By now, you’ve probably heard about the Alberta government’s 7-month pause on approving any new wind or solar projects.
The announcement caused quite a kerfuffle on both sides of the fence for and against the moratorium.
Let’s take a deep dive into the issue.
First, the Baffling:
Alberta is one of Canada’s sunniest and windiest places, so we have the natural resources to make Alberta, not only a Canadian leader in wind and solar but a global leader.
When hasn’t Alberta strived to be the best? Isn’t that what the Alberta Advantage is all about?
Do we have the political leadership needed to diversify the Alberta Advantage from the current energy production to cleaner renewables?
Many were hopeful. That’s why Premiers Smith’s announcement in early August surprised many, especially businesspeople developing multi-billion dollar wind and solar farm projects; many had projects in the cue for approval.
Why now?
Why so suddenly?
Then, the Waffling:
Danielle Smith has given two different versions of the reasoning behind her abrupt renewables pause.
In her first version, she blames the pause on the federal government. That’s not surprising. In fact, it’s becoming Smith’s schtick.
Smith wants backup power plants that use natural gas when the wind isn’t blowing, or the sun isn’t shining.
However, she says the federal government does not want more natural gas plants in Alberta.
Smith argues that she can only add more wind or solar with a reliable backup system like natural gas.
In her second version, Smith said that energy regulators, the Alberta Utilities Commission (AUC) and the Alberta Electric System Operator (AESO), were the ones who asked for the break.
Smith claims that the regulators asked for a break for two main reasons:
- To address stability issues with the electric grid.
- To figure out how to clean up and handle wind and solar projects when they end their life.
A recent article by CBC News provides evidence that Smith’s stated reasons aren’t the reasons given in the actual documents from the Alberta Utilities Commission (AUC) and the Alberta Electric System Operator (AESO).
The Electric System Operator letter mentions a “six-month pause” but never specifically asks for it.
Also, the AESO never mentioned the problems with the grid and backup powers Smith referred to when pointing fingers at the feds.
Hmmm.
Economic Fallout?
The Utilities Commission document did raise concerns about building power plants on good farming land and how to handle the cleanup after the power plants are done. But, despite Premier Smith’s claims, the AUC never asked for a renewables pause.
While the government says only 15 projects were waiting for approval before the shutdown, the Pembina Institute says this pause affects 118 projects worth up to $33 billion. These projects could have provided lots of jobs.
Stopping these projects might also make electricity more expensive because Alberta’s wind and solar energy are cheaper to start up than gas-fired electricity.
Vittoria Bellissimo from the Canadian Renewable Energy Association believes new energy storage solutions have replaced the need for gas-powered backup.
She told CBC News, “The Premier and others are under the impression that you have to have natural gas to make the system work, but you don’t. You need any type of resources that can time shift, and there’s lots of them out there,”
Alberta is a leader in renewables, with 17 percent of its power coming from wind and solar in 2022.
The Pembina Institute reports that since 2019, corporate buyers have signed deals for wind and solar energy to support nearly $5 billion of investment in Alberta, creating 5,430 jobs.
The Case for Pausing Renewables
While Smith’s rationales for her new policy are questionable, many Alberta have pointed out the need for stronger regulations in the renewables industry.
Rural residents and municipalities are worried about a repeat of the abandoned oil and gas well fiasco that has left taxpayers and municipalities on the hook for cleanup.
Jason Schneider, a county reeve in Vulcan County and Area Director for the Rural Municipalities of Alberta, told the Edmonton Journal, “We’ve been burned by coal; we’ve been burned by gravel; we’ve been burned by oil and gas. In Alberta, the cheapest reclamation plan is bankruptcy. And that’s not a great solution because somebody ends up holding the bag.”
According to Schneider, there are still no provincial regulation mechanisms in place for reclamation and no money held in place from wind or solar companies for eventual cleanup.
Another concern Schneider expresses is that the province currently has no mechanism to prevent top farmland from being converted to wind and solar farms.
Critics have pointed out that buying or leasing productive farmland and turning these food-producing lands into solar and wind farms is cheap. High lease rates for city parking lots and the tops of city buildings make these less appealing options for renewable companies.
And with many farms failing due to heat and drought, selling off or leasing productive farmland to a wind or solar farm is a quick fix for mounting farm debt.
There is also a concern that wind and solar will invade ecologically sensitive areas, cause noise pollution and wreck Alberta’s pristine ‘viewscape.’
In an OP-ED, David Staples points out that even those who want renewables do not want giant wind turbines in their backyards.
In Europe, where solar and wind have a longer history, there is stronger regulation for where solar and wind installations can be located. But similar rules don’t exist in Alberta.
The Case for Not Pausing Renewables
Advocates for wind and solar solutions point out the hypocrisy of the moratorium.
They say the impacts of oil and gas development on farmland, the failure to clean up abandoned projects, inadequate reclamation rules and conversion of agricultural land are all long-time sore spots plaguing the oil and gas industry. Still, the government to date has been slow to act. They certainly have never imposed a blanket moratorium because of these gaps.
So, why is Smith’s government suddenly holding renewables to a higher standard?
They say it’s unfair. This, combined with the lack of consultation, is a slap in the face to renewable companies. For many, it reeked of favouritism to oil and gas.
For a government that is all about free-market, pro-business, and the reduction of red tape, the irony of such drastic government interference in the renewables industry has left many steaming mad.
The fact that the sudden announcement happened while tens of thousands of Canadians have been forced to evacuate their home is doubly ironic. Many Albertans believe it is time to speed up renewables and not slow them down.
The renewables industry also disputes Premier Smith’s characterization of the industry’s challenges. They argue that the industry is not the ‘wild west’ that opponents make it out to be. They say there are mechanisms to deal with the grid’s stability, and the existing approval mechanism is robust enough to weigh the interests of opposing parties.
Unlike the ongoing problem of abandoned, leaking oil and gas wells, the Canadian Renewable Energy Association argues that “orphaned” solar or wind farms are unlikely because wind and solar never dry up. The only upgrades they need are new parts that need to be swapped out about every 25 years.
Critics of the government’s renewables pause also point out many specific reasons why the pause is misguided and hurts Albertans.
They say the forced delay will:
- Cause immediate economic harm, including lost jobs from directly shelving 118 projects worth $33 billion.
- Sabotage Alberta’s advantage in the race to become Canada’s undisputed renewable energy leader.
- Damage Alberta’s reputation as a safe place to invest.
- Limit the options to add new electricity producers to Alberta’s grid, thus ensuring that electricity prices remain high, hurting the everyday working Albertans.
But, potentially, the most significant damage of the moratorium is the damage to many Albertans’ image of ourselves—that it is possible to be pragmatic about energy, concerned over the climate, and still be a major producer.
Is the pause on renewables the right thing to do?
What do you think?
