contributing 9%, hydro at 3%, and bioenergy at 2%. This shift towards renewables is expected to continue, with Alberta set to retire coal power by 2023, ahead of the initially scheduled 2030 deadline.
Calgary's electricity provider, ENMAX, has also played a crucial role in the city's transition to renewable energy. In 2009, the city decided to purchase 100% of its electricity from renewable sources, and this commitment is set to continue beyond the existing agreement with ENMAX, which ends in 2026. The city's efforts have yielded significant results, with over 21,900 tonnes of CO2e avoided through on-site renewable electricity generation and purchases for operating city-owned buildings.
While natural gas continues to be a dominant source of electricity generation in Alberta, the province is experiencing a solar power boom. The capacity of wind turbines and solar panels has been improving, with newer wind turbines generating more electricity and innovative double-sided solar panels capturing reflected light from the ground, boosting efficiency during winter months. Alberta's Micro-Generation Regulation further supports the expansion of renewable energy by allowing residents to generate electricity from renewable sources and sell the surplus to the Alberta grid in exchange for energy credits.
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Calgary's electricity rates
The best-known electricity provider in Calgary is the city's own ENMAX utility company. In 2023, the average ENMAX Rate of Last Resort (RoLR) rate in Calgary was 19.597 ¢/kWh, resulting in an average household electricity bill of $114. This does not include distributor, transmission, or administrative fees, which are also factored into energy bills.
There are several other retailers in the city, including Direct Energy Regulated Services, which offers fixed-rate electricity plans. These plans offer a single, guaranteed rate that won't change, protecting consumers from market spikes. Variable or floating-rate contracts are also available, which offer the lowest possible rates but depend on market forces.
Regulated electricity retailers in Calgary have a set rate for a two-year term, which can only be adjusted by 10% at the end of the term. This helps keep the RoLR price stable, affordable, and predictable. In August 2023, the Regulated Rate Option (RRO) peaked at an average of ¢31.486/kWh, but prices lowered in 2024, with the RRO in October being ¢9.264/kWh.
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The City of Calgary Electric System
Calgary's electricity is generated by a mix of sources, with natural gas being the dominant source of electricity generation in the province. In 2021, 63% of Alberta's electricity was generated from natural gas, while coal accounted for 22% and renewables made up the remaining 15%. The City of Calgary Electric System has been in operation since 1905, and the city has played a significant role in Canada's energy industry.
The City of Calgary made a commitment in 2009 to transition to 100% renewable energy sources for its electricity needs, and this commitment remains in place beyond the current agreement with ENMAX, which ends in 2026. ENMAX Energy is the Rate of Last Resort (ROLR) provider for electricity in Calgary, and its rates are very competitive. The average ENMAX RORL rate in Calgary for 2023 was 19.597 ¢/kWh, resulting in an average household electricity bill of $114, excluding additional fees.
Calgary's electricity market is deregulated, allowing customers to purchase electricity services from a retailer of their choice. The city has had several electricity retailers since the 1990s, making its electricity rates competitive. The shift from coal-fired power plants to renewable energy sources has been a driving force in the province, with Alberta set to retire coal power by 2023, ahead of the previously scheduled 2030 deadline.
Alberta's Micro-Generation Regulation allows residents to generate electricity from renewable sources and sell the surplus to the Alberta grid in exchange for energy credits, with solar power accounting for approximately 95% of total capacity. The province has witnessed a significant increase in wind and solar generation, with more than 2,000 MW of new projects added between 2019 and 2023. This transition to renewable energy sources has resulted in a significant reduction in carbon emissions, with over 21,900 tonnes of CO2e avoided through on-site and off-site renewable electricity generation for City-owned buildings in 2022.
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Calgary's electricity generation capacity
In recent years, Calgary's electricity generation has transitioned away from coal-fired power plants. In 2021, 85% of electricity in Alberta was generated from fossil fuels, with natural gas contributing 63% and coal accounting for 22%. However, Alberta has taken significant steps towards renewable energy sources. The province's climate change legislation targeted the phase-out of coal-fired generation by 2030, and this goal was achieved ahead of schedule in 2023. As of 2021, renewable sources, including wind (9%), hydro (3%), and bioenergy (2%), contributed 15% to Alberta's electricity generation.
Calgary's electricity market offers a competitive landscape with various retailers and producers. The city's well-known electricity provider, ENMAX, serves as the Rate of Last Resort (ROLR) provider. The average ENMAX RORL rate in Calgary for 2023 was 19.597 ¢/kWh, resulting in an average household electricity bill of approximately $114, excluding additional fees.
Looking forward, Calgary and Alberta are expected to continue transitioning towards renewable energy sources. The City of Calgary made a commitment in 2009 to source 100% of its electricity from renewable sources, even beyond the existing agreement with ENMAX. This commitment has led to significant CO2 emission reductions. Additionally, Alberta's Micro-Generation Regulation encourages residents to generate electricity from renewable sources and sell the surplus to the Alberta grid, fostering a distributed energy generation model.
Overall, Calgary's electricity generation capacity has undergone a transformation, moving away from coal and towards natural gas and renewable sources. The city and province are committed to further integrating renewable energy sources into their electricity generation capacity, aiming for a more sustainable future.
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Frequently asked questions
Calgary's electricity comes mainly from natural gas.
The best-known electricity provider in Calgary is the city's own ENMAX utility company.
The average household electricity bill in Calgary is $114, not including distributor, transmission, and administrative fees.
The average Albertan household uses roughly 7,200 kWh of electricity annually, which amounts to 600 kWh per month.
In 2021, 85% of electricity in Alberta was generated from fossil fuels, with 63% from natural gas and 22% from coal.
