Why Alberta’s Renewable Moratorium Backfired; Badly!

Agrivoltaics in Action

By Larry Peters - Big Rock Power - June 2025

Hot Take: The pause on renewables wasn’t about farmland or views, it was political theatre that cost us investment and jobs, and exposed a glaring double standard in environmental liability.

For seven months, from August 2023 to February 2024, Alberta's burgeoning renewable energy sector was brought to a grinding halt by a moratorium on new project approvals. Ostensibly enacted to address concerns about land use, reclamation, and "pristine viewscapes," this abrupt policy shift by the Alberta government has, in hindsight, proven to be a profoundly misguided exercise in political theatre with severe economic repercussions.

Far from fostering "orderly development," the moratorium has instead cultivated an environment of uncertainty, leading to cancelled projects, job losses, and a palpable flight of investment from a province once leading Canada in renewable energy growth.

While the Alberta government pounds the table demanding more pipelines and freer access to tidewater for our non-renewable resources, we leave billions of dollars on the table for other jurisdictions to sweep up and use in their own regions or countries.

Capital flight is a real and worrying concern and when capital leaves, jobs and prosperity disappear with it.

A Surprise Pause, The Lasting Fallout

In August 2023, Premier Danielle Smith’s Conservative government imposed a seven-month moratorium on renewable project approvals.

The result? A dramatic plunge in investor confidence that would make any 3rd world, tin-pot dictator blush. With of course, the possible exception of the US government where they seem to take pride in this type of action; but that’s another story.

A Pembina Institute analysis says 53 projects, totaling over 8,600 MW of wind and solar capacity, were abandoned, with another 42 delayed an average of 15 months. This was Alberta’s first-ever pipeline contraction. Our renewable sector, once Canada’s fastest growing, abruptly fell to its knees as it tried to cope with the inevitable fallout.

Even after the official lifting of the moratorium, the damage persists. In 2024, for the first time ever, the Alberta Electric System Operator's (AESO) queue of renewable energy projects actually shrank, with more projects being cancelled than proposed.

This stark reversal is out of step with global trends, where clean energy investment continues to surge. Multinational companies, with the flexibility to deploy capital elsewhere, have demonstrably shifted their focus away from Alberta due to the perceived regulatory instability.

As Jorden Dye, director of Business Renewables Centre-Canada, aptly put it, "It's kind of getting to the totality of the decisions that's really driving some of the concerns."

Jobs on the Line: A Disappearing Workforce

The economic fallout extends beyond investment figures to the very real impact on jobs. The renewables industry had been a significant source of employment in Alberta, with projects creating thousands of jobs. For instance, the Tilley Solar project alone was projected to generate 280 full-time jobs and $20 million in labor income. The moratorium put tens of thousands of potential jobs at risk.

While the Alberta government often frames its policies around protecting traditional energy jobs, the reality is that the oil and gas sector has seen a net loss of over 33,000 jobs in the last decade due to automation. The International Energy Agency highlights that clean energy sectors are creating millions of new job opportunities globally, yet Alberta's actions have demonstrably hindered its ability to capitalize on this growing sector. The "ill-advised seven-month renewables 'moratorium' threatens many Albertans' jobs and endangers tens of billions in potential future investment," states Diversify Alberta. 

The Double Standard: Reclamation Costs and Orphan Wells

Perhaps one of the most egregious aspects of Alberta's renewed focus on renewable energy reclamation is the glaring double standard applied to the province's legacy fossil fuel industry. While Premier Danielle Smith stated the province was looking for a "different and better way to approach solar and wind cleanup than what had been done for oil and gas," the new rules for renewables are far more stringent and costly than those historically imposed on oil and gas.

Under the new code of practice for solar and wind projects, operators must provide a 30% security deposit up front for the estimated cost of dismantling turbines and panels, removing underground concrete, hauling waste, and replanting vegetation. This rises to 60% after 15 years to ensure sufficient funds for cleanup. Notably, this calculation excludes the salvage value of materials like metal and concrete, which can offset a significant portion (40% to 80%) of reclamation costs in other jurisdictions. This makes Alberta's reclamation security requirements for renewables the costliest among 27 jurisdictions analyzed by the Business Renewables Centre-Canada. These rules also apply retroactively to existing renewable facilities by 2027, creating a "chilling financial burden" for projects already in operation.

Contrast this with the situation in Alberta's oil and gas sector. For decades, the province has allowed oil, gas, and coal industries to accumulate massive environmental liabilities while contributing mere pennies on the dollar toward cleanup. The Alberta Energy Regulator's (AER) own numbers are stark: there is a staggering $60 billion worth of unfunded cleanup obligations for abandoned oil and gas wells, with only about $300 million secured from industry, less than 1% of the total liabilities. Similarly, oil sands mines face over $57 billion in reclamation obligations, with only a fraction secured through the Mine Financial Security Program.

The government's approach to the fossil fuel industry has been characterized by lax oversight and a reliance on the industry-funded Orphan Well Association (OWA) to manage sites when companies go bankrupt or cannot meet their obligations.

While the OWA plays a vital role, it is fundamentally an industry-funded body addressing a problem created by insufficient upfront security and oversight. The government has allowed a massive backlog of orphan wells to accumulate, effectively shifting the financial and environmental burden onto future taxpayers and communities. This selective application of stringent environmental accountability for new, cleaner industries, while traditional industries are given a pass on billions in unfunded liabilities, exposes the political nature of the moratorium and its subsequent regulations.

