Albertans love to think of themselves as innovative and resourceful.
And we see ourselves as the energy powerhouse of Canada, supplying the rest of the country with our abundant energy resources.
In the past, our love of energy was mainly in the form of oil and gas, and then in the last decade, with our abundant sun and wind, we became the renewable powerhouse of Canada.
The boom in renewables in Alberta was fueled by our abundant wind and sun and the province’s deregulated electricity system, allowing plenty of private investment and development in energy projects.
In 2022, Alberta was responsible for over three-quarters of all wind and solar projects established in the country, with renewables contributing about 30% of the province’s electricity production.
However, the renewable boom went bust in August 2023 when the Alberta government imposed a seven-month moratorium on new large-scale wind and solar power projects.
Only renewable projects approved before the moratorium were allowed to continue.
Everything else was put on hold, affecting 118 projects worth $33 billion.
Why the Pause?
Premier Danielle Smith explained this moratorium as necessary for reasons that varied as much as the direction of wind gusts on the prairie.
First, she blamed the federal government.
Smith wanted and continues to want backup power plants that use natural gas “when the wind isn’t blowing, or the sun isn’t shining.” She said the federal government did not want more natural gas plants in Alberta.
After that argument fell flat, Smith then said that province’s energy regulators, the Alberta Utilities Commission (AUC) and the Alberta Electric System Operator (AESO), were the ones who asked for the renewables pause.
But that statement was proven to be untrue.
Other reasons Smith cited for the pause were to investigate reliability issues with renewables, the impact of renewable projects on agricultural lands and ‘viewscapes’ and the necessity for mandatory reclamation regulations.
Critics argued against much of this reasoning and wondered why there were different rules for oil and gas versus renewables.
What Is The Result?
As a result, Alberta’s once-thriving renewable energy industry faced a sudden, surprising and jarring halt, with no one in the renewables sector receiving a warning before the pause.
Alberta’s renewable pause has significantly damaged its reputation as a fertile ground for renewable investments.
Thomas Timmins, a commercial lawyer specializing in renewable energy, expressed concern about the province’s future in attracting solar investment, given the competitive nature of the global industry.
“Alberta hit pause in the midst of a growth curve, and Alberta was the No. 1 destination in Canada for solar investment,” Timmins told CBC News.
Some projects, like EDP Renewables Sharp Hills Wind Farm near Medicine Hat, proceeded unaffected due to prior approval, but many other projects have faced delays or cancellations.
While continuing with the Sharp Hills project, EDP Renewables highlighted the oddity of targeting specific technologies for a moratorium and expressed concerns about the backlog and delays in project development.
Where Is This All Headed?
When the renewables pause is lifted at the end of February, the renewables industry is worried the province will hamstring the development of renewables in favour of oil and gas development.
Premier Danielle Smith prefers “dispatchable power” sources such as nuclear, hydroelectric, geothermal, and natural gas over wind and solar, citing renewables intermittency as a drawback.
Smith recently hinted that new renewables projects would only be approved if there is a ‘backup’ source of dispatchable power for those times “when the sun does not shine and the wind does not blow, “ a sentiment she continually repeats.
Smith’s answer to reducing greenhouse gases is to burn natural gas to create hydrogen and stuff all those nasty carbon emissions from the process in vast underground reservoirs in Alberta using carbon capture (CCUS) technology.
The problem is that CCUS is an unproven and expensive technology at the scale required to implement Smith’s vision.
Seven Alberta First Nations have also expressed apprehensions about the potential human and environmental impacts of an unproven underground carbon transport and storage proposal on their traditional lands.
Smith’s stance suggests a continued push towards more traditional fossil-fuel-based energy sources, despite the rapidly growing global push for renewable energy and the recent agreement at COP28 by two hundred countries–including Canada–to transition away from fossil fuels.
The future of renewable energy in Alberta remains uncertain as the government prepares to introduce new regulations that favour oil and gas over renewables.
Companies like BluEarth Renewables have already redirected their investments to other regions, signalling a potential loss of future renewable projects to other provinces or countries that offer more favourable conditions.
The likely upcoming decision to prioritize traditional fuels over renewable sources could have far-reaching implications for Alberta’s energy landscape, economic growth, and environmental commitments.
The world is increasingly moving towards cleaner, sustainable energy solutions.
Alberta’s recent rear-view mirror pivot raises questions about its role in this global transition.
