Canadian province of Alberta has lifted its ban on renewable energy projects

The government of the western Canadian province of Alberta has ended a nearly seven-month moratorium on approving renewable energy projects. The Alberta government began suspending approvals for renewable energy projects in August 2023, when the province's Public Utilities Commission began an investigation into land use and reclamation.

After lifting the ban on Feb. 29, Alberta Premier Danielle Smith said the government will now take an "agri-first" approach to future renewable energy projects. It plans to ban renewable energy projects on agricultural land deemed to have excellent or good irrigation potential, in addition to establishing a 35-kilometre buffer zone around what the government deems pristine landscapes.

The Canadian Renewable Energy Association (CanREA) welcomed the end of the ban and said it would not affect projects in operation or those under construction. However, the agency said it expects the impact to be felt over the next few years. It said the ban "creates a climate of uncertainty and negatively impacts investor confidence in Alberta."

"While the moratorium has been lifted, there is still a great deal of uncertainty and risk for investors looking to participate in Canada's hottest renewable energy market," said Vittoria Bellissimo, president and CEO of CanREA. "The key is to get these policies right, and fast."

The association said the government's decision to ban renewable energy in parts of the province was "disappointing." It said this meant local communities and landowners would miss out on renewable energy benefits, such as associated tax revenues and lease payments.

"Wind and solar power system have long co-existed with productive agricultural land," the association said, "and CanREA will work with the government and AUC to pursue opportunities to continue these beneficial pathways."

Alberta is at the forefront of renewable energy development in Canada, accounting for more than 92 per cent of Canada's overall growth in renewable energy and storage capacity in 2023, according to CanREA. Last year, Canada added 2.2 GW of new renewable energy capacity, including 329 MW of utility-scale solar system and 24 MW of on-site solar system.

CanREA said a further 3.9GW of projects could come online by 2025, with a further 4.4GW proposed to come online at a later date. But it warned that these were now "in jeopardy".

According to the International Energy Agency, Canada's cumulative solar capacity will reach 4.4 GW by the end of 2022. With 1.3 GW of installed capacity, Alberta ranked second behind Ontario at 2.7 GW. The country has set a target of 35 GW of total solar capacity by 2050.