By Alyssa Bruce - October 31, 2023
With its ample wind and solar resources and competitive electricity market, Alberta has set a formidable pace of renewable energy development with the AESO forecasting that 30% of the Province’s electricity supply will be generated by renewables within the next 1-3 years. However, on August 3, 2023, in a surprising move, the Government of Alberta issued two Orders-In-Council effecting a pause on the issuance of power plant approvals for hydro and renewable energy generation projects over one megawatt in size. During the pause, which will be in effect until February 29, 2024, the Alberta Utilities Commission (AUC) will undertake a review and provide a report to the Minister of Affordability and Utilities on renewable energy project development considerations such as siting and land use including development on Crown land, project reclamation security requirements, and the potential impacts of increasing renewable energy generation on Alberta’s grid.
Although the intention of the AUC inquiry and the pause on project approvals is purportedly to support a robust planning process for the economic, orderly and efficient development of electricity generation in Alberta, questions have been raised about the motivation behind the pause. It has created uncertainty and left many concerned about how this will impact renewable project investment and Alberta’s momentum in sustainable energy development.
The Alberta government and regulatory bodies have previously undertaken stakeholder engagement and consultation regarding renewable energy planning and development considerations, including regional land use planning. The South Saskatchewan Regional Plan (SSRP) came into effect in 2014 and was amended in 2018. The South Saskatchewan region comprises 84,000 square kilometers of high value land in Southern Alberta, including the City of Calgary south to the Canada-US border, representing the area of the Province where the majority of renewable energy development is taking place. The SSRP was to be implemented by land use decision-makers and provide strategic guidance on the development of policy and regulations, recognizing the importance of removing barriers to renewable energy investment in the Province while balancing the fact that project deployment is limited to freehold-owned lands in an area that is over 50% disturbed from existing human-caused activities.
The recently announced pause on project approvals leaves us wondering why the necessary policy and regulations have not kept pace with renewable energy development, particularly since discussions have been underway for over a decade and that landowners and municipalities have been expressing concerns about the land use tensions between incorporating renewable energy projects and preserving high value agricultural and native grasslands as well as reclamation requirements and interconnection challenges for small-scale installations. Various resolutions have been brought forward to the Rural Municipalities of Alberta by municipalities seeking clarity from Government of Alberta departments on these tensions.
The increase in renewable energy generation in Alberta has been primarily due to the construction of utility-scale projects which require significant land area to develop. While the larger renewable energy project approvals are side lined by the Orders-In-Council, there is an investment opportunity for small-scale and microgeneration projects sized under one megawatt. An example of a community solar generation installation that addresses some of the land use tensions under discussion is the RenuWell Project which repurposed two orphan oil and gas well sites for small-scale solar generation. The combined capacity of the two systems is 1.5 megawatts.
The RenuWell Project, that was funding by the MCCAC to better understand the implications of small-scale generation in Alberta, provided an innovative model for renewable energy development that can help address some of the key issues raised by the provincial government's pause on approvals. By repurposing inactive oil and gas wells for solar generation, RenuWell makes use of disturbed land and existing infrastructure. This reduces the need for additional land disturbance, helping to preserve agricultural and grasslands.
The small-scale, modular nature of the RenuWell solar installations allows for decentralized, distributed generation across the grid rather than large centralized facilities. Having many distributed generation sources improves resilience and reliability, while reducing transmission infrastructure needs. RenuWell's model also enables community and Indigenous investment, keeping energy revenue and benefits local. Leveraging Alberta's oil and gas workforce skills in construction and operations of these solar facilities supports an equitable workforce transition. The simplicity of permitting and regulations for small-scale projects makes them more accessible for communities to develop.
Additionally, repurposing wells for solar reclamation accelerates site cleanup while offsetting costs. This benefits the environment, landowners, and taxpayers. The modular design of RenuWell systems allows for scalable deployment at multiple distributed sites across the province as an alternative to utility-scale projects.
Small-scale solar generation can continue momentum while addressing concerns raised over large projects. Rather than broadly banning development, the government should focus on creating supportive policies and programs to enable community-based and distributed renewable models. The energy transition can still be done efficiently and responsibly through solutions like RenuWell. This approach would uphold Alberta's leadership in energy innovation while building an equitable, low-impact renewable future.