Alberta Rewires the Rules

Federal pilots test whether smarter pricing can curb demand as Canada’s power use threatens to soar

24 Feb 2026

At first glance C$3m is a modest sum. Yet Ottawa’s latest investment in Alberta’s electricity grid hints at a larger shift. Through its Energy Innovation Program, Natural Resources Canada is backing a clutch of smart-grid pilots in the province. EPCOR, the Alberta Energy Efficiency Alliance and The Transition Accelerator will test new ways to manage demand, modernise pricing and bolster reliability. The announcement was made by Corey Hogan, parliamentary secretary to the minister of energy and natural resources.

The timing is awkward and urgent. As electric vehicles spread, heating systems switch from gas to power and heavy industry decarbonises, Canada’s electricity use could double by 2050 under net-zero scenarios, according to Canada’s Energy Future. Meeting that demand by traditional means would require vast spending on wires, substations and new generation. Those costs would not vanish. They would land on consumers’ bills.

Alberta’s experiment rests on a different idea: build less, manage more. EPCOR will trial time-based pricing designed to shift consumption away from peak hours. If households charge cars, run appliances or heat homes when demand is low, utilities can smooth spikes in usage. A flatter demand curve reduces strain on the system and may delay expensive upgrades.

The Alberta Energy Efficiency Alliance is strengthening incentives for efficient consumption. Meanwhile, The Transition Accelerator is examining how heating systems and local energy networks might be coordinated to ease pressure across the grid. The aim is flexibility rather than expansion.

If the pilots deliver measurable savings and steadier service, other provinces may follow, regulatory politics permitting. That would create opportunities for advanced meters, digital management platforms and new customer-facing services in a market long defined by heavy infrastructure.

Obstacles remain. Consumers may bristle at unfamiliar tariffs. Greater digitalisation raises concerns about data security and privacy. Utilities must also adapt to a model that rewards restraint as much as sales.

The broader lesson is clear. The next phase of Canada’s energy transition will not be determined solely by how much renewable power it builds. It will depend on how shrewdly electricity is priced, shifted and consumed. Alberta is testing whether smarter use can substitute for ever more supply. Others will be watching.