The nearly seven-month moratorium on renewable energy project approvals by the provincial government of Alberta in western Canada has ended. The Alberta government began suspending approvals of renewable energy projects starting in August 2023, when the province’s Public Utilities Commission began an investigation into land use and reclamation.
After lifting the ban on February 29, Alberta Premier Danielle Smith said the government will now take an “agriculture first” approach to future renewable energy projects. It plans to ban renewable energy projects on agricultural land deemed to have good or good irrigation potential, in addition to establishing a 35km buffer zone around what the government considers pristine landscapes.
The Canadian Renewable Energy Association (CanREA) welcomed the end of the ban and said it will not affect operating projects or those under construction. However, the agency said it expects the impact to be felt over the next few years. It said the ban on approvals “creates a climate of uncertainty and has a negative impact on investor confidence in Alberta.”
“While the moratorium has been lifted, significant uncertainty and risk remains for investors looking to participate in Canada’s hottest renewable energy market,” said CanREA President and CEO Vittoria Bellissimo. “The key is to Get these policies right, and fast.”
The association said the government’s decision to ban renewable energy in parts of the province was “disappointing.” It said this meant local communities and landowners would miss out on the benefits of renewable energy, such as associated tax revenue and lease payments.
“Wind and solar energy have long co-existed with productive agricultural land,” the association said. “CanREA will work with government and the AUC to pursue opportunities to continue these beneficial pathways.”
Alberta is at the forefront of Canada’s renewable energy development, accounting for more than 92% of Canada’s overall renewable energy and storage capacity growth in 2023, according to CanREA. Last year, Canada added 2.2 GW of new renewable energy capacity, including 329 MW of utility-scale solar and 24 MW of on-site solar.
CanREA said a further 3.9 GW of projects could come online in 2025, with a further 4.4 GW of proposed projects to come online later. But it warned these were now “at risk”.
According to the International Energy Agency, Canada’s cumulative solar power capacity will reach 4.4 GW by the end of 2022. Alberta ranks second with 1.3 GW of installed capacity, behind Ontario with 2.7 GW. The country has set a target of total solar capacity of 35 GW by 2050.
Post time: Mar-08-2024
