Alberta’s energy sector comprises of the oil, gas, and power industries, fuels hundreds of thousands of jobs and billions of dollars in investment. As a result, despite macroeconomic headwinds, Alberta’s economy remains resilient and a major driver of Canada’s economic growth. Ongoing provincial and federal regulatory changes are having widespread impacts within and beyond the energy sector. In response, investments by the energy sector have achieved remarkable advancements in renewable energy and cleantech.
Canada’s Emission Reduction Goals
The energy sector is in part motivated by targets set by Canada for the oil and gas industry to decrease their emissions by 42% below current levels by 2030 and for the power industry to have Canada’s electricity grid reach net-zero by 2035. To achieve such ambitious goals, the energy sector is currently investing in renewable energy and green projects, from wind and solar power to clean technologies like carbon capture, utilization, and storage.
One consequential update in Alberta is the Province recently issuing a guidance letter that will implement new rules for the development of renewable energy projects. Under these rules, the location of renewable projects will be restricted by the implementation of buffer zones (for protected areas and designated “pristine viewscapes”) and an ‘agriculture first’ approach. With these rules, renewable project developers will need to consider the additional costs associated with project approval, such as allocation of transmission costs, reclamation security requirements and automatic participation rights of municipalities in regulatory proceedings. While Alberta has significantly contributed to Canada’s overall growth in new renewable generation and storage capacity in recent years, news reports indicate that these rules are having a chilling effect on investment in new renewable projects. Accordingly, the full potential impact of these rules on renewable energy investment in Alberta will only be determined once more detailed rules are released.
In parallel with the implementation of these new rules, the Province is undertaking mandates to modernize its electrical grid in anticipation of increased electrical demand. Recent changes to electric power legislation have established a formal process for approving the construction and operation of energy storage facilities. These changes, as well as current and forthcoming legislative demands to curb emissions, further add to the regulatory burden and uncertainty to project completion timelines and budgets within Alberta’s energy sector.
BD&P Helps Energy Companies Navigate Requirements
Despite the ambitions of investors in projects involving renewables and cleantech, the changing regulatory space around requirements and project approvals requires experienced advice and legal counsel. BD&P lawyers monitor progress on the rapidly developing regulatory space to advise Canada’s most prolific energy entrepreneurs and major national and international corporations. With over 100 years of experience helping clients navigate Canada’s ever-changing energy industry, Chambers Global has named BD&P as a worldwide leader in the Oil and Gas and Energy Sector (International Cross-Border) in the 2024 rankings.
Contact Robyn Bews to learn more about how we can help your business navigate the evolving energy industry landscape.