NDP energy critic Kathleen Ganley discusses the current moratorium on renewable power project approvals in Medicine Hat on Wednesday.--News photo Collin Gallant
cgallant@medicinehatnews.com@CollinGallant
Critics are pointing out the potential impact of halting new green energy projects within the riding of Premier Danielle Smith, but the government is calling the analysis partisan.
United Conservative officials are also pointing to polls that suggest the pause until early 2024 on giving the regulatory OK for wind and solar projects is popular in rural areas is welcomed, though the New Democrats respond that the unusual moratorium will hurt rural interests.
Kathleen Ganley, the NDP’s critic for energy and climate change, told reporters Wednesday that Smith, the Brooks-Medicine Hat MLA, should be working to bring investment into the region, but is causing uncertainty instead.
“It’s a significant impact,” said Ganley, citing Pembina Institute estimates that 23 utility-scale projects in the southeast region are caught up in the process. Cumulatively, they represent $10 billion in investment and require 7,000 workers to build them, according to industry estimates.
“If an MLA had that going on in their riding you’d think they would be advocating to change the decision, but in this case you have the premier representing the riding,” said Ganley. “It’s problematic when she’s making decisions like this.”
The NDP and many in the renewable utility sector have said the pause is damaging to Alberta’s reputation and causing worry for investors.
The government claims that a review, conducted by the Alberta Utilities Commission, only captures 13 projects province-wide in late approval stages – not the 118 listed in the Pembina study – and will be concluded before the 2024 construction season begins.
“The NDP is deliberately confusing the public by not using the list of projects available from the AUC,” reads a statement provided from the Ministry of Affordability and Utilities. “The pause will help set a regulatory standard for all projects, now and into the future.”
Polling firm Angus Reid released findings on Thursday that 47 per cent of Albertans believe the pause is a good or very good idea, 40 per cent think it’s a bad or very bad idea and 13 per cent are unsure.
Slightly more Edmontonians believe it to be a bad idea, but in areas outside major centres, 55 per cent support the pause and only 5 per cent were unsure.
Analysis by the News found at least five regional projects on the Pembina list are awaiting approval in southeast Alberta, with others in advanced development stages.
Most Cypress County councillors have endorsed the review. The County of Forty Mile issued a statement saying it supports such power projects but also examining the regulatory framework.
Both local governments stand to substantially increase their industrial tax base if the Aira and Aura solar projects move forward within their boundaries.
The largest is the Luna Solar+battery project proposed by GreenGate Renewables.
It plans to build a two-phase solar project on land east of Brooks and could involve a $3-billion investment, according to Pembina, and as many as 800 jobs during construction. It could also pay $9 million per year in taxes.
City of Medicine Hat officials have not stated an opinion on how the pause may affect the privately-led Saamis Solar farm that would be built inside city limits, if approved.
Pembina states the DP Energy project would cost $486 million to build, based on industry standard estimates, and require 400 workers.
“There’s a huge benefit to counties and municipalities,” said Ganley, citing a diversified tax base and general economic activity. “If they don’t get the tax revenue from these types of projects, that falls on other taxpayers to cover that difference.
“The other impact is that most analysis on skyrocketing power prices says that economic withholding (by gas-powered generators) is part of the picture. Renewable generation is extremely inexpensive and it’s new generation.”
