Originally published Oct. 1, 2025 at The Narwhal. Read the full story here.

Big money has some big concerns about investing in Alberta’s electricity market.

A report commissioned by the Alberta Electric System Operator relied on interviews with eight unidentified “major financial institutions” to gauge reaction to the operator’s massive overhaul of the provincial electricity grid. Financial institutions are critical to loaning money to electricity generators, including renewable energy projects. Just three of the companies in the report account for almost $9 billion invested in Alberta’s market.

The report shows those investors are nervous.

“Financial institutions emphasized that their prior willingness to support Alberta’s [electricity market] was based on a long-standing perception of the province as a stable and predictable jurisdiction,” it reads.

“That perception has been significantly undermined in recent years due to the sheer volume and pace of regulatory and policy changes.”

Investors highlighted a long list of things adding to their uncertainty. From the renewable energy moratorium in 2023, to federal clean electricity regulations, interim steps to curtail market power for big generators in Alberta, changes to transmission planning, carbon pricing shifts and now the major market reforms, known as the Restructured Energy Market.

“This climate of uncertainty has increased the cost of capital, reduced appetite for new investments and led to delayed or cancelled projects,” reads the report, authored by consulting firm Morrison Park Advisors. “Some lenders reported that projects in advanced financing stages were paused or abandoned altogether in response to recent announcements.”

The report says the slowdown in project development was already underway, but the new plan for the electricity market “appears to have accelerated this trend.”

The system operator said it believes investors will embrace the new market.

“The Alberta Electric System Operator welcomes [Morrison Park Advisors’] summary of discussions with financial institutions investing in Alberta, which indicated general support for efforts to strengthen investment signals through market reforms,” a spokesperson said in response to questions from The Narwhal. “Notably, no institution reported that the Restructured Energy Market introduces barriers to future investment.”

While investors did express hope “improved clarity and thoughtful adjustments” could address many of their concerns, they also made it clear that will require transparent consultation and predictable changes.

READ THE FULL STORY AT THE NARWHAL.