Alberta has made great strides in adopting renewable electricity generation. In 2022, the province added 10 new wind facilities (1,349 MW combined capacity) and 17 new solar farms (402 MW combined capacity) to the grid. In 2023, Alberta accounted for 92% of renewable energy growth in Canada. Lastly, between 2024-2026, the AESO forecasts 30% of electricity supply will be from renewable sources. However, on August 3, 2023, the Alberta Government placed a moratorium on approvals for new renewable electricity generation projects over one megawatt. The pause is scheduled to last until February 29, 2024.
During this time, the Alberta Utilities Commission (AUC) will conduct two inquiries into the current policies and procedures for renewable electricity generation. The first inquiry was submitted on January 31, 2024, while the second inquiry is due on March 29, 2024.
Some of the points the AUC will review include:
- Development of power plants on specific types or classes of agricultural or environmental land
- The impact of power plant development on Alberta’s landscapes (e.g., national parks, provincial parks, culturally significant areas, and areas used for recreation and tourism)
- Mandatory reclamation security requirements for power plants
- Development of power plants on lands held by the Crown
- The impact of the increasing growth of renewables on Alberta’s generation supply mix and electricity system reliability
The intended result of the inquiry, according to a document from the Alberta Government, is to create an “appropriate balance between the development of renewables and various issues raised by Albertans, the AUC, and even renewable energy developers”.
Why did Alberta pause approvals for new renewable electricity projects?
According to the Alberta Government, the pause was primarily in response to growing concerns from municipalities and landowners on how renewable energy projects will use the land. The government also listed reliability concerns due to the province’s rapid transition from coal to renewable generation.
What happens to new renewable electricity projects?
Renewable companies can still submit applications to the AUC. However, the AUC is prevented from approving new projects until the pause period expires. Existing applications filed before August 3, 2023, will also continue to be processed.
Applications for new renewable power plants filed on or after August 3, 2023, must meet interim information requirements established by the AUC. The information covers agricultural land, viewscapes, reclamation security, and land use planning.
One point to mention is that the moratorium does not impact microgeneration projects.
What are the implications of Alberta’s pause on new renewable energy projects?
While the answer to this question is somewhat uncertain, there are several potential impacts of the moratorium. In 2016, Alberta introduced legislation that called for 30% of electricity in the province to be generated by renewable resources. The pause could impede the province from reaching this goal. According to the Canadian Renewable Energy Association, the pause has affected 8.3 GW of projects under development. Out of that total, 3.9 GW of projects may have come online in 2025, and 4.4 GW of proposed projects were in development. Additionally, the pause could deter investment in renewable electricity in Alberta. Previously, Alberta was the most attractive province in Canada for renewable electricity development. Depending on the results of the AUC inquiry, it may be harder for renewable companies to receive project approvals.
In the wake of the pause, Ontario is poised to become Canada’s new leader in renewable electricity development. On December 11, 2023, the Ontario Independent Electricity System Operator announced plans to bring 2,000 MW of renewable electricity generation to the province.
Will the moratorium affect electricity prices?
The answer to this question is quite subjective. In general, less generation equals less supply, which leads to higher prices in the long term. At the same time, there are several drivers of electricity prices in Alberta, so the pause may only have a minor impact.
New policies and procedures
A day before the moratorium was lifted, the Alberta government announced new rules on renewable electricity development in the province. The policy changes went into effect on March 1, 2024. The policy that garnered the most attention was the creation of a 35-kilometre buffer zone that will prevent wind farms from being developed on protected areas and “pristine viewscapes“. There is no clear definition of a pristine viewscape. However, according to Affordability and Utilities Minister Nathan Neudorf, it refers to “areas that are unobstructed, natural landscapes”. Projects within the buffer zone may have to undergo “visual impact assessments”.
Another significant policy update is banning renewable projects on Class 1 and 2 agricultural land (those with the best irrigation) unless evidence is provided showing renewables and agriculture can co-exist in the same area. Municipalities are now automatically given the right to participate in AUC hearings for renewable project approvals. They are eligible to request cost recovery for their participation. There are no policy changes for project approvals on Crown land. In the meantime, renewable project development on Crown land will be approved on a case-by-case basis. Updates to the Transmission Regulation will be made in the future. For the time being, renewable projects should expect changes to how transmission costs are charged.
