NDP MLA calls for immediate end to moratorium on renewable energy developments

Author of the article: Travis Dosser

Published Aug 31, 2023 in The Sherwood Park News

4 minute read

A surprise announcement from the Alberta Government putting a moratorium on the renewable energy sector is causing chaos in the booming industry, according to the official opposition.

The UCP government announced the decision, which applies to wind and solar power projects of more than one megawatt and will last until Feb. 29, 2024 while the Alberta Utilities Commission conducts a review looking at the impact on landscape views, site reclamation requirements and system reliability.

“It was a very strange way to bring up a big decision that has an impact on a lot of people, on people working in renewables and investors. The discussions I’ve been having have been with people developing the projects or people who are investment bankers and have clients that want to invest here and have projects they are working on, and also suppliers that have now got parts that were on order that are now on hold,” explained Kyle Kasawski, MLA for Sherwood Park. “Within the area of Strathcona County and the area around Edmonton, we just got a report from the Pembina Institute, and we were able to break it down and pull out what is in this region, and it looks like almost $3-billion worth of projects that are on hold now as a result of this decision.”

A detailed analysis shows there are 118 projects in various stages of development that are at risk due to the moratorium, which amounts to around $33 billion in investment and 24,000 jobs, according to a report released by the Pembina Institute on August 24. The 118 projects would also contribute $263 million in local taxes and leases for landowners in 27 municipalities. The report’s figures were provided by the Alberta Electrical System Operator and Natural Resources Canada.

The Sherwood Park MLA said nobody saw this coming.

“It would surprise a lot of people to know that the lowest cost supply of electricity is now coming from renewable. We’ve had a really cool market in Alberta for more than 27 years that we call an energy only market that allows any technology to come and compete here,” Kasawski said. “Corporations and merchant producers of energy look at our market as a great place to compete because we had stable, robust policy that supports our energy generation here but now we have this moment where the government has stepped in, which has never happened in Alberta, and said things have to stop for this certain energy type, it is shocking to investors.”

Kasawski said the $33-billion in potential investment exceeds the $28-billion that is expected to be invested in Alberta’s oil and gas sector this year.

Strathcona-Sherwood Park UCP MLA Nate Glubish said the pause is in response to concerns raised by municipalities, regulators and landowners.

“We must ensure the reliability and the affordability of the grid while accounting for issues regarding reclamation, landowner rights, cost of infrastructure, impact on Alberta’s view scapes and use of farmland,” Glubish said. “This is about setting a regulatory standard for all projects to attain now and into the future.”

Since the UCP announced the moratorium, it has faced criticism for catching industry stakeholders off guard and putting billions of dollars of potential investment in the province at risk.

Author of the recent Pembina Institute report, Jason Wang, said the 118 projects are in various stages of development, from formal proposals to initial construction.

“Probably not all these projects will be built,” Wang said. “But all these projects have investors talking about (building). We do see tremendous interest in Alberta.”

More than a dozen projects have been directly impacted by the moratorium.

“Alberta is the most investor friendly province in Canada on renewables, and construction and development of approved projects, and the resulting jobs, will continue under the pause,” Glubish said. “Only 13 projects are currently impacted by the pause, and they will continue through processing up until the point of approval. Engagement with stakeholders will continue throughout the inquiry.”

Kasawski has heard otherwise from a number of investors and companies.

“I’ve talked to a company developing a project that received initial approval and were looking to expand it. They were working out the terms of the deal for a large 25-megawatt solar project, but the investors and the large international companies put the pen down when this was announced and said they would pause and look at other areas like Colorado where they have good sunshine and stable government to get the projects built there,” Kasawski said.

Kasawski said the NDP did not hear from any municipalities or landowners who had asked for this, and wants the Alberta government to get past the politics and reverse this decision and continue the thoughtful development of renewables in Alberta.

— With files from the Canadian Press

tdosser@postmedia.com

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