Renewable Energy Industry Frustrated with Government's Halt on Wind and Solar Projects

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How Alberta’s booming renewable-energy industry got caught in the decarbonization fight

says she takes her cues on major economic issues from CEOs, but leaders of companies in the renewable-energy industry would contend that she’s not taking any from them.on application approvals for new wind and solar projects, renewable-energy developers, investors and unions have expressed their frustration, and questioned the stated reasons for the move.

The move appears to satisfy two aims. Elected on the strength of its rural base, the government is acting in response to what Calgary energy lawyer Jeremy Barretto refers to as neighbouring landowner concerns. Indeed, wind and solar projects can only be built in agreement with landowners. That differs from oil and gas, where landowners do not own the subsurface rights.

Now, the last one is due to go offline later this year – seven years ahead of schedule. That has put gas-fired power in the driver’s seat with about three-quarters of the generation in the province. But wind and solar have quickly made major strides. Rising from 9 per cent of capacity six years ago to more than 22 per cent as of last year.

The province’s treasury is highly dependent on non-renewable resource revenues, and natural gas is seen as the hydrocarbon with the most potential for expansion as the oil sands wrestle with high development costs and companies focus on developing a $16.5-billion carbon-capture network. However, Ottawa’s draft shows the opposite. It has made exemptions for building and operating gas-fired peaker plants – stations that operate in times of high demand to ensure reliability – to be built and operated beyond 2035.

 

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