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CALGARY — Large companies that purchase renewable energy are skipping Alberta’s uncertain investment climate, according to data compiled by the Business Renewables Centre-Canada (BRC-Canada).  

As the third quarter of 2024 wraps up, BRC-Canada's Deal Tracker has logged just one power purchase agreement (PPA) this year.  

“This is the slowest pace of corporate procurement since BRC-Canada was formed in 2019,” said Jorden Dye, BRC-Canada's director. “The Alberta renewables market is sending a clear distress signal via the data.” 

This trend in Alberta stands in stark contrast to what is happening in the rest of the world. Companies are cutting big deals for clean energy in 2024, agreeing to purchase a total of 22.1 gigawatts in the first six months, which is more than a third higher than the same period a year earlier. 

The frozen Alberta market has implications for ratepayers. PPAs add substantial wind and solar power to our electricity grid and support the development of renewable energy beyond what the companies directly need, meaning additional affordable energy is fed into the provincial electricity grid reducing costs for all Albertans. Thirty-four per cent of new installed generation since 2019 was made possible by corporate renewable energy procurement.  

A slowdown in clean energy buildout also means Alberta becomes less attractive to 21st century, cutting edge businesses, such as data centres. Companies building data centres often require renewable energy to power their energy-hungry operations. The Alberta Electric System Operator (AESO) recently said it had at least six proposed applications for data centres in its application queue. If they all went ahead, these facilities would require about 2,000 megawatts (MW) of electricity. 

These 2,000 MW could most rapidly be added to the grid via wind and solar projects, rather than through natural gas power plants.  

But how can the provincial government boost confidence in its renewable energy market again? 

“There are a few things the Alberta government can do to quickly right the ship and reinject some energy back into the market,” Dye said. 

BRC-Canada's suggestions are all intended to reduce the uncertainty that is stifling the market. The suggestions are summarized in this graphic and outlined below: 

Reduce red tape   

• clarify definition of pristine viewscapes   

• explain agricultural land restriction standard of “coexistence” with crops or livestock that will be required on Class 1 and 2 land and cease policy development to add restrictions beyond Class 1 and 2 land   

• protect advanced stage projects that were previously approved   

 Settle up: clear up cost and profit expectations   

• Reclamation security requirements need to be spelled out, generator transmission costs need to be clarified, and predictable administrative charges should be defined for line losses, the power lost during transmission and distribution.  

• Market mechanisms need to be defined. Energy producers need to know how the day-ahead market will work, the scale of risk on negative pricing, and whether or not the government will sign long-term contracts or invest public funds directly in its preferred technologies.  

All Albertans have an interest in powering up this industry again. Wind and solar power produce clean, reliable, affordable energy and projects provide tax revenues to host communities, as well as payments to landowners.   

Jorden Dye, director of BRC-Canada, is available for comment. 

Quick facts 

• Between January 2019 and June 30, 2024, 3.31 gigawatts (GW) of renewable energy have been purchased through corporate power purchase agreements, enabling a total of 4.1 GW of project capacity. This equates to 12,400 gigawatt-hours per year of energy provided, leading to the creation of: 
   
  • 6,200 jobs,  
  • $6.4 billion in capital investment, and  
  • production of enough energy to power 1.7 million homes. 
     
• In 2024, there has been only one power purchase agreement so far.  

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 60 participants from across all sectors of the Canadian economy.     

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Contact  

Hanneke Brooymans  
Senior communications lead, Business Renewables Centre-Canada
587-336-4396  
  

Background  

Infographic: Injecting Energy Back into Alberta’s Renewables Market (embed link when posted)  

Statistics: See our Deal Tracker web page for quarterly updates on community benefits