Chapter 1: Alberta's Energy Landscape

Over the past year, Alberta has seen a wave of optimism regarding its potential as a leading renewable energy producer in Canada, largely driven by a report from Oslo-based Rystad Energy. This report suggested that Alberta, known for its oil sands, could emerge as the country's primary generator of renewable energy. Various media outlets across Canada celebrated this news, highlighting expected investments amounting to billions of dollars and the creation of thousands of jobs.

Calgary Economic Development, an organization aimed at attracting business, positioned Calgary as a frontrunner in the global energy transition. They emphasized that while Alberta holds the title of Canada's largest producer of oil and natural gas, it also possesses significant resources in wind, solar, bioenergy, and geothermal energy.

However, this dual identity creates a perplexing cognitive dissonance. The promotional materials feature images of wind turbines and solar panels, showcasing Alberta’s favorable conditions for renewable energy. Yet, they also highlight the province’s status as home to the third-largest crude oil reserves globally. The energy-intensive process of extracting oil sands, which involves burning vast amounts of natural gas and using large quantities of water, remains conspicuously unaddressed.

Alberta Premier Danielle Smith announces end of ban on renewable energy projects | FULL

In 2019, the Pembina Institute launched the Business Renewables Centre Canada (BRC) in Calgary to facilitate large-scale renewable energy projects across the nation. The BRC aimed to capitalize on Alberta’s deregulated energy market, allowing organizations to purchase energy directly from providers without the interference of a centralized utility. A year ago, the BRC projected that Alberta would see $3.7 billion invested in renewable construction by 2023, creating approximately 4,500 jobs.

This focus on Alberta is understandable, given the distinct energy policies of each province. British Columbia, Manitoba, and Quebec primarily harness hydroelectric power, while Ontario's energy mix includes a significant amount of nuclear energy and has faced controversies regarding renewable contracts. In contrast, Alberta had positioned itself as a beacon of hope for new wind and solar projects, despite the high costs associated with interconnection to the province's transmission grid.

Chapter 2: The Current Setback

Unfortunately, recent policy decisions have cast doubt on the future of these renewable initiatives. The government’s moratorium on approving wind and solar farms larger than one megawatt for seven months poses a significant threat to 15 previously approved projects, jeopardizing investments and delaying potential developments. Additionally, the uncertainty surrounding 91 other projects currently in various stages of planning and design has left stakeholders in limbo.

The current political landscape is considerably more challenging than it was when the oil-and-gas-friendly party regained power in 2019. At that time, regulatory processes were slow but still allowed for progress. Renewables had emerged as a rare piece of positive news amidst the struggles of a province heavily reliant on oil and gas, providing a stark contrast to ongoing issues such as orphaned wells and the environmental repercussions of oil sands extraction.

Historic signing drives Alberta towards decarbonization – July 8, 2024 - YouTube

The recent decision to halt renewable energy project approvals has raised eyebrows. Questions surrounding the rationale include concerns over agricultural land, visual impacts, reclamation responsibilities, the role of municipalities, and system reliability. However, these reasons lack substantiation upon closer examination.

For instance, Alberta has more agricultural land than any other province except Saskatchewan, yet the proposed solar farms would occupy only a fraction of this area. Wind farms, too, can coexist with agricultural activities, utilizing land that is often less suitable for farming.

The argument regarding scenery is questionable, especially when considering the significant environmental degradation caused by oil sands operations, which cover a much larger area. Furthermore, issues related to reclamation security seem misplaced when compared to the numerous unreclaimed oil and gas wells across the province.

In terms of municipal roles, many municipalities are eager for new revenue sources and would welcome renewable projects to counteract the financial losses from oil and gas taxes. Lastly, the claim regarding system reliability is unfounded, as Alberta has successfully integrated renewables into its grid without significant issues, learning from the experiences of other jurisdictions.

Ultimately, the current government’s decision to impose these restrictions seems politically motivated, reflecting a reluctance to embrace the clean energy transition. This move raises concerns about Alberta’s commitment to sustainable energy development and its capacity to adapt to the evolving energy landscape.