Alberta is introducing a raft of new rules and will take an “agricultural-first” approach when deciding where renewable energy projects can be built in the province — while also creating 35-kilometre buffer zones around “pristine viewscapes” and requiring developers to put up remediation bonds or security.
The province is winding up its moratorium on approving new renewable energy projects and overhauling the criteria for the Alberta Utilities Commission (AUC) to approve future proposals.
The new policy will be announced Wednesday by Affordability and Utilities Minister Nathan Neudorf, who said the rules are intended to protect farmland while allowing the industry to grow — although he acknowledges it will likely slow down the sector’s rapid expansion.
“We’re only requesting that the proponent demonstrate the ability for both crops and livestock to co-exist on the land for renewables project. So we are creating a pathway for this to continue,” he said in an interview.
“We anticipate that there will be some contraction of some of these (proposed) investment projects …and this will just be in line with responsible land use.”
The UCP government will instruct the AUC to use the new policy direction for approving new projects, such as wind and solar farms, beginning March 1.
Changes will not be retroactive, but will apply to 13 projects that began moving through the regulatory review process during the seven-month pause, which began in August.
Alberta has seen a surge of wind and solar projects over the past five years, becoming the prime destination for private-sector renewable investment in Canada. Critics have warned the pause could undermine investment in the clean energy sector in the province.
Industry proponents have said any changes should ensure the rules are consistent with other industries, such as oil and gas.
The province added almost 1.4 gigawatts (GW) of installed renewable capacity in 2022 — about three-quarters of all such additions across the country — and that increased to 1.7 GW last year, according to the Canadian Renewable Energy Association.
Under the new policy, Alberta will no longer allow renewable projects on what it considers Class 1 and 2 farmland in the province under a land suitability rating system — covering about seven million hectares out of 26 million hectares — unless the proponent can show that livestock or crop can also exist on the renewable site, Neudorf said.
The practice of agrivoltaics, such as building solar photovoltaic systems that allow for agricultural production on the land, is used in Europe and the United States, with some developments also being built in Canada.
The province will also look to create tools to ensure native grassland, irrigable land and productive farmland will continue to be available for agriculture.
“To boil it down, it means that you still have to be able to either grow crops or have livestock. You can’t just eliminate that from the landscape and only have a renewable project. And I think that’s the balance that we’re seeking to have,” he said.
“You can have both but you can’t just have renewables and risk sterilizing the land in some cases.”
Buffer zones extending at least 35 kilometres will be created around protected areas and what the province designates as pristine viewscapes, such as in parts of the foothills or the mountains.
In those areas, wind farms with turbines will be a “no-go,” said Neudorf. Other developments in the zone could require the AUC to do a site visit and conduct a visual impact assessment before being given the green light.
The minister said he doesn’t anticipate many projects will be affected by that measure.
The new policy will also create rules around reclamation costs to pay for the clean-up once a renewable project reaches the end of its life, such as putting up a bond to cover those expenses.
The money will either be given to the AUC or negotiated with the landowner. Neudorf said the specific amount required has not yet been established and pledged the government will work with industry and third parties to establish that figure.
The incoming changes will also give municipalities the automatic right to participate in AUC hearings on new projects. The government will continue to examine the issue of allowing renewable developments on Crown land, although no changes will take place until late next year.
The industry will also see changes in the months ahead on how transmission costs are allocated to hook up new projects to the grid.
The new policy will likely continue to stir the controversy that has surrounded Alberta’s pause, which was adopted last summer amid a surge of proposals before the AUC.
Alberta has excellent wind and solar resources and, as Canada’s only deregulated power market, it has become a magnet for private-sector investment. It allows private developers to build projects and sell the electricity, along with renewable energy credits, to corporate customers through power purchase agreements.
The Business Renewables Centre Canada said corporate-based PPAs have garnered more than $6.4 billion in investment since 2019.
Earlier this week, the centre said its analysis indicates municipalities across the province could collect up to $277 million annually in tax revenues by 2028, if wind and solar developments announced before the moratorium — more than 100 proposed projects in the pre-regulatory and regulatory phases — proceed.
In an interview last week, Greengate Power CEO Dan Balaban said it seems like the renewable energy sector was being singled out for new remediation requirements. It should be up to landowners to decide what to do with their land, he added.
“Every single landowner that hosts a renewable energy project in this province does so voluntarily,” Balaban said.
“There’s a big misconception about the amount of land that gets taken out of use as a result of renewable energy projects. It’s actually very, very small.”
However, Rural Municipalities of Alberta president Paul McLauchlin said the review tackled some of the key issues that required a deeper examination as the industry was expanding quickly.
“This is actually not that limiting, to be honest,” said McLauchlin, the reeve of Ponoka County. “Most of rural Alberta should be happy with the path forward.”
As for the issue of landowner rights under the new policy, Neudorf stressed steps can be taken to allow for agricultural use around wind and solar developments.
“We’re trying to be responsible with not just one industry, but many industries,” he said.
“We are not eliminating the choice. We’re just saying, if you do choose, you have to do it responsibly and make sure that we can enjoy agricultural production for generations to come.”
Chris Varcoe is a Calgary Herald columnist.
cvarcoe@postmedia.com
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