It's time for Alberta to back renewable energy
Province must provide clarity, stability after unnecessary pause in approvals
This week, the Alberta government will lift its finger from the pause button and restart renewable-energy project approvals. It has been seven months since this announcement surprised the entire industry.
Back in August, we at the Canadian Renewable Energy Association (CanREA) were already engaged in many productive conversations in Alberta related to land use, reclamation security, agricultural practices and the role of municipal governments in renewable-energy project development, the main issues cited by the government as the reasons behind this pause.
Since then, we have continued to work co-operatively with the government to explain the negative ramifications of the pause and to propose a path forward on all these reforms. We are now awaiting their plan, having been personally assured by the premier and others that this pause will lift on time and that the next steps on policy will be made clear.
It is possible to address concerns about the regulatory landscape without risking billions of dollars in investment, along with hundreds of millions in property tax and landowner lease payments that may not otherwise be available to Albertans. The signal sent to investors by the pause requires that government now accelerate efforts to provide stability and clarity.
Some context is important here: Alberta continues to be the undisputed Canadian leader in renewable energy deployment. In 2023, Alberta accounted for over 90 per cent of Canada's total deployment. In 2022, Alberta represented more than 75 per cent.
Renewable energy in Alberta has long been a good-news story for Canada's energy powerhouse province. And there is tremendous potential for even greater success. To realize this potential, we need a responsible, inclusive and thoughtful approach in Alberta. We recommend:
No blanket bans on land use: The premier has openly speculated on the need to ban renewable energy in certain regions of the province to defend agricultural lands and “pristine viewscapes.” But it is evident, from our collaboration with the Rural Municipalities of Alberta, that local communities actually welcome renewable investment that reflects and accommodates local priorities. Blanket land-use bans restrict the opportunities for these communities while limiting landowner rights unnecessarily. The solution here is clear: more rural participation in the decision-making process. Reasonable reclamation security: CanREA's member companies understand Albertans' concerns about reclamation. As a result, developers already provide landowners with security to ensure proper, timely decommissioning. Government should move forward to strengthen these practices, with transparency and third-party cost estimates, rather than moving forward with punitive, arbitrary approaches that negatively impact landowners.
No major overhaul of the market design: We have been participating personally in ongoing processes examining electricity market reform for Alberta. With several government-directed approaches on the table, many market participants, including generators and customer groups, have signed a letter recommending only minor reforms to our energy-only market. A centrally planned, government-driven approach would be an expensive mistake.
Fair and transparent transmission policy: Alberta customers deserve to receive value for the grid they have already invested in. We need to clearly understand the risks and costs of any proposed changes to the allocation of transmission costs before making major changes. Renewable energy alone should not shoulder the costs of the energy transition.
No retroactive policy change: Retroactive policy change and retroactive cost allocation will result in negative impacts to investments that were made in good faith in this province. Any negative impacts to existing facilities will severely decrease investor confidence in Alberta.
Alberta needs to compete in a fast-moving global marketplace, characterized by labour mobility and an international supply chain. We need policy certainty to attract the billions of dollars of capital required to transform Alberta's electricity grid and to support the government's stated aspiration of a net-zero economy. And we need the policy in place to support this.
After a long and unnecessary pause, it is time for the government to press play on renewables.