Many questions remain as Alberta lifts pause on renewable energy project approvals
Edmonton, Alberta, February 28, 2024—The Canadian Renewable Energy Association (CanREA) is pleased to see the end of Alberta’s moratorium on renewable energy project approvals on February 29, as announced today by by Alberta Premier Danielle Smith and Minister of Affordability and Utilities Nathan Neudorf.
That said, CanREA remains concerned about the considerable level of post-moratorium uncertainty that remains for new projects in the province.
The industry is eager to resume after a seven month pause on renewable energy project approvals that created a climate of uncertainty with negative consequences for investor confidence in Alberta.
“While the Pause has lifted, there remains significant uncertainty and risk for investors wishing to participate in Canada’s hottest market for renewables. It is critical to get these policy changes right, and to do so quickly,” said Vittoria Bellissimo, CanREA’s President and CEO.
Alberta currently leads Canada in new renewable energy development, representing more than 90% of Canada’s growth last year alone. While the Pause did not affect operational projects or projects already in construction, the impact of the moratorium will be seen in the coming years.
Over the past seven months, CanREA participated actively in the Alberta Utilities Commission (AUC) Inquiries while continuing to meet with Premier Smith, Minister Neudorf and his staff to create a greater understanding of the importance of this industry in Alberta and clarify the consequences of the pause.
“CanREA will continue to consult with the AUC and encourage the Province to provide clarity on policy changes that will enable paused projects to move forward, in a manner that will restore investor confidence in Alberta,” said Evan Wilson, Vice President of Policy—Western Canada and National Affairs at CanREA.
CanREA is pleased with policy announcements on the issues of crown lands, municipal participation and reclamation security, but concerned about the announcements on agricultural land bans and “pristine viewscape” setbacks. Wind energy and solar energy have a long record of co-location with productive agricultural land use. CanREA will work with the government and the AUC to seek opportunities to continue these beneficial approaches.
CanREA is also pleased that our push for renewables on crown lands has come to fruition. We are happy for the opportunity to expand province wide, to increase geographic diversity, decrease pressures on agricultural land, and make more efficient use of the transmission system.
Regarding reclamation security, CanREA members understand that Albertans expect developers to honour commitments to reclamation. This is why our members already make commitments to reclamation security. CanREA is pleased that the government decision matched our recommendations and that, going forward, reclamation security can continue be allocated to landowners if those landowners so chose.
CanREA also accepts that municipalities, as the elected voices of their communities, have the opportunity to participate in the process.
However, it is disappointing that the government has decided to put some parts of the province off-limits for renewable energy projects via “pristine viewscape” setbacks. This decision means that local communities and landowners in these regions will miss out on the benefit of renewable projects, specifically the tax revenues and lease payments associated with renewables.
CanREA will continue to advise in upcoming consultations to support better outcomes, including the grandfathering of projects on sites that have already been selected, to avoid costly consequences for all parties. We will urge the government to reconsider their land-use bans for “pristine viewscapes,” or to provide opportunities to mitigate these blanket restrictions.
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.
Quotes
“While the Pause has lifted, there remains significant uncertainty and risk for investors wishing to participate in Canada’s hottest market for renewables. It is critical to get these policy changes right, and to do so quickly.”
—Vittoria Bellissimo, President and CEO, Canadian Renewable Energy Association (CanREA)
“CanREA will continue to consult with the AUC and encourage the Province to provide clarity on policy changes that will enable paused projects to move forward, in a manner that will restore investor confidence in Alberta.”
—Evan Wilson, Vice President of Policy—Western Canada and National Affairs, Canadian Renewable Energy Association (CanREA)
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Canadian Renewable Energy Association
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About CanREA
The Canadian Renewable Energy Association (CanREA) is the voice for wind energy, solar energy and energy storage solutions that will power Canada’s energy future. We work to create the conditions for a modern energy system through stakeholder advocacy and public engagement. Our diverse members are uniquely positioned to deliver clean, low-cost, reliable, flexible and scalable solutions for Canada’s energy needs. For more information on how Canada can use wind energy, solar energy and energy storage to help achieve its net-zero commitments, consult “Powering Canada’s Journey to Net-Zero: CanREA’s 2050 Vision.” Follow us on Twitter/X and LinkedIn. Subscribe to our newsletter here. Become a member here. Learn more at renewablesassociation.ca.
