Danielle Smith drops ‘uncertainty bomb’ on Alberta’s clean energy future

Alberta’s seven-month pause on renewable energy development is coming to an end, but new rules promise to restrict the sector even further, experts say.

Among the new rules Premier Danielle Smith announced Wednesday is a ban on new wind projects within a 35-kilometre buffer zone of protected areas and other “pristine viewscapes” chosen by the province. Other projects in the buffer zone could be subjected to a “visual impact assessment” before securing approval.

Smith also said the Alberta Utilities Commission, which regulates energy projects, will take an “agriculture first” approach, meaning crops and livestock will take priority over renewable energy proposals unless it can be demonstrated that the project can coexist with agricultural uses. Renewable energy developers will also be required to put money aside for reclamation; an environmental measure frequently shirked by oil and gas companies that has resulted in the province facing $33 billion worth of liability from inactive wells.

“Growing our renewable energy industry must happen in well-defined and responsible ways,” Smith said. “We need to ensure we're not sacrificing our future agricultural yields, or tourism dollars, or breathtaking viewscapes to rush renewable developments through.”

Simon Dyer, Pembina Institute deputy executive director, told Canada’s National Observer that Wednesday’s announcement will hamstring the renewable energy sector and raises more questions than it answers.

“If you put a 35-kilometre buffer on all protected areas in southern Alberta, that covers 76 per cent of the landscape,” he said, adding that the Alberta government hasn’t provided concrete details about how projects will be evaluated going forward. “I mean, if I was a wind developer and 76 per cent of that land [is affected], I'd be very concerned and ask for clarification.”

Smith said renewables have a place in the province’s energy mix, but stressed gas power will remain the cornerstone indefinitely. She described a “parallel process” that would see renewable energy added to the grid only with an “equivalent amount” of gas power to ensure gas can meet demand at all times. She said this was an important step to take because renewable energy is typically intermittent, and she wants to avoid blackouts, pointing to a cold snap in January that led to the province’s electricity system operator issuing alerts to residents to conserve power.

In fact, the reason for the power shortage was natural gas plants being offline. Renewable energy helped ease the strain on the system, according to the Alberta Electric System Operator.

Speaking to reporters from Parliament Hill, Liberal MP George Chahal didn’t mince words. He said Smith is “continuing her ideological crusade against renewables” and is telling investors that Alberta is “closed for business.” He also noted Smith’s moratorium seven months ago on renewable energy development affected more than 100 projects, representing $33 billion worth of investment and 24,000 jobs.

“Danielle Smith is killing an industry and making life more expensive,” he said.

“Today, she essentially announced that with the new 35-kilometre rule, and layers of restrictions, the vast majority of Alberta is off limits,” he said. “The temporary moratorium has now become permanent.”

Chahal, who represents the riding of Calgary Skyview, also accused Smith of scapegoating renewable energy during January’s cold snap.

“All this begs the question: Where has this mismanagement got us? Under Jason Kenney and Danielle Smith's watch, electricity rates have quadrupled since 2019,” he said. “Smith's unfair treatment of renewables would only make things worse.”

Dyer said the new rules will negatively impact renewable energy development in the province.

“Some of these rules seem patently unfair and target an industry that supports reliable and low-cost electricity,” he said. “Many of these restrictions do not apply to other industries or land uses.”

By “inventing” new concepts like “pristine viewscapes” to restrict potential renewable energy projects, Dyer said Alberta appears to be using a double standard since other industries like coal mining or logging don’t face the same rules.

“It does appear to come from a bias around renewable energy… If you don't like renewable energy, I guess looking at renewable energy upsets you,” he said.

Other environmental think tanks and business groups were quick to criticize Alberta’s announcement.

Evan Pivnick, Clean Energy Canada’s clean energy program manager, said Albertans stand to lose the most from the new rules. He described Smith’s announcement as an “uncertainty bomb” for investors.

“Until last year, the province was the undisputed renewables capital of Canada, securing over $4.7 billion in new investment and bringing thousands of new jobs to the province since 2019,” he said in a statement. “Now Alberta is undermining its own success, making it one of the only jurisdictions in the world trying to frustrate the deployment of cheap, clean, renewable electricity.”

Clean Energy Canada research also suggests decarbonizing the province’s power grid could save $600 per household in utility costs because electricity generated from wind and solar is cheaper than gas. That’s an important affordability concern given Albertans pay higher electricity bills than residents of any other province.

Jordan Dye, Business Renewables Centre-Canada director, said in a statement that industry will need much greater detail from the province, saying they are missing from “just about every regulatory area they’ve announced new rules on.”

“By introducing three new regulatory frameworks without details, investors and developers are left wondering what this actually means for their projects,” he said. “While details are needed across all categories, particularly concerning is the continued vagueness of the viewscapes requirements.

“Any project that’s even close to a protected area, or what might be considered a protected area, can’t move forward until there’s certainty from the provincial government.”