Alta. solar policy puts farming first

“Our unique deregulated electricity market and competitive tax system mean that we are Canada’s hub for investment, and we want our province to remain the jurisdiction of choice for investors,” said Premier Danielle Smith.

“But growing our renewable energy industry must happen in well-defined and responsible ways.”

A policy guidance outlining the provincial government’s new approach was detailed in a letter sent to the Alberta Utilities Commission (AUC) by Nathan Neudorf, the province’s minister of affordability and utilities. It was announced by Smith and Neudorf during a news conference Feb. 28, a day before provincial officials ended a seven-month moratorium on final approvals of large renewable energy projects.

Alberta will no longer allow such projects on Class 1 and 2 land unless they can demonstrate crops and/or livestock can co-exist with them, said Smith.

“Our government will establish the tools necessary to ensure Alberta’s native grasslands, irrigable and productive lands continue to be available for agricultural production.”

Hearings were held and input was gathered during the moratorium as part of a public inquiry by the AUC, which is slated to file its second and final report to the provincial government by the end of March.

Neudorf said provincial officials plan to bring forward policy, legislative and regulatory changes by the end of 2024.

“Let me be clear. There will be no blanket bans on specific types of land. Instead, we are being responsible by ensuring that renewable energy projects do not sterilize agricultural lands.”

As someone who has a wind turbine and about 10 solar panels that generate electricity for his own use on his farm, Paul McLauchlin, president of the Rural Municipalities of Alberta, said he is not against renewable energy. Solar and wind on both small and large scales offers a “tremendous opportunity” for rural communities and producers to cut electricity bills and earn much-needed revenue that could help stabilize multi-generational farms, he added.

However, the boom in large-scale renewable energy developments in Alberta is inherently industrial in nature, he said.

“They’re a change in land use, and having that land use discussion is important. We should value Class 1 and Class 2 soil. I think it’s important to understand that soil type is just part of the discussion.”

Rural municipalities fear they will end up footing the bill for reclamation once aging solar and wind projects are retired after the companies that operated them are defunct or go bankrupt, said McLauchlin. He pointed to the billion-dollar headache caused by orphan oil and gas wells.

Smith said errors were obviously “made in the past on how to address the issue of future liability for oil and gas, so you don’t correct that problem by compounding it when you have a new opportunity to create an approach that perhaps the oil and gas industry should have had from the beginning.”

Neudorf said renewable energy developers will be “responsible for reclamation costs via a bond or security, protecting landowners’ rights. This bond will be provided directly to the Government of Alberta or may be negotiated with the landowner if sufficient evidence is provided to the AUC.”

Buffer zones of at least 35 kilometres will also be created around protected areas and other pristine landscapes as designated by the provincial government, said Smith.

“New wind projects will no longer be permitted within those buffer zones, and other proposed developments located within the buffer zones may be subject to a visual impact assessment before approval.”

She said municipalities will also be given a voice in the approval process by “automatically granting them the right to participate in AUC hearings and allowing them to review rules related to municipal submission requirements while clarifying consultation requirements. In addition, we will enable municipalities to be eligible to request cost recovery for participation and review.”

Contact doug.ferguson@producer.com