JORDEN DYE, director of the Business Renewables Centre-Canada (BRC-Canada), made the following statement in response to the Government of Alberta's new rules governing reclamation security for renewable energy.
"Our analysis of 27 other jurisdictions shows that Alberta now has the most costly reclamation security rules for renewable energy projects. The province now requires wind and solar projects to provide a very high percentage of financial security up front. This is unusual and without precedent in the province. The requirements ignore the salvage value, which is what you would recover from selling the concrete and metals that make up wind and solar projects, from the gross decommissioning cost in determining this security amount. Both moves will significantly increase capital costs for new projects.
"The Alberta government's actions and messaging on renewable energy are out of sync with its overall claims of Alberta's competitive advantage and ultimate business environment. In fact, these new rules will be viewed by developers and investors as a significant competitive disadvantage.
"Renewable energy is a highly competitive business. After all, wind and sunshine are found worldwide. Corporations and developers look for markets where renewable energy is readily available to new businesses because they want to invest in places that will allow them to meet the sustainability targets demanded by their shareholders. A recent example is the Bell Canada announcement to build data centres in B.C., partly because of the availability of clean energy there.
"Plentiful wind and solar power are magnets to the companies that could build Alberta's future economy. But developers can't and won't build clean energy in provinces or territories where the cost of doing business is prohibitive. That doesn't work in any industry.
"Regulatory uncertainty has already cost Alberta. Last year was the slowest year for corporate purchases of renewable energy in our organization's history. And the Pembina Institute's Down But Not Out report released last week showed a reduction in the number of projects in the Alberta Electric System Operator's connection queue the first time this has happened. But replacing uncertainty with onerous regulations could cement the industry's decision to build elsewhere.
"When comparing the Code of Practice to the reclamation security requirements of other jurisdictions in North America, Europe and Australia, our analysis shows Alberta has the most restrictive rules with regards to project applicability, security timing and salvage value incorporation, making its reclamation security requirements significantly more costly than those in other jurisdictions."
Jorden Dye, director of the Business Renewables Centre-Canada, is available for comment.
Quick facts
From January 2019 to March 31, 2025, 3.73 gigawatts (GW) of renewable energy have been purchased Canada-wide (though largely in Alberta) through power purchase agreements (PPAs), enabling a total of 4.77 GW of project capacity. This equates to 14,700 gigawatt-hours per year of energy provided, leading to:
- the creation of 7,000 jobs,
- $7.5 billion in capital investment, and
- production of enough energy to power 1.9 million homes.
In addition, $54 million in municipal tax revenues was provided to Alberta communities in 2024 from wind and solar projects operating in their municipalities.
Corporate power purchase agreements signed by BRC-Canada participants were responsible for 35 per cent of Alberta's new installed generation from 2019 to December 2024 (exclusive of new gas fired steam capacity resulting from coal conversions, except where the net capacity increased.)
Background
The Business Renewables Centre-Canada (BRC-Canada) is an initiative of the Pembina Institute. BRC-Canada exists to enable businesses and institutions to access renewable energy for their emissions reduction needs across Canada. This means working closely with buyers and developers of renewables and assisting them in shortening their learning curves as they figure out the best path to power purchase agreements. Our growing organization currently has about 50 participants from across all sectors of the Canadian economy.
Contact
Hanneke Brooymans
Senior Communications Lead, Business Renewables Centre-Canada
587-336-4396
Background material
Blog: Clean energy's magnetism can bolster a shaky market
Report: 2024 Renewables in Review
Statistics: See our Deal Tracker web page for quarterly updates on community benefits
For more information
#802, 322 – 11 Avenue SW
Calgary Alberta
Canada T2R 0C5
businessrenewables.ca/
