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Alberta electricity & gas market update – April 2026

13 May 2026

Electricity market overview

April’s average AESO spot price fell 18% MoM from March’s settle of $33.70/MWh, and declined 18% YoY from April 2025’s $33.69/MWh.

Average AESO Pool Price: $27.61/MWh

Monthly Price Range
  • Peak hourly price: $833.51/MWh, recorded on April 16th
  • Minimum hourly price: $0.00MWh
  • Demand Highlights: Monthly peak demand at 11,306 MW

Key drivers of market volatility

  • The Alberta Electric System Operator (AESO) has reported a massive surge in connection requests from large-scale data centers, with over 1,200 MW of new load recently greenlit for the first phase of integration.
  • April 2026 saw the third annual Energy Storage Alberta Summit, where industry leaders confirmed that battery assets are no longer just “experimental” but are now essential market participants.
  • Despite the successful launch of the Genesee Repowering project (which saw the final transition of major units to high-efficiency natural gas) April remains a high-stakes month for grid reliability.

Natural gas (AECO) market overview

Average AECO Price: $1.57/GJ

AECO gas prices remain low at $1.44/GJ for the near term (May–June 2026). However, the forward curve points to a gradual recovery, with prices expected to rise around ~$2.64/GJ by 2029 as demand fundamentals tighten.

Forward curve indicators
  • ~$2.35/GJ – 2027 Futures
  • ~$2.53/GJ – 2028 Futures
  • ~$2.64/GJ – 2029 Futures

Market insights & trends

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FREQUENTLY ASKED QUESTIONS

 

Why did Alberta's electricity prices drop in April despite high volatility?

April’s average AESO spot price fell to $27.61/MWh—down 18% from both March and the previous year. This decline occurred even though the month saw extreme volatility, with prices spiking to $833.51/MWh on April 16th. The price drop was driven primarily by low natural gas costs (AECO averaging $1.57/GJ) and relatively moderate demand, though grid reliability challenges persisted due to significant gas fleet outages.

What's happening with data center demand in Alberta?

The AESO has reported a massive surge in connection requests from large-scale data centers, with over 1,200 MW of new load recently greenlit for the first phase of integration. This represents a major shift in Alberta’s electricity planning and is driving fundamental changes in how the grid must operate. Combined with confirmation from the Energy Storage Alberta Summit that battery assets are now essential (not experimental), Alberta’s grid is being reshaped by new demand patterns.

What should we expect for natural gas prices going forward?

While AECO gas prices remain low in the near term at $1.44/GJ (May-June 2026), the forward curve signals a gradual recovery as demand fundamentals tighten. Futures pricing shows steady increases: ~$2.35/GJ in 2027, ~$2.53/GJ in 2028, and ~$2.64/GJ by 2029. This trajectory suggests businesses should consider locking in current low rates while planning for higher gas-linked electricity costs in coming years.

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