The Politics and Transparency of Renewable Energy Subsidies in Alberta

Renewables in Action

Alberta’s energy sector is at a crossroads. Once defined by its oil and gas dominance, the province is now a battleground for the politics of renewable energy subsidies, a debate that reveals deep ideological divides and has major implications for investment, jobs, and Alberta’s future as an energy leader.

A Shifting Landscape: From Ambition to Uncertainty

Alberta was once an ambitious player in renewables. The Renewable Electricity Act set a target for 30% of the province’s electricity to come from renewables by 2030, and the Renewable Electricity Program (REP) attracted billions in investment and created thousands of jobs between 2019 and 2023.

But politics shifted. The United Conservative Party (UCP) has long viewed REP as an unnecessary subsidy, arguing that a truly competitive market should not require government intervention. Their stance: Alberta’s wind and solar resources are strong enough to compete on their own. Proponents counter that REP delivered some of the lowest renewable electricity prices in Canada—and even resulted in payments back to the province when market prices exceeded contract rates.

The 2023 Moratorium: Ideology Meets Economics

In August 2023, Premier Danielle Smith’s government imposed a seven-month moratorium on new renewable project approvals, citing concerns about land use, agriculture, and “pristine viewscapes.” The Alberta Utilities Commission (AUC) was tasked with an inquiry, halting all projects over one megawatt. Critics, industry leaders and academics alike argued that these justifications lacked evidence.

The impact was immediate: more than 50 renewable projects were cancelled, a fivefold increase in cancellations compared to previous years. New rules, such as a 35-kilometre buffer zone for wind projects and restrictions on agricultural land, further constrained development. Many see these as disproportionate compared to regulations on fossil fuel projects, raising concerns about Alberta’s competitiveness in renewables.

Subsidies: Level Playing Field or Market Distortion?

The debate over subsidies is at the heart of Alberta’s energy politics. Supporters of renewables argue that incentives are necessary to level the playing field, especially given the longstanding support for oil and gas. Renewables, they note, now offer the cheapest new electricity and are key to attracting future investment and jobs.

Opponents, including the current government, contend that subsidies distort the market and that renewables should stand on their own merits. They point to Alberta’s world-class wind and solar resources as sufficient to attract investment without government support.

Show Me the Money: Renewables vs. Oil & Gas Subsidies

The numbers tell a stark story:

Oil & Gas Subsidies:

• Alberta's oil and gas industry receives an estimated $1.6–$2 billion per year in provincial subsidies, including tax incentives, royalty reductions, and direct investments.

• Crown royalty reductions alone are valued at over $1.1 billion annually.

• Nationally, the federal government provided at least $18.5 billion in fossil fuel support in 2023, including major projects like carbon capture and the TransMountain pipeline.

• Over the last four years, federal support for oil and gas totaled at least $65 billion, enough to fund every major wind and solar project in Canada from 2019–2021 twelve times over.

Renewable Energy Subsidies:

• In contrast, direct government support for renewables in Alberta is described as “insignificant by comparison.”

• Since 2019, Alberta’s renewable projects have attracted nearly $5 billion in investment and created close to 5,500 jobs, driven largely by market competitiveness and federal programs, not provincial subsidies.

• The federal Smart Renewables and Electrification Pathways Program (SREPs) has supported 49 projects with over $660 million in Alberta.

• In 2023 alone, more than $1.6 billion in renewable projects were completed, with capacity growing from 3,028 MW in 2019 to 6,614 MW in 2023.

Sector	Annual Subsidies (Alberta)	Federal Support (Recent Years)	Notes
Oil & Gas	$1.6–$2 billion	$18.5B in 2023	Tax breaks, royalty reductions, CCUS
Renewables	Insignificant by comparison	Some federal programs	Market-driven growth, minimal subsidies

Transparency: The Missing Piece

Transparency is a major issue. Neither Alberta nor the federal government provides detailed, public accounting of fossil fuel or renewable energy subsidies. Provincial subsidies, often in the form of tax breaks, royalty reductions, and grants, are not systematically disclosed. This opacity makes it difficult to quantify support, evaluate effectiveness, or align with climate goals. Calls for clear, comprehensive reporting have gone unanswered, hampering public debate and policy evaluation.

Hidden Subsidies: The Role of Secret Deals and NDAs

It’s not just what’s reported that matters, often, it’s what’s hidden. Many subsidies and incentives are not reflected in official government reports. Here’s why:

• Non-Disclosure Agreements (NDAs): Governments and economic development agencies frequently sign NDAs with corporations, preventing the disclosure of specific details about subsidy deals, including the identities of recipients, the amounts granted, and the terms of the agreements. This practice is widespread and can obscure the true scale of public financial support.

• Opaque Reporting Practices: Many incentives, such as tax abatements, regulatory waivers, and indirect financial benefits, are negotiated privately and not systematically reported in public documents or; because subsidies from the various levels of government from villages, towns and cities up to municipal and provincial levels are not being aggregated in a single unitary and comprehensive list of, there is no means of truly measuring or reporting these additional incentives.

• Lack of Comprehensive Accounting: Official reports often focus only on direct subsidies, omitting indirect or less-visible forms of support (like preferential land deals, infrastructure improvements, or regulatory exemptions).

• Limited Public Oversight: In many jurisdictions, there is no legal requirement for governments to provide a full, detailed accounting of all forms of business incentives.

  
  

High-profile cases, such as Amazon’s HQ2 bidding process, illustrate the aggressive and pervasive use of NDAs, sometimes extending even to third parties like university researchers or local business staff who might become aware of the negotiations. This routine use of NDAs is widely criticized for undermining transparency and public accountability.

The Road Ahead

Alberta’s renewable energy politics are a microcosm of the global tension between tradition and transition. Recent policy shifts have created uncertainty for investors and developers, risking the economic and environmental benefits that renewables can deliver. As other jurisdictions move forward with supportive policies, Alberta’s stance on subsidies and regulation will determine whether it remains a leader or falls behind in the clean energy transition.

Key Takeaways

• Alberta’s renewable energy subsidies are highly politicized and far smaller than those for oil and gas.

• The 2023 moratorium and new restrictions have created significant uncertainty, leading to project cancellations and concerns about investment and jobs.

• Transparency in subsidy reporting is lacking, making it difficult to track or compare public financial support.

• Hidden subsidies and secret deals, often protected by NDAs, further obscure the true scale of government support.

• The debate is deeply ideological, reflecting broader questions about Alberta’s economic future and the role of government in energy markets.

  
  

As Alberta navigates these challenges, the politics, and transparency of renewable energy subsidies will remain a defining issue for our energy future, and for the province’s place in the global energy transition.

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