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With Alberta renewables ban, business common sense goes out the window

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    With Alberta renewables ban, business common sense goes out the window

    opinion
    Duane Bratt
    Special to The Globe and Mail
    Published YesterdayUpdated 4 hours ago

    Duane Bratt is a political science professor in the department of economics, justice and policy studies at Mount Royal University in Calgary.

    Investment creates jobs, expands tax revenue, produces spin-off benefits, and, in the case of electricity generation, lowers consumer prices. This is why Alberta has international trade offices and why the Premier and cabinet make foreign trips. The province also markets itself to investors: low-housing costs (at least when compared with Toronto and Vancouver), educated work force, political stability, high-quality amenities and gorgeous scenery.

    Therefore, it is surprising that Alberta announced a set of rules on Feb. 28 designed to drive out billions of dollars in potential investment in one globally-growing sector: renewable energy.

    In August, 2023, the UCP government announced a seven-month moratorium on renewable energy projects. This halted an estimated 118 projects at some stage of planning, worth a combined $33-billion ([url]https://www.pembina.org/reports/2023-08-24-albertas-renewable-energy-moratorium-factsheet.pdf[/url]), while the Alberta Utilities Commission (AUC) designed new rules. On Wednesday, those new rules were rolled out. They were designed to protect prime agriculture land from solar and wind farms, protect Alberta’s “pristine viewscapes,” provide funds for reclamation, and fund municipalities’ participation in AUC hearings (paid for by project proponents).

    On the surface, there is nothing wrong with these rules. However, dig deeper down and there are fundamental problems.

    First, these rules will make achieving future renewables projects very difficult. For example, the windiest part of the province is in the south. But the 35-kilometre buffer zone around protected areas means that about 75 per cent ([url]https://www.pembina.org/media-release/alberta-hamstrings-renewables-sector-rules-not-required-other-industries[/url]) of Southern Alberta would be off limits to wind farms.

    Second, the new rules only apply to renewable energy, and not to oil and gas development, which dominates the province. For example, Alberta has over 170,000 ([url]https://www.aer.ca/regulating-development/project-closure/suspension-and-abandonment/how-are-wells-abandoned[/url]) orphaned and abandoned wells and it is estimated that it will cost at least $60-billion ([url]https://www.policyschool.ca/wp-content/uploads/2023/10/EFL-49A-AB-ConvenOGLiabilityRegime.YewchukFluker.pdf[/url]) (and likely more) to properly clean them up. Strict regulations around wind and solar reclamation are fine, but should they not also apply to the much more serious problem of abandoned oil wells?

    Third, Alberta is telling private landowners what they can and cannot do with their property. Tellingly, landowners find it very difficult to prevent oil and gas development on their property (because they do not own the subsurface rights), but they could be blocked from allowing a solar or wind farm on their property. For a UCP government that often talks about the sanctity of property rights, removing them to harm a particular sector is instructive.

    Fourth, while the purpose of the rules is to preserve prime agricultural land, an analysis shows that if all the new solar farms neededto get Alberta to net-zero electricity by 2035 were on unirrigated crop land, their total footprint would only be 0.15 per cent ([url]https://www.policyschool.ca/wp-content/uploads/2023/10/EE-TRENDS-SOLAR-OCT.pdf[/url]).

    At the heart of Alberta’s new rules is the fact that the provincial government simply does not like renewable energy. Prior to the moratorium, Alberta, at over 75 per cent, was the top destination for renewable energy projects in Canada. However, the August, 2023, mortarium sent a strong signal to renewables companies that they should consider investing elsewhere. The new rules solidified that point.

    Why is renewables investment undesirable? Well, renewables are seen as competitors to oil and gas. In contrast, oil and gas companies support new technologies such as carbon capture and storage and small modular reactors (which have not had additional regulations attached to their development), because those are seen as complementary.

