Providing clarity for renewable electricity development
Alberta’s government is setting a clear and responsible path forward for renewable project development to ensure our electricity grid is reliable, affordable, and sustainable for generations to come.
I am proud that Alberta continues to be a leader in responsible energy development, not only in Canada but around the world. With our competitive tax system, unique deregulated electricity market, and our government’s commitment to reducing economic barriers, Alberta is a destination of choice for investment.
Today, Alberta is almost fully transitioned from coal electricity generation. Natural gas continues to play an essential role in Alberta’s reliable electricity generation supply mix. However, we are seeing major growth in the energy sector, including increased energy storage capacity as well as new fuels and technologies in generation facilities such as hydrogen, biomass, geothermal, and carbon capture. This growth will underpin Alberta’s plan to get to a reliable and affordable carbon-neutral power grid by 2050.
The rapid pace of development in the renewables sector, however, created issues on a number of fronts.
We heard Albertans concerns surrounding reclamation requirements, land use and siting of the projects, the role of municipalities in the approvals process, and the long-term reliability of Alberta’s electricity supply mix. Just this past January, we witnessed a province-wide grid alert that highlighted these concerns, particularly on the reliability of renewable power generation and the need for dispatchable electricity.
Our government’s top priority is to listen to Albertans concerns and provide clarity to investors. That’s why we directed the Alberta Utilities Commission (AUC) to implement a brief pause on approvals for new renewable power last summer so they could conduct a proper inquiry into these concerns.
That pause has now been lifted, and the AUC has provided the first of two reports on their findings, specifically with respect to land issues. I thank everyone who provided their input during the inquiry’s rigorous consultation process. We are committed to continue listening to Albertans on this issue.
Based on the AUC’s finding, our government is working on five policy and regulatory changes to clarify the rules for renewable energy development. These include taking an agriculture first approach, making developers responsible for reclamation costs via bond or security, and establishing buffer zones around protected areas and pristine viewscapes.
They also include continuing meaningful engagement on the use of Crown Lands and developing changes to Alberta’s Transmission Regulation, including how transmission costs are allocated.
Additionally, municipalities will be granted the automatic right to participate in AUC hearings involving renewable power projects – and our government strongly supports this change.
These changes will provide clarity around renewable project developments to ensure Alberta’s electricity grid is reliable and affordable while also protecting the environment, property rights and improving investor confidence.
To ensure affordable, reliable, and sustainable electricity for future generations, it’s critical that we adopt a more integrated and cohesive planning approach to renewables development going forward.
This is the rationale behind the changes we are making.
We will continue listening to and updating Albertans over the weeks and months ahead.