Alberta’s Renewable Electricity Market: What Project Owners Should Be Doing Now
Alberta’s electricity market is moving through one of its most significant structural changes in decades.
The Restructured Energy Market (REM) will change how electricity is priced, dispatched and managed, with new market mechanisms designed to improve reliability, strengthen investment signals and accommodate a changing generation mix.
For renewable energy developers, storage operators, industrial consumers, investors and other market participants, the implications extend well beyond the eventual market transition.
The time to understand what REM means for your project is now.
The core REM ISO Rules were published in March 2026 following Ministerial approval, and the AESO has moved into implementation and market-readiness activities. The next phase of REM ISO Rules engagement is scheduled to begin in September 2026 and continue through April 2027.
For organizations with projects that will operate through this transition, the current period provides an important opportunity to examine assumptions, prepare systems and evaluate commercial implications.
Where Alberta’s REM transition stands
The development of REM has been underway for several years. The REM design was finalized and published in August 2025. Proposed REM ISO Rules followed in September 2025, giving stakeholders an opportunity to review the detailed framework and provide feedback.
In January 2026, the AESO submitted the REM ISO Rules to the Government of Alberta for approval. On March 12, 2026, the AESO published the revised rules along with the Minister’s confirmation of approval. The process then moved into implementation.
On March 24, the AESO held a full-day REM implementation and market-readiness session for market participants. The 2026 work program has included participant readiness, market power mitigation, the Cost of New Entry study and information technology systems implementation.
The next major engagement period begins in September 2026 and is scheduled to continue through April 2027, focusing on implementation-related revisions to the REM ISO Rules.
The REM timeline
| Date / Period | Milestone | Why it matters |
| August 2025 | REM design finalized | Established the high-level market framework. |
| September 4, 2025 | Proposed REM ISO Rules released | Began detailed stakeholder review. |
| January 2026 | REM ISO Rules submitted to Government | Moved the rules toward formal approval. |
| March 12, 2026 | REM ISO Rules and Ministerial approval documents published | Established the approved rules framework. |
| March 24, 2026 | REM implementation and market-readiness kick-off | Began the implementation-focused phase of the transition. |
| May 20, 2026 | Market Participant Readiness session | Addressed preparation requirements for market participants. |
| June 22, 2026 | Market Power Mitigation and Cost of New Entry engagement | Continued development of important REM mechanisms. |
| July 15, 2026 | Written feedback deadline for those workstreams | Completed another stage of stakeholder input. |
| September 2026 | Next REM ISO Rules engagement begins | Moves implementation-related rule development into its next phase. |
| September 2026-April 2027 | Ongoing REM Rules engagement | Provides a defined period for continued stakeholder participation. |
| 2026-2027 | Market readiness and systems implementation | Organizations need to translate REM requirements into internal processes, systems and commercial decisions. |
The timeline shows where the transition stands today: the market framework has been established, detailed implementation work is underway, and stakeholder engagement continues. For project owners, that creates a practical planning window.
Revisit the business case
Most energy projects are developed around a collection of assumptions.
Those assumptions may relate to power prices, curtailment, transmission access, project costs, revenue structures, financing, operating conditions and timelines. REM provides a reason to revisit those assumptions.
A project evaluated under Alberta’s current market structure may perform differently under the future market design. That possibility deserves to be reflected in project modelling before major investment decisions are locked in.
Useful questions include:
- How sensitive is the project to changes in electricity prices?
- How could different market conditions affect expected revenue?
- Which assumptions have the greatest influence on project economics?
- How might the project’s operating strategy change?
- Which risks can be modelled today?
- Which uncertainties require scenario analysis?
The objective is to understand which parts of the business case are resilient and which depend heavily on market assumptions.
Location becomes an important commercial consideration
REM’s move toward locational pricing is particularly relevant for project developers. The value of electricity can vary depending on where it is produced and the conditions affecting the broader electricity system.
For renewable projects, this creates an important distinction between resource quality and commercial value. A location with an excellent wind or solar resource may produce a different commercial outcome depending on transmission constraints, congestion and other market conditions. Site selection therefore deserves consideration across several dimensions.
A strong resource remains important. So do grid conditions, infrastructure, market exposure and the project’s ability to capture value from the electricity it produces.
Storage deserves particular attention
Energy storage is another area where REM could have significant implications. A battery’s value depends heavily on when it charges, when it discharges and which market opportunities it can access. Storage developers should consider how the changing market structure interacts with:
- energy arbitrage
- ancillary services
- operating constraints
- market participation
- charging and dispatch strategies
- degradation
- revenue stacking
- project financing
The business case should reflect the way the asset is expected to operate within the market in which it will participate. That makes REM analysis particularly relevant for storage projects still moving through development.
Market changes can affect project design
Market considerations can influence decisions around project location, technology, operating strategy, commercial structure and timing.
For example, a change in expected revenue patterns may affect the preferred project scale. Transmission conditions may influence site selection. New market participation requirements may create systems or operational investments that need to be included in project planning.
These relationships are easiest to address when they are considered during project development.
What should project owners be doing now?
The current transition period provides an opportunity to turn market information into practical planning.
1. Map your exposure
Identify where the project could be affected by changes in pricing, dispatch, market participation, transmission constraints and other REM-related mechanisms.
2. Re-test the financial model
Run scenarios against the assumptions that have the greatest influence on project economics. Consider different price, curtailment, operating and market conditions.
3. Review project design
Determine whether technology selection, project scale, location, operating strategy or commercial structure should be revisited.
This is particularly important for projects that remain early enough in development for meaningful changes to remain possible.
4. Assess operational readiness
The AESO’s REM IT Systems Implementation work is already progressing through specific participant-facing systems and processes. The 2026 schedule includes sessions covering market messaging and APIs, settlement systems, participant and asset registration, generator outage submissions and offer-control submissions.
For organizations affected by these changes, readiness involves systems, data, processes and people.
5. Stay engaged through 2026 and 2027
The AESO’s upcoming REM Rules Engagement is scheduled from September 2026 through April 2027. This gives market participants a defined period to follow implementation-related rule changes and participate in stakeholder engagement.
Organizations should monitor the workstreams most relevant to their assets and business models and incorporate material developments into ongoing planning.
The planning window is open now
REM has reached an important stage. The core rules are established. Implementation is underway. Market participants are beginning the detailed work required to prepare systems, processes and operations.
For project owners, this is an appropriate time to examine how the changing market intersects with project strategy. That means reviewing assumptions, testing scenarios, examining project design and understanding operational requirements.
The transition also creates an opportunity to identify decisions that may become more difficult or expensive to change later.
Preparing for REM means preparing the business
REM will influence the environment in which Alberta energy projects operate. The implications will vary by project, technology, location, commercial structure and market exposure. That makes project-specific analysis particularly valuable.
- What does the changing market mean for project revenue?
- How could locational pricing affect the site?
- Which operating assumptions should be revisited?
- What systems will need to change?
- Which risks deserve greater attention?
- Where could new opportunities emerge?
These are the questions that connect market reform to practical business decisions.
Solas Energy helps organizations navigate Alberta’s evolving energy landscape by connecting market developments with the technical, economic, regulatory and strategic decisions that shape project outcomes. If your project will operate through Alberta’s transition to REM, now is the time to understand what the changing market could mean for your business.