(L-R) Alberta NDP's Nathan Ip, Critic for Jobs, Economy and Trade, and Kyle Kasawski, MLA for Sherwood Park and Critic for Municipal Affairs, Mid-Sized Municipalities and Rural Alberta, at Bower Ponds on Tuesday. (rdnewsNOW/Alessia Proietti)

By Alessia Proietti

Pembina Institute report

NDP says renewable energy moratorium risks $11 billion and 7,000 jobs in central Alberta

Aug 29, 2023 | 4:33 PM

The Alberta NDP stopped in Red Deer on Tuesday to share the full economic impacts of the provincial government’s moratorium on the renewable energy sector, specifically in the central Alberta region.

At Bower Ponds (4715 Fountain Dr.), Kyle Kasawski, NDP MLA for Sherwood Park and Critic for Municipal Affairs, Mid-Sized Municipalities and Rural Alberta, as well as Nathan Ip, Alberta NDP critic for Jobs, Economy and Trade, discussed the data from the recently released report by the Pembina Institute, showing the billions in investment and thousands of jobs at stake in the region.

Early August, the UCP government announced the seven-month pause would be devoted to conducting an inquiry into regulations surrounding renewables production to review that the right processes are in place to support continued investment in the industry.

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According to the report, a total of 39 projects under various stages of development in central Alberta are currently at risk due to the moratorium. The projects amount to $11 billion in investment and 7,000 jobs.

“As these figures show, there are massive economic opportunities for renewables in Alberta. We’re currently the fastest growing market for renewables in Canada, and yet, the UCP has decided to shut down the sector for seven months. This creates uncertainty and sends the wrong signal to international investors,” said Kasawski.

Some affected projects in the central Alberta area include:
(Planning Area – Company Name – Project Name – Investment – Jobs/year)

• Red Deer – Fortis – Red Deer DER Solar – $18 million – 23
• Red Deer – Kiwetinohk Energy – Phoenix Solar – $447 million – 371
• Red Deer – Kiwetinohk Energy – Springbrook Solar – $449 million – 372
• Red Deer – Saturn Power Inc. – Springbrook West Solar – $30 million – 25
• Village of Caroline – PACE Canada LP – Sundre DER Solar – $19 million – 16

The NDP says the UCP’s moratorium on renewables has led to uncertainty and puts investment at risk.

While not in the report because they haven’t submitted their application yet, a local example includes a solar project being proposed by the Town of Innisfail that has been put on hold due to the moratorium. The project is expected to generate $500,000 per year for the community and the pause has “frustrated” the town, officials say.

Kasawski confirmed that the site has been chosen and zoned for the project, located near a solar farm currently generating revenue for the Town.

Ip says the ban has also garnered international headlines in Reuters, The Wall Street Journal, and The Guardian, damaging Alberta’s international reputation as a place to invest.

“The UCP’s renewables moratorium is anti-business and shows the UCP can’t be trusted to manage our economy. If we want to attract investment and create jobs in central Alberta, the UCP must end this moratorium immediately and tell the world we are once again open for business,” said Ip.

When questioned about the impacts of the renewable energy sector on Alberta’s oil and gas sector, Ip responded that the province can be leaders in both industries.

On Monday afternoon, the Alberta Electric System Operator (AESO) issued a grid alert, stating the provincial power system was under stress due to a combination of hot weather, low wind energy generation, and a power outage in B.C. that impacted the intertie capability, causing the total reliance on natural gas and solar power.

READ: Premier Smith says Alberta needs more energy following grid alert

Kasawski said this is another reason why the province needs more energy source options to maintain grid stability. He claims increased energy supply would also create affordability for Albertans as renewable energy provides some of the lowest new energy costs.

He says the AESO is being handcuffed by the government as even geothermal projects, which have potential across the province, have also been paused.