A clean energy think tank says Alberta’s pause on approvals for new renewable energy projects is affecting 118 projects worth $33 billion of investment.
In a new report, the Pembina Institute says those projects would create enough jobs to keep 24,000 people working for a year.
It says those projects represent what could be $263 million in local taxes and leases for landowners in 27 municipalities.
Earlier this month, the province’s United Conservative government said it would pause all renewable energy approvals until February as it considers issues such as land use and reclamation.
The utilities regulator said Wednesday it is to continue to examine projects, but won’t issue any new approvals.
The move has stunned Alberta’s booming renewables industry, with several companies with projects in the works saying the uncertainty is causing them to look elsewhere.
Report methodology
The report looked at various economic impacts the renewable projects could have.
“Renewable projects are often located on privately-owned land, obtained through a bilateral agreement with the project developer and the landowner,” the report reads.
“Renewable projects generate revenue for both the landowner — through land lease payments — and the municipality in which they are located — through municipal taxes.”
The analysts used a “job-year metric” to estimate the number of jobs the projects could create.
“That is to say, these are not peak construction jobs, but rather the equivalent of one person being employed one year full-time,” the report explains.
The report considers all project proposals in the Alberta Electric System Operator’s connection process that have not yet received approval from the Alberta Utilities Commission (AUC).
Many of those projects are in early stages and would not seek AUC approval until after the provincial moratorium expires on Feb. 29, 2024.
The report nonetheless considers those early-stage projects to be affected by the moratorium, given the uncertainty it has created for the industry, while noting “the projects that are in the later stages are the most at risk.”
In an emailed statement, Minister of Affordability and Utilities Nathan Neudorf said no projects are being cancelled and only 13 projects before the Alberta Utilities Commission are directly affected by the pause.
“There are 105 projects inaccurately listed by interest groups that are months, maybe years, away from even getting before the (commission),” Neudorf wrote. “The next construction season will be available for approved projects.”
Minister of Affordability and Utilities Nathan Neudorf said no projects are being cancelled. (Nathan Neudorf/Facebook)
New Democrat Opposition energy critic Nagwan Al-Guneid, who worked for years in both fossil fuels and renewables, said there are already reclamation provisions in existing legislation. Consultations on land use were already ongoing, she said.
“You can still be open for business while going ahead with these consultations,” she said. “A moratorium is not a solution.”
Al-Guneid pointed out the International Energy Agency says investment in renewable energy this year is projected to reach $2.3 trillion worldwide, with solar investment outpacing fossil fuels for the first time.
Having to wait until February for a report that might contain unknown new costs and regulations is not attracting any of that money to Alberta, she said.
“The reality is that there is a global transformation,” Al-Guneid said. “A responsible government needs to plan for all scenarios.”
Meanwhile, Alberta Premier Danielle Smith was in Banff, Alta., on Thursday speaking to the Canadian Energy Executive Association.
She said Alberta producers are reducing the amount of greenhouse gases they emit during production, although she didn’t mention that production only represents about 20 per cent of the carbon released by a barrel of oil.
“We don’t need a just transition in Alberta because we don’t intend to transition away from oil and gas,” Smith said.
TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.