    There have been accusations for years that the Alberta government has been captured by the oil and gas sector. For instance, the Alberta Energy Regulator is widely seen as an organization that is not independent, but overtly supports the industry ([url]https://www.cbc.ca/news/canada/edmonton/alberta-oil-well-liability-energy-regulator-1.7088683[/url]). In addition, current and former oil and gas executives and lobbyists are situated throughout the present government, including Premier Danielle Smith and other elected politicians, staffers, and advisers.

    Soon after becoming Premier in October, 2022, Danielle Smith even floated an idea that she first proposed as a lobbyist: giving multimillion-dollar royalty breaks ([url]https://www.cbc.ca/news/canada/calgary/opinion-leach-danielle-smith-r-star-orphan-wells-oil-gas-1.6633643[/url]) to oil companies to clean up the wells that they were already legally responsible for. Ms. Smith has repeatedly proclaimed that Alberta is a “natural gas province.” ([url]https://edmonton.ctvnews.ca/we-are-a-natural-gas-province-smith-says-alberta-needs-power-plants-not-wind-and-solar-1.6324424[/url])

    And of course, the repeated political fights with Ottawa over oil pipelines, net-zero electricity regulations by 2035, or an emissions cap for the oil industry. These fights have included fierce rhetoric, legal challenges, and even the passing of the Sovereignty Act, which was designed to thwart federal laws and policies that the province believes are unconstitutional. The decision on renewables is just another important data point.

    The UCP government brands itself as a pro-business party that provides significant benefits to the Alberta economy. But by taking concrete steps to prevent billions of dollars in investment – because they do not like the type of investment, for spurious reasons – the UCP is showing itself to be a government that can be nothing else other than pro-oil and gas.
    ?
    Last edited by chuckChuck; Mar 1, 2024, 07:23.

    #2
    So what happened to pro business free market thinking in the UCP's Alberta? Gone!

    What happened to reducing red tape and onerous regulation that discourages investment? Gone!

    What happened to landowners property rights to choose what they can do with their land in Alberta? Gone

    What happened to the idea that land development rules should equally apply to all industries, including oil and gas? Gone!

    What happened to common sense and fairness in Alberta? Gone

    What should happen to Danny Smith and her regressive conservatives who are against business investment and landowners rights?

    They should be gone!

    Because they just again showed their true colours as in only working for the interests of the oil and gas industry.


    Last edited by chuckChuck; Mar 1, 2024, 08:30.

    Comment


      #3
      So where are all the defenders of the free market and property rights?

      Sure are a lot of pretenders in Alberta!

      Comment


        #4
        Originally posted by chuckChuck View Post
        So what happened to pro business free market thinking in the UCP's Alberta? Gone!

        What happened to reducing red tape and onerous regulation that discourages investment? Gone!

        What happened to landowners property rights to choose what they can do with their land in Alberta? Gone

        What happened to the idea that land development rules should equally apply to all industries, including oil and gas? Gone!

        What happened to common sense and fairness in Alberta? Gone

        What should happen to Danny Smith and her regressive conservatives who are against business investment and landowners rights?

        They should be gone!

        Because they just again showed their true colours as in only working for the interests of the oil and gas industry.

        Typical over the edge reaction from you ….. Trudeau like response again

        Comment


          #5
          Where do I start. First off, this billions of dollars of investment really is a false narrative. If I am running a Chinese solar panel factory, then yes the billions dollars of investment rings true. But what that is Canadian made is installed on these solar fields? I guess the concrete that the panel racking is mounted on, except most cement powder is also imported from China. So the panels, the inverters, transformers all come from China. So this billions of dollars of investment is a misnomer. Windmills, manufactured in Europe, the United States or China. So same story. There is certainly a huge divide between rural and urban on this. Most if not all companies building renewable installations a Canadian subsidiaries of foreign generally European companies going from country to country looking for the best place to get government subsidies. What is the residual benefit after construction? A few maintenance jobs? The foreign companies like Copenhagen Infrastructure Partners have more carbon credits to sell in a government created market place? Truly a blight on the rural landscape.

