On August 27, 2025, Alberta’s power sector took a bold step forward. The Alberta Electric System Operator (AESO) revealed the final design for the Restructured Energy Market (REM). This new framework aims to increase grid reliability, improve affordability, and attract private investment to meet future energy demand. For residents and businesses alike, REM introduces important changes that will affect how electricity is priced and managed.
What Is the REM — And Why Now?
The REM is Alberta’s answer to a changing energy landscape. It establishes new tools like scarcity pricing, Locational Marginal Pricing (LMP), enhanced reliability operations, and reserve products to support grid stability. Alberta’s grid faces more stress as demand climbs and generation sources diversify, so these changes are meant to modernize the system. In short, REM is designed to better align electricity supply, demand, and investment incentives.
Key Features of REM
Here are some of the main components built into Alberta’s new energy market:
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Scarcity Pricing: Prices may spike when demand is high and supply is tight, sending a signal to reduce usage or ramp up capacity.
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Locational Marginal Pricing (LMP): Electricity prices will vary depending on location, reflecting transmission constraints and local demand.
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Reliability Operations & Reserves: New tools will give grid operators more flexibility to ensure there is enough backup capacity.
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Grid Investment Incentives: The market design encourages investment in generation, storage, and transmission to meet future needs.
How REM Will Affect Consumers & Businesses
Under the new rules, your electricity bill could start shifting based on how and when you use power. During peak periods or in constrained areas, rates might increase because scarcity pricing and LMP kick in. Businesses with heavy usage or those located in grid-constrained zones may feel the impact more sharply than residential users. On the upside, more detailed pricing may give you more control — you could shift usage to off-peak times to reduce costs.
Risks, Opportunities & What to Watch For
Any major shift comes with both challenges and advantages. The risks include sudden rate spikes during high demand, or unexpected cost increases in certain regions of the grid. But the opportunities lie in innovation — demand-response programs, energy storage, and smarter grid tools can help manage costs. Those who act early to understand usage patterns and invest in efficiency will be better positioned.
How to Prepare for the Transition
You don’t need to wait until REM is fully active to take steps that will protect you. Here are a few strategies:
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Monitor your hourly electricity usage to identify peak-demand periods.
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Upgrade to energy-efficient systems or appliances that reduce load.
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Explore load-shifting — use heavy appliances during off-peak hours.
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Consider energy storage or smart controls if feasible.
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Stay informed — track AESO announcements and utility changes in your area.
REM Marks New Electricity Pricing
Alberta’s REM marks a new era in how electricity is priced, used, and managed. For many, it will require adaptation and learning. However, the design is built to encourage efficient usage, improved grid resilience, and more informed energy decisions. By staying informed and proactive, both homeowners and businesses can adjust gradually rather than be caught off guard. If you’d like help interpreting what this means for your energy bill or usage, we’re here to assist.