Alberta’s wholesale power prices hit an eight-year low

Following the historically high wholesale electricity prices observed in 2022 and 2023, Alberta’s energy market experienced a significant correction. According to the recently released Alberta Electric System Operator (AESO) 2025 Annual Market Statistics, the province’s wholesale electricity prices have reached an eight-year low. 

For consumers and businesses looking to understand their utility costs, analyzing the 2025 data provides a clear picture of how market fundamentals function in Alberta’s deregulated system.

Here is a breakdown of the key data points from the AESO report and the economic drivers behind the price decline.

Prices fell despite rising demand and fuel costs

In 2025, the average wholesale pool price of electricity in Alberta fell to $43.68 per MWh. This represents a 30.4% decrease compared to 2024 ($62.78/MWh).

In energy markets, falling prices are often the result of decreasing demand or cheaper fuel inputs. Notably, the 2025 price drop occurred while both demand and fuel costs were moving in the opposite direction.

• Rising demand: Alberta’s Average Internal Load (AIL) grew by 2.0% in 2025. Furthermore, the province set a new all-time winter peak demand record of 12,785 MW in December, despite temperatures being more than 10 degrees Celsius warmer than during the previous record peak, underscoring the structural nature of load growth.
• Rising natural gas prices: Natural gas is the dominant fuel source for Alberta’s grid, responsible for 76.8% of all generation in 2025. 

If demand reached record highs and the primary fuel source became more expensive, the decline in electricity prices points to a structural shift on the supply side.

Implications for Alberta consumers and industry

It is important to note that the wholesale pool price is only one component of a final electricity bill. Consumers and businesses must also pay transmission and distribution fees, which cover the infrastructure required to deliver power and remain largely decoupled from wholesale energy prices.

However, the “Energy Charge” remains a highly variable and significant portion of overall costs. The AESO’s 2025 data clearly indicates that the recent wave of generation investments has successfully returned the wholesale market to a highly competitive state. For residential consumers, commercial operators, and energy-reliant industries, this expanded supply cushion provides a much more cost-effective and stable pricing environment moving forward.