Alberta’s renewables approval ban ends but brings limitations

The Canadian province of Alberta on Wednesday announced certain policy changes that put limits to local renewables development, including a ban on project permitting on lands suitable for growing speciality crops.

The announcement was made the day before the Alberta Utilities Commission (AUC) ends a pause on final approvals of new renewable electricity generation projects over 1 MW, the purpose of which was to allow the regulatory body to conduct an inquiry and address concerns related to “responsible land use and the rapid pace of renewables development.”

In a letter to the head of the AUC, Minister of Affordability and Utilities Nathan Neudorf listed a number of policy changes that are based on the first of two reports prepared by the commission. These include instructing the AUC to take an “agricultural first” approach when evaluating the best use of agricultural lands that are the subject of renewables development proposals, and blocking the approval of renewable energy projects development on Class 1 and 2 lands unless it is proven that the facility can coexist with crops and livestock.

At the same time, new wind projects will no longer be permitted within certain buffer zones of at least 35 kilometres to be established around protected areas and other “pristine viewscapes”. Other proposed developments within these zones may be subject to a visual impact assessment before approval, as well.

Changes will also be made to introduce “meaningful engagement” for projects on Crown land and to give municipalities the right to participate in AUC hearings.

In addition, project developers will be responsible for reclamation costs via bond or security.

It was also noted that Alberta’s Transmission Regulation will undergo changes in the coming months that will amend how transmission costs are allocated for renewable projects.

“While many of the details are still to be determined, RMA [Rural Municipalities of Alberta] is cautiously optimistic that this approach will reduce conflicts between renewable projects, local land use plans and agricultural land preservation, and ensure that project owners are responsible for decommissioning and reclamation costs. RMA also appreciates the changes to the AUC project approval process to ensure municipal involvement, as this will help to allow for local project risks and benefits to be properly considered by the AUC when reviewing new project applications,” said Paul McLaughlin, president of RMA, and reeve, Ponoka County.

In his letter to the AUC, Minister Neudorf said that, while the approvals pause ending today was considered abrupt by some, it did not waver investments in the province. For instance, the February 2024 Long-Term Adequacy Report by the Alberta Electric System Operator (AESO) shows that there currently are 3,300 MW of wind and solar projects under construction, an additional 2,760 MW with AUC permits in place, and around 22,900 MW of additional projects announced.

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