Opinion: Alberta's ban on renewables carried heavy price

Source: Jorden Dye | · CALGARY HERALD · | August 8, 2024

A year ago, Alberta’s provincial government stunned the renewable energy industry by announcing a moratorium on new approvals. The headline on their news release said they were, “Creating certainty for renewable projects.”

Instead, the clean energy industry is still stuck in a heavy fog of uncertainty.

What is clear is that the moratorium and the ongoing regulatory confusion came with a price. Albertans have lost out on capital investment, municipal taxes and clean, low-cost power.

In our latest annual analysis, we found that Alberta communities will collect $54 million in municipal tax revenues from wind and solar projects in their jurisdictions this year. That’s almost double the previous year’s $28 million. Before you conclude that all is well in the industry, note that these projects were all initiated, approved and constructed before the moratorium was announced.

Since the moratorium announcement, 53 projects have been cancelled. This is more than five times higher than the normal project cancellation rate in the last few years. Calculated very conservatively, these projects represent an annual loss of $91 million per year in tax revenues to communities. This is revenue that would have been stable and sustainable. Wind and sun don’t run out, and when equipment wears out it can simply be replaced.

For many communities in southern Alberta, renewable energy revenues represent a substantial and growing part of their annual budget. For five communities, this revenue ranged from 20 to 30 per cent of their total operating revenues for 2023, while one community hit 51 per cent.