A wind turbine is shown at a wind farm near Pincher Creek, Alta., on March 9, 2016.Jeff McIntosh/The Canadian Press
Swaths of land in Alberta will be barred from hosting renewable power projects under sweeping new rules that will govern the industry.
The changes, announced Wednesday by Premier Danielle Smith and Utilities Minister Nathan Neudorf, are the culmination of a ban on renewable approvals that lasted almost seven months. Details of many of the rules have yet to be ironed out. But the industry says the mountain of new red tape being introduced by the government will stymie renewable development in Alberta, which led sector growth in Canada in 2023.
The province announced the renewables moratorium in August last year. It ordered the Alberta Utilities Commission (AUC) to halt approvals for all renewable projects – be they solar, wind, geothermal, biomass or hydro – and launch an inquiry into various issues including where projects can be built, rules regarding clean-up and how renewable power fits into Alberta’s grid. The renewable sector was not consulted before the pause, and raised concerns that unprecedented government intervention into the multibillion-dollar sector would stoke uncertainty and stifle investment.
The AUC split its review into two separate groups. Wednesday’s announcement deals only with the first set of issues, which includes land use, reclamation and viewscapes.
Under the changes, Alberta will ban new projects from private property deemed to have excellent or good irrigation capability, unless a project proponent can demonstrate that crops or livestock can co-exist on the site alongside the renewable generation infrastructure.
When it comes to reclamation, developers will be responsible for eventual clean-up costs via a bond or security, paid to the government. They will also have the option to negotiate directly with landowners on reclamation costs, but will have to provide “sufficient evidence” to the AUC for such a deal to be accepted.
Buffer zones of a minimum of 35 kilometres will be introduced around protected areas, or whatever the government deems “pristine viewscapes.” New wind projects will not be permitted within those zones, and other forms of renewables may be subject to a so-called “visual impact statement” before approval.
Ms. Smith said the change would ensure that Alberta doesn’t sacrifice future agricultural yields, tourism dollars or “breathtaking viewscapes” to rush through renewable development.
“Renewables have a place in our energy mix, but the fact remains that they are intermittent and unreliable. They are not the silver bullet for Alberta’s electricity needs. And they are not the silver bullet of electricity affordability, because each new development risks driving up the transmission costs and makes Alberta’s utility bills even more expensive,” she told media.
Mr. Neudorf said he believes the changes are fair for the renewables sector, and will strengthen investor certainty by providing clear expectations for agriculture and energy.
But when asked if the same rules would apply to development of other natural resources such as coal, logging or oil and gas, he said only “that is a potential, but it’s up to those regulators in those industries to determine that.”
The AUC will be charged with other duties regarding viewscapes too, including hearings to determine the appropriate distance between renewable infrastructure and neighbouring residences, and conducting site visits for proposed projects.
Municipalities will also see changes under the new rules, including the right to participate in AUC hearings, which was not previously the case. And they will be able to request cash to cover the cost of taking part in those hearings.
Jason Wang, a senior analyst at the Pembina Institute, an environment think tank, said the new rules are fraught with subjectivity and will only serve to add more uncertainty to a previously booming investment climate for renewables in Alberta. The concept of “pristine viewscapes,” for example, has no legal description and appears to have no bearing on oil and gas facilities within the province.
“It might just be like a back-door ban – a soft moratorium,” said Mr. Wang, who specializes in electricity markets and regulatory reform for utilities.
Industry officials have warned that onerous new restrictions will result in Alberta being seen as unfriendly as jurisdictions compete for global capital tied to net-zero goals.
Evan Pivnick, clean energy program manager at Clean Energy Canada called the announced an “uncertainty bomb” for renewable project investors and developers in Alberta.
“Until last year, the province was the undisputed renewables capital of Canada,” he said in a statement. “Now Alberta is undermining its own success, making it one of the only jurisdictions in the world trying to frustrate the deployment of cheap, clean, renewable electricity.”
Corporate power deals in the province have supported nearly $6.3-billion in new capital investment since 2019, according to Business Renewable Canada. That equates to 12,400 gigawatt-hours per year of energy, production of enough energy to power 1.7 million homes. The vast majority of those deals have been in rural parts of the province where they have provided about $28-million in revenues to municipalities.
While many municipalities have welcomed the windfall to their coffers, some have also raised concerns about friction between using land for crops versus massive solar installations or wind farms.
And there were worries that – much like what has happened with oil and gas – they would be left dealing with the remnants of wind turbines or solar panels if projects failed or companies went bankrupt.
