The End of Coal: Albertas coal phase-out

This case study examines Alberta's strategic phase-out of coal-fired electricity, initiated by the New Democratic Party (NDP) in 2015. The transition involves retiring over 40 per cent of the province's 2016 installed capacity by 2030, supported by a CAD 1.36 billion compensation package for power companies and CAD 45 million in just transition programming for workers and communities.

• In November 2015, the Alberta NDP government committed to a phase-out of coal power by 2030 and an economy-wide carbon price as part of its Climate Leadership Plan.
• The phase-out will result in the retirement of more than 40 per cent of Alberta's 2016 installed capacity and will lead to the de facto closure of local thermal coal mines due to low global prices and logistical transport difficulties.
• To secure the cooperation of privately owned power companies and avoid stranded capital, the government negotiated Off-Coal Agreements providing CAD 1.36 billion in cumulative payments through 2030, funded by industrial carbon taxes.
• Alberta's transition is supported by a substantial abundance of low-cost natural gas, which serves as a temporary 'greener' alternative to coal power.
• The provincial government implemented a 'just transition' strategy including a CAD 5 million Coal Community Transition Fund for economic diversification and a CAD 40 million Coal Workforce Transition Fund for income support, retraining, and pension bridging.
• To ensure electricity system reliability and attract the estimated CAD 15 billion in private investment needed to replace coal, Alberta is transitioning from an 'energy-only' market to include a capacity market, expected to be operational by 2021.
• The case for reform was driven by climate goals and local health concerns, with estimates that an accelerated phase-out would avoid nearly CAD 3 billion in negative health outcomes and prevent 600 premature deaths.
• Federal regulations act as a critical backstop; a 2012 regulation required coal plants to meet specific emissions standards or retire, and a 2016 announcement set a national coal phase-out date of December 2029.
• The thermal coal mining industry, specifically Westmoreland Coal Company, faced significant financial exposure and was excluded from the compensation agreements provided to power companies.
• Coal-to-gas conversions are viewed as a strategic intermediate step to reduce emissions more quickly than the 2030 deadline while avoiding the long-term risk of stranded assets associated with new 30-year natural gas plants.

APA

Vriens, L. (2018). The End of Coal: Albertas coal phase-out. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/alberta-coal-phase-out.pdf

Chicago

Vriens, Lauren. The End of Coal: Albertas coal phase-out. International Institute for Sustainable Development, 2018. https://www.iisd.org/system/files/publications/alberta-coal-phase-out.pdf.

Wikipedia

{{cite report |last1=Vriens |first1=Lauren |title=The End of Coal: Albertas coal phase-out |publisher=International Institute for Sustainable Development |date=May 2018 |url=https://www.iisd.org/system/files/publications/alberta-coal-phase-out.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{vriens2018end, author = {Vriens, Lauren}, title = {{The End of Coal: Albertas coal phase-out}}, institution = {International Institute for Sustainable Development}, year = {2018}, month = may, url = {https://www.iisd.org/system/files/publications/alberta-coal-phase-out.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }