Cluster Assessment Process

Cluster 1 Progress Update

January 31, 2024

Public
Notice

In accordance with its mandate to operate in the public interest, the AESO will be audio
recording this session and making the session recording available to the general public at
www.aeso.ca. The accessibility of these discussions is important to ensure the openness and
transparency of this AESO process, and to facilitate the participation of stakeholders.
Participation in this session is completely voluntary and subject to the terms of this notice.

The collection of personal information by the AESO for this session will be used for the purpose
of capturing stakeholder input for Cluster Assessment Process stakeholder sessions. This
information is collected in accordance with Section 33(c) of the Freedom of Information and
Protection of Privacy Act. If you have any questions or concerns regarding how your
information will be handled, please contact the Privacy Officer, Legal and Regulatory Affairs at
2500, 330 – 5th Avenue S.W., Calgary, Alberta, T2P 0L4, by telephone at 403-539-2890 or by
email at privacy@aeso.ca.

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Using Zoom Webinar: Asking Questions
• All attendees join the webinar in listen-only mode (cameras are disabled and microphones
muted)
• Before asking your question, please introduce yourself including your organization
• Two options to ask questions via computer or smartphone:
1. During the session
• Click the icon to raise your hand (click again to lower) and the host will see that you have
raised your hand
• The host will unmute your microphone and you, in turn, will need to unmute your
microphone before you can ask your question
• Your name will appear on the screen, but your camera will remain turned off
2. Click the “Q&A button” at any time
• Type your questions into the Q&A window at any time
• You’re able to like questions that have already been asked
• To ask questions via conference call
– To raise your hand, press *5 on your phone’s dial pad; the host will be notified
– To toggle between mute and unmute, press *6 on your phone’s dial pad
– Your number or username will appear on the screen

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Land Acknowledgement

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AESO Stakeholder Engagement Framework

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Stakeholder Participation

• The participation of everyone here is critical to the engagement process.

To ensure everyone has the opportunity to participate, we ask you to:
– Listen to understand others’ perspectives
– Balance airtime fairly
– Keep an open mind
– Disagree respectfully

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Welcome and Introductions

• Amir Motamedi, Director, Customer Grid Access

• John Waenink, Manager, Grid Analytics
• Lena Cordell, Lead, Regulatory & Transmission Services
• Colleen Simpson Laird, Manager, Regulatory & Transmission
Services
• Pravin Koshti, Manager, Customer Access Studies and Dean
Chartier, Senior Transmission Services Analyst will assist
presenters with Q&A

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Agenda
Time Topic Presenter

9:00 – 9:10 Welcome and Introductions Amir Motamedi

9:10 – 9:20 Cluster 1 Progress Amir Motamedi

9:20 – 9:35 Congestion Risk John Waenink

9:35 – 9:55 Q&A

9:55 – 10:05 Break

10:05 –10:20 Stage 2 Details & Schedule Lena Cordell

10:20 – 10:40 Cluster 2 Changes & Schedule Colleen Simpson Laird

10:40 – 11:00 Q&A

11:00 – 11:30 Upcoming Activities & Next Steps Amir Motamedi

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Session Purpose and Objectives

• Provide stakeholders with an update on the progress of

Cluster 1, including updated congestion risk estimates;
• Discuss the detailed deliverables and schedule for Stage 2
of Cluster 1;
• Outline changes that will be implemented for Cluster 2; and
• Present a plan for stakeholder engagement activities in
2024.

