We are mere weeks into the province’s announcement the Alberta Utilities Commission (AUC) is implementing a six-month moratorium on new renewable energy projects, which has left big voices at even greater odds over the positives and negatives of this decision..Those in agreement applaud the provincial government, maintaining a framework to handle these projects is long overdue..We need to examine the impacts of these projects on ag and Crown lands, what happens to these projects at end-of-life cycle and how they are impacting the affordability of our grid..Opponents are going hard on the financial impacts, stating this decision is halting billions in investment and arguing consultations could be proceeding without a moratorium..There are five major problems with the Alberta grid today. Understanding these issues is to understand what drove the AUC to implement this pause on new renewable energy projects..First, power pool prices more than doubled recently, spiking much higher..Second, wind and solar capacity has roughly doubled in the last year. Regardless of the root cause, there is a price correlation that cannot be ignored..Third, some wind and solar companies act as if they have a pass on community acceptance..It has been clearly demonstrated many local communities do not feel as though they have been properly consulted. History has shown us proper community consultation — including First Nations — is essential for such industries as mining, oil and gas and forestry, so how can any wind and solar company feel they are above that?.Fourth, the 'one price fits all' bidding system is flawed. While it is helpful for interruptible power to receive a reasonable price, the system is open to manipulation by all power producers, especially those with a 'possessorship' when power supply is low..It’s much like paying top dollar for a steak at the grocery store, instead of the advertised sale price — because the wind doesn’t always blow and the sun doesn’t always shine..Fifth, the federal government just turned off the taps on Alberta’s solution to the problem, through their clean electricity regulations. They did this, knowing full well our province intended to bring on more natural gas power plants to replace coal, which would have provided back-up power and increased competition in the power pool..My hope is a greater understanding will bring Albertans together and wind and solar companies will recognize the importance of being good corporate citizens and how system reform and a framework can allow them to move forward in a way that works for everyone..Alberta is embroiled in an ideological battle with Ottawa, led by Environment and Climate Change Minister Stephen Guilbeault, whose long, eco-radical history includes leading far-left Equiterre through a campaign to impose a moratorium on natural gas exploration in Quebec, which only led us to higher emissions..His approach, putting ideology ahead of all, is now driving his clean electricity grid regulations, which has Alberta and Saskatchewan up in arms as being "unconstitutional and irresponsible” — as well as unaffordable and unreliable..The real implications of Guilbeault’s new clean electricity regulations mean it will be nearly impossible to get a final investment decision on new gas plants until carbon capture is established and peaking power plants won’t really be justified at all..Alberta has emphatically committed to achieving clean electricity by 2050, arguably a much more realistic timeline in order to achieve energy security and maintain competitiveness in the industrial sector..Canada has among the cleanest electricity systems in the world and Alberta is ahead of schedule on phasing out coal..If we are to continue to attract more investment into renewable projects, it only makes sense a framework is established and everyone knows the rules to move forward together in a manner that is best for the environment, Albertans and Canadians..Lindsay Wilson is President of Alberta Proud
We are mere weeks into the province’s announcement the Alberta Utilities Commission (AUC) is implementing a six-month moratorium on new renewable energy projects, which has left big voices at even greater odds over the positives and negatives of this decision..Those in agreement applaud the provincial government, maintaining a framework to handle these projects is long overdue..We need to examine the impacts of these projects on ag and Crown lands, what happens to these projects at end-of-life cycle and how they are impacting the affordability of our grid..Opponents are going hard on the financial impacts, stating this decision is halting billions in investment and arguing consultations could be proceeding without a moratorium..There are five major problems with the Alberta grid today. Understanding these issues is to understand what drove the AUC to implement this pause on new renewable energy projects..First, power pool prices more than doubled recently, spiking much higher..Second, wind and solar capacity has roughly doubled in the last year. Regardless of the root cause, there is a price correlation that cannot be ignored..Third, some wind and solar companies act as if they have a pass on community acceptance..It has been clearly demonstrated many local communities do not feel as though they have been properly consulted. History has shown us proper community consultation — including First Nations — is essential for such industries as mining, oil and gas and forestry, so how can any wind and solar company feel they are above that?.Fourth, the 'one price fits all' bidding system is flawed. While it is helpful for interruptible power to receive a reasonable price, the system is open to manipulation by all power producers, especially those with a 'possessorship' when power supply is low..It’s much like paying top dollar for a steak at the grocery store, instead of the advertised sale price — because the wind doesn’t always blow and the sun doesn’t always shine..Fifth, the federal government just turned off the taps on Alberta’s solution to the problem, through their clean electricity regulations. They did this, knowing full well our province intended to bring on more natural gas power plants to replace coal, which would have provided back-up power and increased competition in the power pool..My hope is a greater understanding will bring Albertans together and wind and solar companies will recognize the importance of being good corporate citizens and how system reform and a framework can allow them to move forward in a way that works for everyone..Alberta is embroiled in an ideological battle with Ottawa, led by Environment and Climate Change Minister Stephen Guilbeault, whose long, eco-radical history includes leading far-left Equiterre through a campaign to impose a moratorium on natural gas exploration in Quebec, which only led us to higher emissions..His approach, putting ideology ahead of all, is now driving his clean electricity grid regulations, which has Alberta and Saskatchewan up in arms as being "unconstitutional and irresponsible” — as well as unaffordable and unreliable..The real implications of Guilbeault’s new clean electricity regulations mean it will be nearly impossible to get a final investment decision on new gas plants until carbon capture is established and peaking power plants won’t really be justified at all..Alberta has emphatically committed to achieving clean electricity by 2050, arguably a much more realistic timeline in order to achieve energy security and maintain competitiveness in the industrial sector..Canada has among the cleanest electricity systems in the world and Alberta is ahead of schedule on phasing out coal..If we are to continue to attract more investment into renewable projects, it only makes sense a framework is established and everyone knows the rules to move forward together in a manner that is best for the environment, Albertans and Canadians..Lindsay Wilson is President of Alberta Proud
