ATCO, AltaLink build 130-kilometre transmission line in central Alberta

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A joint project between ATCO of Calgary and AltaLink will build a 130-kilometre transmission line in central Alberta, providing infrastructure that will enable the province to absorb more renewable energy.

The Central East Transfer-Out project, which will transmit electricity across Red Deer, Lacombe and Stettler counties, will deliver more than 750 megawatts of electricity to the Alberta grid.

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Melanie Bayley, president of ATCO Electric, said the line will help reduce “congestion” in Alberta’s power grid, allowing more available electricity to be used at one time.

“There are a number of new renewable projects in the pipeline that are going to be developed by these renewable energy producers, but they will only do that if they believe they have access to the market through the transmission system,” Bayley said.

“A project like this opens up that access.”

The $332-million transmission line is being built with the support of a $283.5-million low-interest loan from Canada Infrastructure Bank (CIB), a federal government corporation responsible for supporting revenue-generating infrastructure projects. It received approval from the Alberta Utilities Commission (AUC) in 2021, with major construction scheduled to begin this month. Environmental and geotechnical studies, along with land acquisition, have already been completed.

CIB decided to make the loan in part because of the opportunity to pursue renewable energy projects in central Alberta.

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“(These projects) help us meet growing electricity demand, as well as balance the grid and create renewable energy mixes in a more reliable way that allows for continued grid operations,” said Ehren Cory, CEO of CIB.

The bank has committed $10 billion to clean energy projects. The joint ATCO-AltaLink project is the first to support under that portfolio. It has also lent money for renewable energy projects, nuclear reactors, hydropower and battery storage.

New transmission lines enable more renewable energy projects

Transmission lines can only carry so much electricity, Bayley said. By adding more capacity, she said, more renewable energy projects can be supported.

“It’s no different than a traffic jam. Think of it like trying to merge into traffic on Deerfoot…if they add another lane or build another Deerfoot right next to it, suddenly more people can get on,” she said. “It’s the same thing with an electric transmission system.”

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In the meantime, the loan will enable construction of the line with minimal impact on Albertans’ electricity bills, said Gary Hart, president and CEO of AltaLink.

Hart said renewable energy sources require more connections and distribution sources due to their volatility, which makes projects like these important to support more renewable energy projects.

“If we start replacing low-capacity renewables with high-capacity gas or coal, we’re going to need more transmission or distribution systems to do that.”

ATCO is building 85 kilometers of transmission line, and AltaLink the remaining 50 kilometers.

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