On August 3, 2023, the Government of Alberta directed the Alberta Utilities Commission ("AUC") to implement a six-month pause on renewable power generation approvals and to conduct an inquiry on the ongoing economic, orderly and efficient development of electricity generation in Alberta.1 On February 29, 2024, that pause was lifted, and the Government of Alberta announced policy changes to how the AUC will consider new applications for Renewable Approvals, effective March 1, 2024.2
This bulletin provides an overview of the announced policy changes affecting renewable energy in Alberta, and highlights areas where we expect further legislative or policy changes in the coming months.
1. Agricultural Lands
Effective March 1, 2024, the AUC will no longer permit Renewable Approvals on Class 1 or 2 agricultural lands, unless a proponent can demonstrate the ability for both crops and/or livestock to co-exist with the renewable generation project. The AUC is directed to take an "agriculture first" approach when evaluating the best use of agricultural lands that are proposed for renewable development.
Although this new requirement will change how project approvals can be obtained, work in this area is already underway in Alberta. Fasken recently assisted a proponent who successfully obtained an approval of an agrivoltaic pilot research project, which will be the first of its kind in Western Canada. The 150 MW Sollair Solar Energy Project was designed to allow for crops to be grown and native grassland species to be grazed during the summer months. The Project was approved by the AUC on May 2, 2023 and is currently under construction north of the City of Airdrie in Rocky View County.
2. Reclamation Security
Project proponents for developments approved after March 1, 2024 will be required to provide reclamation costs via bond or security. Reclamation costs will either be provided directly to the Government of Alberta, or may be provided directly to landowners with AUC approval. During a media briefing, the Premier noted that such an arrangement may be feasible where funds are held in trust.3
The Government of Alberta has not yet determined details of the reclamation security requirement, including timing (i.e., immediately following an approval or following a period of operations), the amount required, and where the funds will be held. However, further details on this requirement are expected to be announced later this year.
3. Viewscapes
Effective March 1, 2024, new wind generation projects are not permitted within 35 km buffer zones around protected areas or "other pristine viewscapes" designated by the Province. Additionally, the AUC may be required to conduct a visual impact assessment before approving non-wind developments within these buffer zones, which will be determined by a mandatory AUC site visit.4 The Government noted that the vertical footprint of wind turbines is the main concern addressed by this requirement.5
The Government has acknowledged that there is no universal definition of "pristine viewscapes", but that the term often refers to "areas that are unobstructed natural landscapes".6 The Government noted that it will consult with the Ministry of Environment and Protected Areas, the Ministry of Forestry and Parks, and the Ministry of Tourism to define this term.7 In particular, the Government appears concerned about areas looking west towards the foothills and mountain landscapes and the value of these landscapes to Alberta's tourism industry.8
Additionally, the AUC has been directed to consider appropriate setbacks of renewable infrastructure from neighbouring residences and other important infrastructure.
Uncertainty persists concerning what areas will be designated as "pristine viewscapes" by the Province, and how these buffers will apply to limit wind generation approvals.
4. Crown Lands
Engagement with stakeholders, including Indigenous communities, will occur before any policy changes are made for project approvals on Crown land. Accordingly, development of renewable generation on Crown lands will be approved on a case-by-case basis until new policy or legislative changes are announced. Future legislative changes affecting project approvals on Crown lands will not come into effect until late 2025.
5. Transmission Regulation
No changes concerning transmission regulation have been announced yet. However, the Government has noted that changes to the Transmission Regulation9 will be forthcoming following other ongoing engagement on this topic and has stated that renewable projects should expect changes in how transmission costs are allocated.10 The scope of these changes and whether they will apply to all generation projects is not yet clear.
6. Municipalities
Effective March 1, 2024, municipalities are automatically granted the right to participate in AUC hearings for renewable project approvals, and are eligible to request cost recovery for their participation.
Conclusions
The recent policy announcements alert project proponents to new requirements on renewable energy developments that will be forthcoming. Concurrent with these policy announcements, the AUC indicated in Bulletin 2024-0311 that interim information requirements for new power plant applications announced during the renewable approval pause will continue to apply.12 Additionally, on February 28, 2024, the Alberta Electric System Operator hosted an information session on its new Connection Requirements for Inverter-Based Resources that will apply to both new and in-flight projects.13 Proponents should be aware of requirements that are now effective for all new project applications (including interim information requirements), and should be mindful that further requirements are expected to be announced in the coming months.
Footnotes
1. Government of Alberta, "Creating certainty for renewable projects" (3 August 2023), online.
2. Government of Alberta, "Renewed path forward for renewable energy" (February 28, 2024), online.
3. Government of Alberta, "Renewed path forward for renewable energy" (February 28, 2024) at 5:25, online (video). [February 28, 2024 Press Conference].
4. February 28, 2024 Press Conference at 28:00
5. February 28, 2024 Press Conference at 11:41.
6. February 28, 2024 Press Conference at 11:30.
7. February 28, 2024 Press Conference at 21:19.
8. E.g. see February 28, 2024 Press Conference at 21:19 and 22:25.
9. AR 174/2004.
10. Government of Alberta, "Renewed path forward for renewable energy" (February 28, 2024), online.
11. Alberta Utilities Commission, "Bulletin 2024-03" (28 February 2024), online (pdf).
12. See Alberta Utilities Commission, "Bulletin 2023-05" (6 September 2024), online (pdf).
13. A recording of the Information Session can be accessed here and the AESO's presentation can be accessed here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
