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Provincial Politics

Alberta minister says federal strings on electricity climate funding a ‘threat’

Aug 8, 2023 | 5:36 PM

EDMONTON — Alberta Environment and Protected Areas Minister Rebecca Schulz says Ottawa is threatening the province by suggesting it will withhold federal funding from electricity projects that don’t reduce greenhouse gas emissions.

Federal Energy and Natural Resources Minister Jonathan Wilkinson made the comment in Vancouver.

He says billions of dollars in tax credits and grants will be tied to progress toward Ottawa’s target for a net-zero electricity grid by 2035.

But Schulz calls that statement a threat and says it’s no way to start a conversation.

She says meeting the goal is completely unrealistic for Alberta.

“Alberta will not recognize any target that will massively drive up the cost of Alberta power bills while simultaneously risking the integrity of Alberta’s grid,” she said in a statement.

She says Alberta’s United Conservative Party government is talking with Ottawa about flexibility for the province but couldn’t say what concessions the province is seeking.

“Alberta’s unique grid is disproportionately impacted by these federal ambitions. There must be careful consideration for the competitive, deregulated aspects of Alberta’s system to minimize economic impacts on Alberta families and businesses,” said Minister of Affordability and Utilities Nathan Neudorf in a release.

The two provincial ministers released the following joint statement on Tuesday regarding Wilkinson’s announcement:

“Under normal circumstances, this would be welcome news. Unfortunately, the federal government has a track record of announcing tax credits and programs and then failing to follow through.

“The amount of funding announced today, approximately $40 billion, is also a pittance compared with the estimated $1.7 trillion in funding that would be required to fully transition the grid by 2035.

“Alarmingly, reports indicate that Minister Wilkinson and Minister of Environment and Climate Change Canada Steven Guilbeault are considering prohibiting access to these funds, should they ever become available, to provinces that will not commit to their unrealistic 2035 timeline. This would obviously penalize the provinces most in need of assistance in transitioning to a carbon-neutral grid, including Alberta.

“We are rapidly reducing emissions, but Ottawa’s goal for net zero by 2035 is overly ambitious and poses significant challenges for electricity reliability and affordability. Not to mention, their upcoming Clean Electricity Regulation and other policies are driving instability and uncertainty.

“I am pleased that the federal government acknowledges the need for natural gas-powered electricity to back up intermittent renewable power from wind and solar. Alberta is committed to reducing emissions while still maintaining a safe, reliable, affordable and sustainable electricity system.

“Alberta is Canada’s leader in renewable electricity development. However, there are many concerning issues around the rapid pace of development, which is why we have recently paused approvals to review how renewable projects move forward. We know that renewables will play a key part in Alberta’s electrical grid, but it is essential that we do this right so Albertans are able to count on reliable electricity without intermittency.”

Federal Environment Minister Steven Guilbeault is expected to soon release regulations for moving Canada toward a net-zero grid.

This report by The Canadian Press was first published Aug. 8, 2023.

(With files from rdnewsNOW)