The Canada Infrastructure Bank (CIB) is providing Alberta electricity transmission companies, AltaLink and ATCO Electric, with a loan of $208.16 million to construct a transmission line, the Central East Transfer-Out project, in the counties of Red Deer, Lacombe and Stettler.
The loan will help develop a 130 km high-voltage power line, which is required to reinforce and strengthen the reliability of the electrical grid and increase access to available renewable electricity generation in the region. This investment will save Alberta ratepayers approximately $135 million over the 30-year financing of the project.
According to the Alberta Electric System Operator (AESO), the transmission line is required to relieve power congestion and distribution capabilities in the area. The project will supply over 750 MW of electricity to the grid.
The new transmission infrastructure will help alleviate grid congestion and unlock the capacity for new renewable energy sources to come online to reduce the province's GHG emissions. The CIB's flexible loan will allow AltaLink and ATCO to construct and operationalize the transmission infrastructure at a lower financing cost, reducing the cost to Alberta ratepayers.
This is CIB's first investment in energy transmission, under its $10 billion Clean Power priority sector, which is dedicated to addressing financing gaps in new projects such as renewables, transmission, district energy systems and energy storage. The CIB financing depends on customary closing conditions, including approval by the Alberta Utilities Commission