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Registrants (as of Jan. 23, 2024)
• Abacus Power • Power Advisory LLC
• Coben Advisory Inc. • Joss Wind Power Inc.
• ABO Wind • Power Grid Specialists Corp. (PGSC)
• DePal Consulting Limited • Kalina Distributed Power Ltd.
• Acciona Energy • Primary Engineering & Construction
• DJA Engineering • Kilo Power Inc.
• Acestes Power Corporation
• Dow Chemical Canada ULC • Kiwetinohk Energy Corp.
• AGE • Procido LLP
• DP Energy • Lionstooth Energy Inc.
• Alberta Utilities Commission (AUC) • Proteus Power
• EDP Renewables • Maskwa Environmental Consulting
• AltaLink Management Ltd. • RealPart Canada
• Elemental Energy • Maxim Power
• Arcadis • reconcept RE Canada Ltd.
• Enel Green Power • McCain Foods
• ASCENT Energy Partners • RES Group
• Enel North America • Midgard Consulting
• ATCO Electric • Rockpoint Gas Storage Canada
• Enerfin Inc. • Members of the Public
• Aurora Energy Research • Signalta Resources Limited
• Energy Storage Canada • Morden Environmental
• Annapolis West Education Centre (AWEC) • SmartWires Inc.
• ENMAX • Morley Ventures Inc.
• Axium Infrastructure Inc. • Solas Energy Consulting Inc.
• EPCOR • Neoen
• BluEarth Renewables Inc. • Stantec
• Environmental Resources Management • Northland Power Inc.
• Boost Energy Ventures Inc. • SunAlta Power Inc.
• EZ Energy Inc. • Nu-E Corp.
• BowMont Capital & Advisory • Suncor Energy
• Federation Engineering • NVS Engineering Inc.
• Bright Diamond Consulting • SunGate Energy
• Firefly Power and Energy Services Inc. • OC Consulting
• BTG Energy Corp. • Swan Hills Synfuels
• FortisAlberta Inc. • O’Doig Consulting Services Inc.
• Burns & McDonnell • SWITCH Power
• Frontline Energy Consulting • Utilities Consumer Advocate (UCA)
• Caerus Commodities • TC Energy
• Government of Alberta • Oqin
• Canadian Renewable Energy Association • TransAlta
• Hardline Engineering • Osler, Hoskin & Harcourt LLP
(CanREA) • Universal Kraft Canada Inc.
• Heartland Generation Ltd. • Pathfinder Clean Energy (PACE) Canada
• CANWEST Solar Development Corp. • Versorium Energy Ltd.
• hep Energy Canada • Pembina Pipeline Corporation
• Capital Power Corporation • Westbridge Renewable Energy Corp.
• Hill & Knowlton Strategies • Piikani Resource Development Ltd.
• Capstone Infrastructure Corporation • Western Power Partners
• Invenergy • Plains Midstream Canada ULC
• CF Power Ltd. • Worley
• JJ Power & Energy Inc. • PNE Canada Inc.
• City of Calgary • Zenith Power
• Jacobs • Potentia Renewables Inc.
• City of Medicine Hat
• Clem Geo-Energy Corp.
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Cluster 1 Progress

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Strong Interest in Renewable and Storage Development

133 of 145 SASRs Accepted Total MC: 19.8 GW

Cogen
Battery 47
Compressed
1,775 Air 320
Wind
4,421 Gas
Dx Connected 2,300
40
Pumped
Hydro
400

Tx Connected
93 Solar
10,517

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Preliminary Assessment Package
The AESO delivered the Preliminary Assessment Packages with minimal delay despite the
significant volume of projects. The packages included the following items:
• Cover letter (including GUOC estimate)
• Preliminary Assessment Report
– Engineering Studies
• Power Flow Studies
– Category A and select Category B contingencies for the individual project
– Category A for the Sub-cluster (projects in a same vicinity)
• Thermal criteria violations reported with high level mitigations
• Identifies the selected connection alternative(s) for Stage 2
– Congestion Estimates
• Individual project congestion estimate (individual project energizes)
• Cluster projects congestion estimate (all projects in the specific cluster energize)

• AACE Class 5 Cost Estimate(s) for the selected connection alternative(s)

• REMINDER: Stage 2 Deadline (fee payments due) is February 9, 2024

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Congestion Risk

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Addressing Congestion
• The congestion heat maps present bookend scenarios assuming all projects in a cluster move forward to
commercial operations
• The AESO continues to plan for a congestion-free system as required by legislation, while recognizing
potential changes may follow the government’s transmission policy consultation
• Key transmission system developments to manage congestion:
– Central East Transfer Out (CETO), Bowmanton Voltage Support, Vauxhall Area Transmission Development, SE &
SW Tx Developments
• Provide locational signals to generation developers to where transmission capability is available and
planned
– GUOC, Transmission Capability Maps & Long-term Transmission Plan and provide congestion information
– Integrating congestion information as part of the new streamlined Connection Process

• The AESO manages congestion in real-time by using:

– Transmission Constraint Management (TCM) rule and operational solutions where appropriate
• The AESO will seek 15(2) Exception Applications when required
• Note that the above congestion management measures will not address the increased supply surplus
likelihood
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Volume of Projects in the AESO Connection Process
0 4,000 8,000 12,000 16,000 20,000

Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
Solar Wind Battery Gas Cogen Compressed Air Pumped Hydro

Key Highlights
• Stage 1: Almost 20,000 MW accepted into Cluster 1
• Stage 2-3: Over 14,000 MW have met the AESO transitional requirements
• Stage 4: ~800 MW in regulatory phase
• Stage 5: Almost 6,000 MW in construction phase
• Largely renewables in the South and Central areas, both Tx and Dx connected
• Energization is planned over the next two to three years
• Developing system plans to manage congestion risk

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Supply Surplus vs. Congestion

Supply Surplus Congestion

• All $0 generation cannot be dispatched • In-merit generation cannot be

• Occurs when there is more $0
generation offered than what is
required to meet demand
• Results in partial-volume dispatches of
$0 offers
• See ISO Rule 202.5 Supply Surplus
dispatched
• Caused by constraints on the
transmission system
• Results in generation curtailment
• See ISO Rule 302.1 Real-time
Transmission Constraint
Management

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Evolving Supply Surplus
• Total generation seeking system access now exceeds 40,000 MW
• Installed generation is ~21,000 MW
• Alberta peak load is ~12,300 MW
• Potential for increasing supply surplus hours pending advancement of projects

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Supply Surplus Likelihood
• Supply surplus with projects which have paid GUOC
– 1.7% of hours
– 0.3% of $0 flexible generation MWh foregone
• Supply surplus with all in-flight projects (met transition criteria)
– 43% of hours
– 22% of $0 flexible generation MWh foregone
• This information is provided to help you understand that supply
surplus likelihood is directionally increasing with additional
generation development in the system
• Supply surplus will depend on the projects that construct

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Congestion Analysis – Approach and Assumptions
Approach
• Congestion forecasted using Aurora market simulation tool
• Market simulation with DC power flow solver
• Congestion from Category A facility rating violations
– Congestion risks increase when considering more than Category A facility ratings

Assumptions
• Generator profiles based on energy market production cost modelling and
renewable generation forecasts
• For each cluster: existing generation, modelled projects inside the cluster,
modelled projects outside the cluster that have paid GUOC, cluster projects

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Congestion Heat Maps – Northwest

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Congestion Heat Maps – Northeast

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Congestion Heat Maps – Edmonton

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Congestion Heat Maps – Central

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Congestion Heat Maps – Southwest/Calgary

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Congestion Heat Maps – Southeast

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Q&A

• Topics:
– Stage 1 Deliverables
– Congestion Risk

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Break

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Stage 2 Details and Schedule

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Stage 2 Timeline Summary

Milestone Target Date

Project List published with projects accepted to Stage 2 Feb. 16, 2024

Detailed Assessment Packages Issued Jun. 28, 2024*

Change Proposal Submissions Due July 26, 2024*

GUOC Evidence/Payment & Stage 3 & 4 Security Due Sept. 6, 2024*

Project List published with projects accepted to Stage 3 Sept. 13, 2024*

*Cluster 1 includes a significant number of projects. The above timelines may be adjusted
based on the number of projects that continue to Stage 2.

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Detailed Assessment

• Detailed Cluster Study (one for each cluster region):

– Power flow (thermal, voltage) (Category A, Category B, selected Category C5)
– Dynamic studies, short circuit studies
– Identify Reliability Criteria violations and high-level mitigation plans

• Detailed Assessment Report:

– Preferred connection alternative
– Power flow, transient stability, and short circuit results for the Study Area
– High level discussion on mitigation measures/list of RAS
• Discussion on conceptual long-term transmission plans in the area

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Congestion Assessment
• One report for each cluster region
• Uses each project’s preferred alternative
• Congestion from N-0 facility rating violations
• Congestion from pre-contingency curtailment to prepare for select N-1
facility rating and MSSC violations
– % of time with congestion
– Congested energy (MWh) on each transmission facility
• Partial-volume dispatches of $0 generation for supply surplus (MWh)
• Congestion heat maps for each cluster region
• Congestion assessment results and heat maps will be posted on the
AESO website

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Facility Scope

• Details the preferred connection alternative

• Not a design document
• Prepared by the AESO, input from TFO required
• Utilized in updating the AACE Class 5 cost estimate, as required
• Will be used as a reference for drafting the Functional Specification
• Will include:
– Facility requirements for the connection alternative, e.g., min. capacity,
major equipment, site expansion, telecom.
– Anti-islanding schemes and other potential scope items/risks, e.g.
protection & control, area assessment.

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Detailed Assessment Package
• Includes:
– Detailed Assessment Report
– Congestion Assessment
– Facility Scope
– AACE Class 5 cost estimate
– Cost sharing information (if applicable)

• Target: June 28, 2024

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Market Participant Decision
• Once Detailed Assessment Package is issued, the MP/GFO will have 10 weeks
to determine if they want to proceed to Stage 3
• The MP/GFO can do one of the following:
– Proceed to Stage 3 by providing the GUOC evidence/payment and
Stage 3 & 4 Security by the due date (target September 6, 2024)
– Request to cancel the project
• The MP/GFO may also wish to submit a Project Change Proposal by the due
date (target July 26, 2024)
• If the MP/GFO does not provide the GUOC evidence/payment and Stage 3 & 4
Security by the due date, the AESO will cancel the SASR and the related Project
• Providing GUOC evidence or payment will include the project in modelling in
future connection assessment study cases

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GUOC and Stage 3 & 4 Security
• GUOC evidence is required for Connection Projects
– For this requirement, the GFO must provide financial security to the AESO that meets
the requirements of Section 103.3 of the ISO rules, Financial Security Requirements

• GUOC payment is required for BTF projects

– The AESO will issue an invoice to the GFO at least 30 days prior to the payment
deadline

• Stage 3 & 4 Security is required for Connection Projects

– The MP must provide the TFO with the appropriate security to cover Stage 3 & 4 costs
estimated to be incurred by the TFO from completion of Stage 2 up to receipt of Permit
& License (P&L) from the AUC
– To meet this requirement, the TFO must confirm to the AESO that they have received
the security

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Change Proposals and Cancellations

• Changes to some project details are allowed near the end of Stage 2
– The change assessment fee will apply to some changes
– See the Project Change Proposal Guidelines for a list of allowable changes and
when the change assessment fee applies

• Reductions in MC will be reflected in GUOC evidence/payment

– The AESO will review the project change proposal, and if approved, the GFO will
be required to provide GUOC evidence/payment based on the reduced MC
• If a project is cancelled at any time after the Stage 1 decision (either by MP
request or for MP inaction) the reassessment fee will apply
– This fee will be utilized to study impacts to other projects in the cluster

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Cluster 2 Changes and Schedule

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Cluster 1 Lessons Learned
• In late 2023, the AESO initiated a comprehensive lessons learned exercise to document
initial findings for Cluster 1
• Data collection methods included:
– Interviews and workshops
– Stakeholder survey
– Document review
• Parties engaged:
– AESO staff, TFOs, DFOs, MPs
• Focus Areas
1. SASR Requirements and Submission Process
2. Invoicing and Payment
3. Project Coordination and Management
4. Study Scope Development and Review

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Year End Stakeholder Survey Results
Topic Question

Process Design If you provided feedback, was it considered in the process design?

Was the payment process clearly communicated?

Fees
Was the payment process efficient?

Was the completion and submission process clearly communicated?

SASR
Was the completion and submission process efficient?

Was the issuance and review process clearly communicated?

Study Scope
Was the issuance and review process efficient?

Overall 71% positive responses

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Challenges with Current SASR

• Existing SASR was updated with additional fields for Cluster 1 intake
– New requirements were added with minor changes to existing fields, but the
general SASR structure was left largely unchanged

• Problems with SASR format became apparent over intake period

– Current template is geared towards one-to-one relationships between assets
and generating units/AGFs/storage
– Unable to accurately account for more complex generating facilities

• Significant churn experienced for clarifications

– The AESO frequently requested more information on asset make-up and facility
operations, requiring multiple exchanges with MPs
– Clarifications captured in emails and calls rather than the SASR

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A New SASR for Cluster 2
• A new SASR will be designed with complex facility arrangements in mind*
– Market operation focused to account for relationships between assets,
generating units/AGFs, storage, on-site loads, equipment limitations, etc.
– Fewer open text fields and more selective fields to avoid interpretation
• SASR Guide will be updated with improved explanations and examples
• A PDUP checklist will be provided to MPs to improve submission quality,
accuracy, and consistency
• Updated SASR and SASR Guide will be posted by the end of March

