As the global economy shifts gears towards a cleaner, greener future, Alberta finds itself at a crossroads. The world is fast gravitating to a cleaner, more sustainable energy future while Alberta, rich in oil sands, seems to be stuck in a carbon-intensive past. Despite the declining costs of wind and solar power and the increasing viability of grid-scale energy storage, Alberta appears to be lagging in adopting these promising technologies. This hesitance could be a significant speed bump on the road to economic growth and environmental sustainability for the province, precisely at a time when clean energy investments are projected to surge past a whopping $3.3 trillion by 2025. It’s high time Alberta confronted these challenges and realigned its energy policies with the global clean energy transition.
Keeping a finger on the pulse of Alberta politics might leave some wondering if the province’s energy policy decisions reflect a genuine attempt at shaping public policy or are merely performative posturing on behalf of the oil sector. A recent example of this paradoxical approach is the province’s stringent new reclamation requirements for renewable energy projects, which some have dubbed a blow to the once-thriving renewable sector in the region.
On June 4, the Alberta Utilities Commission announced their Code of Practice for Solar and Wind Renewable Energy Operations. This directive, coming two years after a review ordered by the Minister of Affordability and Utilities, demands the highest percentage of security upfront compared to any other jurisdiction, and does not allow for any salvage value deductions from the required reclamation bond. A recent report by the Business Renewables Centre (BRC) found Alberta’s new reclamation rules to be the most burdensome among the 27 jurisdictions they surveyed across Canada, the U.S., and five other countries around the world.
Jordan Dye, BRC Director, emphasized the potential of wind and solar power in Alberta, citing them as “magnets to the companies that could build Alberta’s future economy”. However, he cautioned that the prohibitive costs of doing business could deter developers from building clean energy projects in the province.
While it’s sensible for the government to ensure taxpayers aren’t left to shoulder the burden of expensive industrial cleanups, the stark contrast in how Alberta treats the relatively minor reclamation risks from the renewable energy sector and the vast unfunded liabilities from the oil sector raises eyebrows. In a move that some consider as verging on political performance art, the Alberta government applies diametrically opposed rules for renewable energy and oil, gas and bitumen liabilities.
In a stark contrast, companies in the oil, gas, and bitumen sectors are only required to post reclamation bonds at the end of a project’s projected economic viability. This approach seems to overlook the official estimate of outstanding liabilities for bitumen mines alone, which stands at a staggering $57.3 billion. Alarmingly, only 3% of this amount is currently covered by the Mine Financial Security Program (MFSP), a program designed to protect Albertans from shouldering the rising costs of mine clean-ups.
In conclusion, Alberta’s reluctance to prioritize renewable energy and its paradoxical approach towards reclamation requirements could hinder its economic growth and sustainability efforts. As the world inches closer to a renewable energy future, it’s crucial for Alberta to address these obstacles, embrace new technologies, and align its energy policies with the global clean energy transition. If not, Alberta might find itself left behind as the world moves swiftly towards a cleaner, greener horizon.
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