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ARTICLE · 08 MARCH 2022

Alberta Proposes New Grid Displacement Factor With Important Implications For Solar And Wind Projects

Osler, Hoskin & Harcourt LLP
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On March 3, 2022, the Government of Alberta proposed a new electricity grid displacement factor (EGDF) applicable to all emission offset projects that displace grid electricity with renewable electricity...

CanadaEnergy and Natural Resources
Jacob Sadikman
Jacob Sadikman
Sander Duncanson
Sander Duncanson
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On March 3, 2022, the Government of Alberta proposed a new electricity grid displacement factor (EGDF) applicable to all emission offset projects that displace grid electricity with renewable electricity or reduce grid electricity usage. Once finalized after a 30-day public comment period, this new EGDF will apply to all renewable offset projects with offset activity start dates between January 1 and December 31, 2023, including solar and wind electricity generation facilities.

The proposed EGDF of 0.52 tonnes CO2e per MWh is a modest drop from the current figure (0.53 tonnes CO2e per MWh). However, this and further potential changes to the EGDF by 2024 will be an important consideration for both existing and prospective offset projects, with implications for project profitability and financial incentives for new solar and wind electricity projects across Alberta.

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