*Note: Cluster 1 projects will receive a similarly focused “Market Operations Form”
to confirm alignment between the AESO and MPs prior to the detailed studies

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Changes to Cluster 2 Intake
• Intake window timing
– MPs must submit using the new SASR, or complete a supplement, to ensure the AESO has the
necessary information for assessment
– It is recommended MPs submit after the updated SASR is available at the end of March, to avoid
inefficiencies and rework in the review process
– Cluster 2 SASR deadline is targeted for June 28, 2024, pending stakeholder feedback

• An increase in site control requirements from 50% to 90% will be investigated, to align with
FERC Interconnection Rules
• Processing Fee is eliminated
– High administrative burden for a relatively small fee

• Financial agreement with TFO required for acceptance into Cluster 2

– TFO input is required beyond the scope covered by the AESO fees
– Confirmation from the TFO must be provided by preliminary assessment fee due date
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Cluster 2 Fee Calculations
• Fees for Cluster 2 will be based on the requested MC for the project
– An appropriate MARP was challenging to determine given the various
operational configurations and limitations that could apply
– MC is a more logical value to use in place of MARP
• More broadly understood term in industry
• Required for assets in the energy market
• Reflective of operational configurations and limitations
• Commonly used for generation reporting
– MC will also be added to the Connection Project List
• Better reflect the generation amounts being brought to market for each project

• The Fee Guideline will be updated by the end of March

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Clarifications to Inclusion
• “Inclusion” on the Project List was replaced in September with Cluster 1
– Reflected the September 1, 2023, transition criteria and future cluster Gate 2
criteria to be modelled in connection assessment studies
– Previously referred to the criteria used for purposes beyond connection planning
(such as system planning and long-term adequacy forecasting)

• Both sets of criteria will be included on the project list going forward
– Inclusion for connection studies will be renamed for clarity, and the previously
reported inclusion column will be restored

CA Modelled Inclusion

Included in future connection assessment Included for purposes such as system

studies, since Sept 1, 2023 planning & forecasting, as before

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Cluster 2 Timeline
Preliminary Detailed GUOC
Assessment Assessment Evidence/
Fee Due Fee Due Payment and
Security Due
Key Key Key
Decision Decision Decision

Preliminary Detailed
SASR Deadline Assessment Assessment
Package Issued Package Issued

Stage 1 Projects Stage 2 Projects Stage 3 Projects

Published Published Published

Stage 0 Stage 1 Stage 2

0
Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25

Note: The stage durations shown are based on the initial design for Cluster 1. Dates are approximate and will
be adjusted as needed to incorporate process improvements and the actual completion date of Cluster 1.

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Q&A

• Topics:
– Stage 2 Deliverables and Schedule
– Changes for Cluster 2
– Cluster 2 Schedule

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Next Steps and Session Close-Out

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Upcoming Key Dates and Next Steps
• Project Change Proposals
– Outstanding deficiencies must be addressed by February 9, 2024
– Failure to resolve deficiencies and clarifications will result in the PCP being rejected

• Detailed Assessment Fee

– Payments due (with remittance) on February 9, 2024
– Refer to the Fee Guideline for more details
– Failure to pay by the due date will result in the SASR
and related project being cancelled

• Stage 1 Lessons Learned

– Data collection will begin in February 2024

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2024 Stakeholder Engagement Plan

• Visit the Cluster Assessment Process Implementation page and

subscribe to the AESO stakeholder newsletter for the latest information.

Timing Format Focus Topics

June 2024 Info. Session Cluster 1 Recap, Cluster 1 Stage 2 deliverables
Cluster 2 Prep and Stage 3 deadlines, Cluster 2
deadlines
July 2024 Survey Cluster 1 Stage 2 deliverables, Project
Feedback management and communication
Fall 2024 Info. Session Cluster 2 Volumes No. of applications, congestion
risk, Stage 1 deadlines

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Session Close-Out

• We want to thank you for attending the Cluster Assessment

Process stakeholder information session and we would
appreciate your feedback on the session
• Launch poll
– The purpose of the session was clear
– The information was presented in a clear manner
– The presentation content was clear and informative
– I found this session valuable
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Thank you

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