Reinventing a century-old legacy
Few power generators can claim the operational heritage of TransAlta Corporation, which has been delivering electricity since 1911 – predating even the famous Calgary Stampede in its hometown. This deep-rooted history is now proving to be a strategic advantage as the company navigates one of the most dramatic transformations in the power sector's evolution.
"The company's evolution really is reflective of the evolution of the province and the growth of the province," explains John Kousinioris, President and CEO of TransAlta Corporation. "We began with a hydro facility west of the city, and the company has developed over time, from hydro to coal to gas to renewables, and grew as the local community grew."
That evolution has accelerated dramatically in recent years. Since 2005, TransAlta has achieved a remarkable 77% reduction in emissions – a transformation that will be completed when the company shuts down its last coal-fired plant at the end of 2025. Today, the company operates a balanced portfolio that is half natural gas, half renewables.
Building for the 2030s grid
While celebrating past achievements, TransAlta is simultaneously investing in technologies designed to meet future grid needs. Projects like the 900-megawatt Brazeau pumped hydro storage facility represent the company's vision for providing 24/7 clean power solutions.
"They are projects that we see as being more for the 2030s than today," acknowledges Kousinioris. "They have value in two respects. If you took the pumped hydro and matched it with renewables, you could provide a shaped clean power solution for industry, but it's pricey."
These multi-billion-dollar projects serve dual purposes: enabling renewable energy integration while providing grid-scale storage capabilities. The strategic patience required reflects TransAlta's long-term perspective on market evolution.
"We believe that electrification is going to continue,” says Kousinioris. “We think load will continue to increase. We think our customers, over time, are going to want responsible and sustainable increasingly decarbonized generation."
"Our advantage isn’t just scale — it’s our ability to move fast, structure flexibly and meet emerging digital demand with confidence."
John Kousinioris, President and CEO, TransAlta Corporation
Capturing the AI opportunity
AI and digital infrastructure are reshaping electricity demand - not only in scale, but in speed and structure. TransAlta’s strategy is focused on delivering “speed to power” by leveraging its existing merchant portfolio, strategic land positions and interconnection-ready sites to serve this emerging load.
With data centers now targeting grid-based solutions, TransAlta’s portfolio provides optionality: shorter timelines, flexible structuring and proximity to major demand hubs. The company is focused on a multi-phase approach, with the first phase being focused on repurposing and optimizing its assets to achieve speed-to-power for its clients, followed by potential greenfield builds as demand grows.
This reflects a broader strategic posture: building value not just through development, but by acting quickly and credibly in complex, fast-evolving markets.
Navigating policy and market turbulence
TransAlta's multi-jurisdictional presence across Canada, the United States, and Western Australia provides both diversification benefits and unique insights into regulatory trends.
"I think we've actually gotten to a place where we sort of see change as being a bit of a steady state for us," notes Kousinioris. "It doesn't almost matter what market you're in – each of them is in a state of continual evolution."
Supply chain challenges add complexity. Extended lead times for critical equipment combined with pricing uncertainty create significant planning challenges. "It can take years to get a transformer, years to get a turbine. What is the price of the turbine going to be?"
" You can’t meet 2030s load with yesterday’s playbook — that’s why we’re investing now.”
John Kousinioris, President and CEO, TransAlta Corporation
Strategic capital deployment
TransAlta's recent $450 million CAD green note issuance, which was nearly three times oversubscribed, demonstrates continued investor appetite for the company's transition strategy.
The company's M&A strategy focuses on the Western United States, leveraging its substantial energy marketing capabilities.
"We do see opportunities all the time," explains Kousinioris. "Candidly, it's a lot more cost effective to buy existing steel in the ground today than to actually build new."
This approach extends to the company's $175 million US investment in Nova Clean Energy, combining Nova's development capabilities with TransAlta's construction, operations, and trading expertise.
Industry transformation challenges
Looking ahead, TransAlta identifies several industry-wide inflection points. Load growth represents the most significant tailwind, with AI-driven demand joining traditional electrification trends. However, this growth occurs against supply chain constraints, policy uncertainty, and increasing community engagement requirements.
"I think the days of building things easily, without local opposition, have changed," observes Kousinioris. "The time to develop things and really engage with local communities is going to increase over time."
This evolving landscape reinforces the value of TransAlta's asset optimization strategy and its focus on working within existing communities where the company has established relationships and operational track records.
