Solar panels at the Michichi Solar project near Drumheller, Alta., on July 11.Jeff McIntosh/The Canadian Press
Alberta’s moratorium on renewable energy project approvals stands to affect more than 100 projects worth $33-billion, according to a new analysis.
That number dwarfs the United Conservative Party government’s claim that 13 projects are being impacted by the seven-month pause on approvals it announced on Aug. 3. No industry groups nor companies affected by the freeze on Alberta’s multibillion-dollar industry were consulted before the surprise announcement from Utilities and Affordability Minister Nathan Neudorf.
The analysis of public data released Thursday by the Pembina Institute, a clean energy think tank, shows that 118 renewable energy projects are currently at various stages of development in Alberta, stretching from Peace River in the north all the way south to near the U.S. border. Developers include established renewable energy companies, municipalities, fossil fuel companies and First Nations, representing at least $33-billion of investment and 24,000 jobs.
The chasm between the government’s list and Pembina’s boils down to which regulator records are included.
The province only looked at the projects seeking final-stage approval from the Alberta Utilities Commission (AUC).
The Pembina analysis cast a broader net, including projects that are in the pipeline with the Alberta Electric System Operator (AESO). The bulk of those are at a much earlier stage of development, including some that have just submitted the first stage of applications. But others are far enough along that they could submit an approval application with the AUC within the next few months.
Pembina electricity analyst Will Noel said in an interview that including projects at all stages of development paints a much more accurate picture of what stands to be affected by the government’s freeze on approvals, and the resulting delays and uncertainty for the sector.
Even though some of the 118 projects are just starting the application process, he said, “This isn’t an overnight decision.”
“There is a lot of work, hours and effort occurring in each of the earlier stages. The developer will be in active discussions with the landowners, funders and investors, neighbouring communities, technology manufacturers and distributors, construction companies and a range of other consultants and stakeholders.”
But Mr. Neudorf dismissed Pembina’s analysis as “misinformation,” saying the group’s list includes projects “that are months, maybe years, away from even getting before the AUC.”
“As the pause will be lifted in February of 2024, the next construction season will be available for approved projects,” he said in a statement.
“The pause will help set a regulatory standard for all projects to attain now and into the future.”
The AUC will continue to accept new applications throughout the government-mandated pause, but will require developers to include a swath of additional information about issues such as agricultural land, viewscapes and reclamation security. It has not yet said exactly what information will be required.
Alberta was leading Canada in renewables growth when the moratorium was imposed. Since 2019, $4.7-billion has been invested into its renewable energy sector, and there are 3,400 megawatts of wind and solar projects under construction in the province, worth nearly $3-billion.
Yet Mr. Noel said even he was surprised when he saw just how many projects stand to be affected by the moratorium, either with delays or uncertainty about looming regulation changes.
“It was a big, a big shock. And then you look at the size of some of these projects, and some of them have battery storage attached so that just even increases the impact even more,” he said. Batteries allow the projects to feed into the grid at almost all hours, smoothing out the well-known variability of renewable power generation.
Opposition NDP energy critic Nagwan Al-Guneid told media Thursday that the scale of investment in Alberta’s renewable energy sector highlights its potential to diversify the provincial economy.
“This is about our economic future. It is about reducing emissions from our electricity generation to address climate change,” she said.
“All of this is doing serious damage to our international reputation as a place to do business.”
Renewable-energy developers and investors have expressed their frustration and questioned the stated reasons for the move, which include addressing how projects are cleaned up at the end of their life and studying how more renewables affect arable farmland and grid reliability. Those concerns have been raised repeatedly in rural Alberta, but proponents say there was no need to freeze an industry to conduct a review.