          Comment


            #6
            As for landowner property rights, if I want to expand my feedlot or build a livestock confinement facility I had to jump through all sorts of hoops as well as getting approval from my neighbours and I am restricted from building in certain areas. I see no problem with keeping solar fields off of number 1 and 2 soil. It would be nice if the same could apply to urban sprawl. As for oil and gas leases they don’t cover sections of land. I can farm around them.

            Comment


              #7
              Oh no! * clutching pearls* 75% of southern alberta would be off limits? Whatever will they do if they ...gasp....cant build on the other millions of square miles? Eeek!

              But but but.. they would only need to convert 3% ( i believe j read that 3% number.) of all irrigated acres ( 3% is alot considering its something like 1.8 million acres that are irrigated in alberta...) to achieve net zero ( if we had the battery storage capability and the panels worked 24/7.

              But but but.. itll drive off investment! Will it? Honestly.. some of this " investment" is utter hogwash. Stellantis battery plant was going to be what for tax payers.. a billion dollar investment? Big deal.

              Its all subsidized and half these companies leave the land owners and municipalities on the hook when they go bankrupt ( see; England and TOUCAN energy left owing taxpayers 690 million pounds ( 1 billion canadian).

              Last time i checked the wind blows and sun shines on allllll the other acres of garbage land in southern alberta and the rest of our fine province.

              In other more important UCP bashing news ( i do, personally, despise danielle smith)..

              1)oil and gas companies missed out on roughly 46 million in tax dollars owed to municipalities. This is effing criminal and every municipality should be putting a lean on those wells. Preventing THIS is what needs to be looked at in regards to future drilling and any renewable resource builds.

              2) they just scrapped the south edmonton hospital built. F%CK YOU DANIELLE. 8 hr waits in st albert and sherwood park to see a doctor at the er. And you scrap a hospital build in the area of edmonton ( southside) that is the fastest growing area in alberta, if not Canada.

              3) urban sprawl. Anyone living in alberta...take a drive and see the hearthstone build on highway 21 between fort saskatchewan and sh pk
              Primo primo primo farmland taken out of production and 500 k lots being built on with the houses about 1 penis length apart. 3 miles outside of sh pk and across a major highway ( when south of sh pk is alllll marsh and perfect land to expand on) THIS is ( in my mind) more of a threat to farmland than renewable builds. Urban sprawl.

              land owner property right lol. Riggghhhtttt.... you know if someone comes on your land in alberta and you dont have no trespassing signs up, and they hurt themselves or fall in an old well, YOU can get sued by that trespasser.
              landowner property rights. Lol.

              Comment


                #8
                USA TODAY’s analysis found 15% of counties nationwide now have some impediment to new utility-scale wind and solar energy.
                From a recent article.
                NIMBY ? Or reality?

                Comment


                  #9
                  You missed the TAX on EV bullshyt! High time but closer to actual road tax be $2000/year.

                  Comment


                    #10
                    upchuck misses the fact that there was no business case for most of the 'renewables' investment in the first place. The only reason the wind farms were built in the first place was graft from the large emitters fund. This is the carbon tax on electricity in Alberta. If this scam is shut down, then there would be federal carbon tax on power bills in Alberta, so that is why there is reluctance to shut down this scam.

                    Comment


                      #11
                      A tax to make more Belarus tractors doesn't make them better. It is seldom about better tractors.

                      Comment


                        #13
                        Do you have a Belarus tractor around there Chuck?

                        Not very usefull, but they are cheap.

                        Comment


                          #14
                          Originally posted by shtferbrains View Post
                          Do you have a Belarus tractor around there Chuck?

                          Not very usefull, but they are cheap.
                          And unreliable, just like wind and solar. And also, just like wind and solar energy, you need to have one or more backup tractors for the Belarus for when it randomly besides to exhibit its unreliableness.

                          In the end, it is more expensive.
                          But cost per capacity on paper sure looks good.

                          Comment


                            #15
                            Junk solar and wind power

                            Comment

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