Alberta’s Pause on Renewable Energy

How Alberta’s Controversial Pause on Renewable Energy Development is Impacting Future Services for Consumers

Alberta has been recognized as a leader in renewable energy development, largely because of its strong support for renewable energy projects. Investments in hydro, wind and solar power have helped completely change the balance of where Alberta’s energy comes from. Just 10 years ago, coal was the top resource for electricity generation, but coal has now been overtaken by renewables that provide 16.5% of the electricity in Alberta.

It’s clear much progress has been made in diversifying Alberta’s energy supply so that it’s more abundant and cleaner, but the province is still far away from having a stable grid that’s carbon neutral. Coal is still used to generate 12.2% of electricity while gas supplies 68.5%.

Unfortunately, the progress came to a grinding halt late last year when the United Conservative Party made the controversial decision to pause the approval of new renewable projects. During the pause, which many Alberta residents questioned, the government conducted an inquiry that has impacted the approval of future wind and solar energy projects. The changes and why they were made has created a lot of controversy and confusion that’s impacting energy investors and consumers in Alberta.

Questionable Reasoning for Why the Alberta Utilities Commission Paused Renewable Energy Development

On August 3, 2023 the Alberta Utilities Commission (AUC) announced they would be pausing approvals for new renewable energy projects. It was a decision that was immediately questioned and that has become more controversial in recent weeks as new information contradicts the reasons stated by the government for the pause.

Originally, government officials had stated the pause was necessary so they could address concerns that various groups had with the pace of development and land use for renewable energy projects. In particular, land selection was supposedly being scrutinized during the pause to review policies that related to scenic and agricultural lands.

Overall, it was said the reasoning for the pause was to ensure renewable energy development was done responsibly and would create better stability for the electric grid. A published letter from the Alberta Electric System Operator (AESO) also stated that the pause was at the request of Rural Municipalities of Alberta (RMA). The Premier of Alberta, Danielle Smith, later stated that the AESO requested the pause.

However, both the RMA and AESO stated they didn’t make any such requests, and now there is documentation to prove it was the Government of Alberta that pushed for the pause despite concerns from experts.

Recently released official documents that were obtained by Narwhal revealed that AESO’s CEO Mike Law thought pausing approvals would be detrimental, not helpful. The documents obtained by Narwhal included an email from AESO board chair Karl Johannson that highlights Law’s concerns about what the pause could mean for future development. It also proved that the Government of Alberta wanted and initiated the pause.

During the pause, the Government of Alberta created new restrictions on renewable energy projects and tasked the AESO with creating a plan in the next few months for the restructuring of the Alberta energy market with changes that would take effect by 2027.

It turns out the concerns Mike Law had were valid. There are early signs that the pause on approvals, new restrictions and proposed changes to how the energy market is structured could slow the growth of renewable energy generation in Alberta.