Power Technology

Daily Newsletter

07 August 2023

Daily Newsletter

Alberta halts approvals for new large clean energy projects

The Alberta Utilities Commission will put a hold on renewables projects over 1MW in capacity until February 2024.

The Government of Alberta has decided to pause approvals for renewable energy projects until February 2024, amid rising concerns over the rapid pace of development.

The government said that the move was in response to a letter from the Alberta Utilities Commission (AUC) and concerns from municipalities and landowners over responsible land use and the quick pace at which renewables were being developed.

From August 2023, AUC will put a hold on new renewable energy projects over 1MW and will review policies and procedures for the development of such projects.

Once the process is completed, future renewable projects can move forward at a pace conducive to business while the Canadian province’s electricity supply is preserved.

Alberta Affordability and Utilities Minister Nathan Neudorf stated: “We are proud of our leadership in responsible renewable energy development and we are committed to its continued growth.

“This approach will provide future renewable investments with the certainty and clarity required for long-term development.”

However, the temporary moratorium does not apply to Albertans, who are free to deploy renewable products in their homes and communities.

The inquiry will include a review of the use of agricultural and public land for wind and solar projects, land reclamation and the municipal government's role in land selection for project development and review.

The inquiry will specifically look into issues such as the development of projects on specific types or classes of agricultural or environmental land, their visual impact on the province, the development of projects on land owned by the Crown and the impact of the increasing growth of renewables on the supply mix and electricity system reliability.

Alberta Utilities Commission chairperson Carolyn Dahl Rees stated: “We are pleased to support the government in canvassing relevant issues for its development of policy to ensure the economic, orderly and efficient development of electricity generation in Alberta.”

ESG 2.0 marks a shift towards stricter environmental rules

ESG is moving into a different era, which we call ESG 2.0. While ESG 1.0 was driven by voluntary corporate action, spurred by pressure from activist consumers and investors, ESG 2.0 is being driven by a new wave of government policies. The EU has taken the regulatory lead, with rules introduced or in the pipeline that will price emissions, regulate the use of the terms ‘ESG’ and ‘sustainability’ in marketing materials, and make ESG reporting mandatory. The US has taken a different approach, favoring less regulation and more financial support in the form of tax breaks for clean industry (renewables plus nuclear and hydrogen). China is planning to expand its emissions trading system to more sectors, decarbonize its heavy industry, and ramp up its use of renewables. The new policy direction is mainly motivated by the ambition to hit net zero emissions targets. But on top of this, governments are now competing for clean industry and trying to challenge China’s leadership on the production of the world’s green technologies such as solar panels and batteries, as well as the production and refinement of materials needed for energy transition such as lithium. These driving forces are leading to policy that will impact every sector, not just heavy industry, and will keep ESG near the top of the regulatory agenda over the longer term.