The province has struck a deal with three major power producers to formally end coal-fired electricity by 2030.

Environment Minister Shannon Phillips says Alberta will pay three major power producers a total of $97 million a year over the next 14 years.

The money is to compensate them for the shutdown and to help them transition to cleaner forms of energy.

The payments are to be spread amongst TransAlta, Capital Power and ATCO, and are to come out of the current carbon levy on heavy emitters.

There are 18 coal-fired electricity plants in Alberta, and all but six are already scheduled to shut down before 2030.

As part of the deal, the power producers will keep their headquarters in Alberta, will continue to invest in the province and will provide support to communities affected by the transition.