Alberta's Renewable Energy Moratorium Ends in Two Weeks

CALGARY — On February 29, 2024, Alberta’s seven-month moratorium on renewable energy development is scheduled to end. The Alberta Utilities Commission (AUC) is expected to make recommendations about land impact issues including land use, reclamation and “pristine viewscapes.” The Government of Alberta would then return with mandates for the sector’s development.

Is Alberta’s Renewable Energy Industry Being Treated Fairly?: How to assess the outcome of the Alberta Utilities Commission inquiry into the ongoing economic, orderly and efficient development of electricity generation provides seven criteria for evaluating the recommendations and decisions made on renewable energy development in the province through the AUC inquiry.

Our framework indicates the fairness of the AUC’s recommendations through companies’ ability to develop projects with willing landowners, reclamation security requirements, the municipal government approval and stakeholder intervention process, “pristine viewscapes,” access to lands held by the Crown in Right of Alberta, access to the grid, and access to Alberta’s open market.

The unprecedented moratorium itself unfairly targeted the renewable energy industry. Our research shows that the renewable energy sector is already being held to or considered for stricter standards than other land uses that are having a larger impact on the same issues that were cited for calling the moratorium. We look forward to seeing evidence that the renewable energy sector is being treated consistently and fairly with other Alberta land uses and is not subjected to stricter rules than other energy sectors that have a larger impact.

When the renewable energy moratorium ends, the Pembina Institute will be evaluating if the Government of Alberta made reasonable changes. especially with an eye to the fairness of the outcomes in relation to the lack of accountability awarded other sectors needing substantial reform. In doing so, we aim to understand if Alberta remains a highly attractive place for renewable energy investment and how the moratorium has impacted this.

Quotes

“Alberta’s renewable energy industry is a significant part of the Alberta energy sector, reducing the cost of electricity for Albertans, creating job opportunities and municipal tax revenues, and simultaneously substantially reducing emissions in Canada’s highest emitting province. By drawing in more investment into the sector, Alberta can save the average household up to $600 per year on their electricity bills. It is critical for Alberta to maintain a strong renewable energy sector to make electricity clean, affordable, and reliable.”

– Jason Wang, Senior Analyst, Pembina Institute

“While the moratorium itself unnecessarily targeted the renewable energy sector, the outcomes from the inquiry must be fair and not stricter than how Alberta has handled rapid energy sector growth in the past. Renewable energy development is already more restricted than the oil and gas sector despite having significantly less existing and potential consequences for the province. It should be a clear goal of the province to maintain its renewable resource advantage while scaling up its renewable energy growth to build a competitive low-carbon economy.”

– Simon Dyer, Deputy Executive Director, Pembina Institute

Quick facts

The moratorium has negatively impacted the renewable energy sector, affecting 118 projects representing at least $33 billion of investment.
New wind and solar are more cost effective than building more natural gas in most cases.
Over 90% of Canada’s wind, solar and energy storage additions in 2023 were in Alberta.
Since 2019, corporate power purchase agreements have brought in $6.4 billion in wind and solar investment, creating more than 6,000 jobs.
Decarbonizing the grid could save Albertans $600 per year in household electricity costs.

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Visit the Pembina Institute’s website to download a copy of Is Alberta’s Renewable Energy Industry Being Treated Fairly?: How to assess the outcomes of the Alberta Utilities Commission inquiry into the ongoing economic, orderly and efficient development of electricity generation.