Alberta’s Ban on Renewables Could Result in C$11bn Investment Loss

1. Ban imposed by Alberta government could cost C$11.1bn in lost clean energy investment.
2. New rules could impact up to 6.3GW of new solar and wind power capacity.
3. Premier Danielle Smith’s government is at odds with Canadian Prime Minister Justin Trudeau over renewable energy regulations.

A recent study conducted by the Pembina Institute revealed that the ban imposed by the Alberta government in Canada on certain renewables projects could lead to a loss of C$11.1bn ($8.24bn) in clean energy investment and halt the development of up to 6.3GW of new solar and wind power capacity. The restrictions announced on 28 February target projects impacting high-quality agricultural land and scenic viewscapes, potentially affecting 42 projects, with nine already awaiting regulatory approval.

The ban prohibits the use of Class 1 and 2 agricultural land and mandates buffer zones around protected areas and pristine viewscapes where wind farms will no longer be permitted. The study identified 36 solar projects and six wind projects that could be impacted by the agricultural land classification restriction, totaling 6.3GW of renewable energy capacity that would almost double the state’s current capacity and create up to 9,360 new jobs.

The restrictions have caused tension between Premier Danielle Smith’s provincial government and Prime Minister Justin Trudeau’s federal government, which is working towards making provinces net zero by 2035. In January, Alberta faced power shortages during severe winter weather, prompting concerns about the sufficiency of the province’s power supply to avoid electricity shortfalls.

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