Energy loss: post-mortem on a moratorium

Posted on August 22, 2024 by Vauxhall Advance

By Cal Braid
Vauxhall Advance
Local Journalism Initiative Reporter

 The Pembina Institute is a self-styled “clean energy think tank” that’s been advancing solutions to today’s energy challenges. As the nation grapples with the transition to clean energy, Pembina works toward reducing the environmental impacts of Canada’s energy production and to provide actionable ideas on how to implement clean energy.

 In an Aug. 2 news release, the institute took a closer look at the seven-month moratorium on renewable energy development that the Province implemented just over a year ago. The institute analyzed the outcomes of the moratorium and found that the electricity that could have been generated by halted renewable projects was equal to the amount of power used annually by 98 per cent of Alberta homes.

 In all, more than 50 renewable energy projects withdrew applications from Alberta’s electricity grid development process in the last twelve months since the moratorium was announced. One study looked at the trends of renewable project applications lined up before the Alberta Electric System Operator (AESO) to better understand the impacts of the moratorium. Research found that 33 projects in the lineup prior to the announced moratorium had since been cancelled.

A rush of applications in August 2023 indicated that renewable project managers were seeking to be grandfathered under the pre-moratorium project development rules. Since then, 20 of those projects have also since withdrawn, bringing the total cancellations to 53.

 The institute noted, “As well as cancellations, the ongoing lack of clarity around renewable energy development rules appears to be deterring new investment in Alberta. Although the moratorium formally ended in February 2024, as of the end of July, only three solar projects totaling 13 MW and zero wind projects have applied to the AESO since August 2023.”

 Scott MacDougall, the institute’s director of electricity said, “It is critical that announced restrictions are clarified for investors and to support renewing Alberta’s renewable energy advantage. Without further clarity on restrictions for renewable energy development, the trajectory for the sector in Alberta remains concerning and is putting an affordable, reliable and clean grid in jeopardy.”

 Analyst Will Noel said, “Our analysis shows that real dollars in investment into Alberta have already been lost in the last year. The number of projects cancelled in Alberta, contrasted with the renewable energy capacity being added elsewhere, suggest renewable developers will look for other jurisdictions where there appears to be less political risk associated with these investments, such as some U.S. states. This is a reminder that more clarity on the regulatory outlook for renewables in Alberta is what is needed to bring these investments back.”