Solar Panels in Sync with Farming

The Farmland Fallacy

One of the government’s main talking points was the alleged threat to agricultural land. But the numbers tell a different story. According to AESO and Alberta Agriculture, all existing and proposed renewable projects would occupy less than 0.2% of Alberta’s farmland, a fraction compared to oil and gas infrastructure.

Nationally, studies show placing solar on just 1% of farmland could deliver 25–35% of Canada's electricity, without compromising agriculture.

The narrative that the moratorium was primarily about protecting agricultural land largely ignores the immense potential of agrivoltaics, the co-location of solar energy production and agricultural activities. This innovative approach offers a win-win scenario for both farmers and the energy sector, enhancing land productivity and creating new revenue streams.

What could have balanced farmland protection with renewable growth is agrivoltaics, the practice of combining solar energy with agriculture. Alberta pilot programs have demonstrated success:

• Sun Cycle Farms collaborated with local ranchers to graze cattle under solar panels in southern Alberta; the project confirmed livestock won’t damage equipment, and it retained grazing revenue streams.

• The MacPherson Family Farm near Drumheller has been grazing 200 sheep beneath their 2-megawatt solar installation since 2019, reporting a 15% reduction in vegetation management costs while maintaining optimal solar panel performance. (https://organicagcentre.ca)

• The Turner Valley Solar Cooperative presents another success story, where a community-owned solar installation partners with local shepherds. Their rotational grazing system has eliminated the need for mechanical mowing entirely, saving approximately $4,000 per year in maintenance costs across their 10-hectare site. (https://organicagcentre.ca)

• Native vegetation planted around solar installations provides habitat for pollinators and beneficial insects. Farmers across Alberta report increased bee activity in nearby crops, leading to improved yields in surrounding fields. The protected areas beneath panels also become safe havens for ground-nesting birds and small wildlife. (https://organicagcentre.ca)

• In southern Alberta, several producers have found success with low-growing berries, including saskatoons and haskap, which naturally prefer partial shade conditions. (https://organicagcentre.ca)

• Olds College is launching trials to test livestock (sheep, cattle) and food crops beneath solar arrays—looking at long-term soil, forage, and mechanization benefits (oldscollege.ca).

The Myth of "Farmland First": A Missed Opportunity in Agrivoltaics

In Alberta, where the concept is gaining momentum, studies suggest that converting just 1.4% of the province's farmland to agrivoltaic use could completely offset Alberta's carbon emissions. Agrivoltaics provides several advantages:

• Improved Crop Performance: Partial shading from solar panels can reduce moisture evaporation, protect plants from heat stress, and create a more stable growing environment, leading to increased yields for certain crops (e.g., leafy greens, root vegetables).

• Natural Weed and Grass Control: Livestock, particularly sheep, can graze beneath solar panels, effectively managing vegetation and reducing the need for costly mechanical mowing or herbicides. "Solar shepherds" are even emerging as a lucrative profession, earning significantly more than traditional shepherds due to vegetation management contracts with solar farm owners.

• New Revenue Streams: Farmers can lease portions of their land for solar installations while continuing to farm, providing a reliable second income. This dual-use model significantly increases land-use efficiency.

• Environmental Benefits: Agrivoltaics contributes to carbon footprint reduction and improved soil health and water conservation through reduced evaporation and consistent soil temperatures.

Despite these proven advantages and local successes, the government's "agriculture-first" approach often overlooked these symbiotic possibilities, instead imposing blanket bans on Class 1 and 2 agricultural lands unless specific co-existence is proven.

Grid Reliability: A Red Herring

Another justification was grid reliability. Yet AESO’s own reports show Alberta’s grid, with its abundant natural gas backup, is well-suited to integrate renewables. In fact, renewables have helped lower wholesale power prices and reduce emissions, benefits now delayed or lost.

A Self-Inflicted Wound: Billions in Lost Investment

Before the moratorium, Alberta was a national leader in renewable energy development, boasting over 90% of Canada's wind, solar, and energy storage additions in 2023.

Economic consequences of the moratorium were as harsh as they were swift. According to Pembina and the Canadian Renewable Energy Association, the moratorium immediately put over $33 billion in investment and 24,000 job-years at risk by the freeze. Local communities forfeited around $91 million in tax revenue following the cancellation of 53 projects. Meanwhile, developers, like Greengate’s Travers Solar team, warned that the moratorium inflicted a year-long revenue blackout on projects ready to break ground.

The Alberta Electric System Operator (AESO) confirmed that the moratorium affected more than 100 wind and solar projects with many of those being shovel-ready and backed by international investors. These weren’t just numbers on a spreadsheet: they represented thousands of construction and long-term jobs, community tax revenue, and rural economic diversification.

By the time the pause was lifted in early 2024, several developers had already pulled out. EDF Renewables, for example, cancelled its 300 MW Cypress Wind Project, citing “regulatory uncertainty.” Other global players, including Northland Power and Enel, announced they were redirecting capital to U.S. and European markets, where policy is more predictable.

Investors Bolted

The message was clear: unpredictable policy equals risky business. A PV Buzz summary notes Alberta’s renewables pipeline shrank in 2024 for the first time, driven by unstable political rhetoric and regulatory flip-flops.

In contrast, places like Texas and South Australia enjoyed booming renewables investment thanks to consistent frameworks, while Alberta’s erratic approach drove capital away.

Investor Flight: Alberta’s Reputation Damaged

Alberta had become Canada’s renewable energy darling, attracting more than 75% of the country’s new wind and solar investment between 2019 and 2023 (Globe & Mail, AESO reports). The moratorium, however, sent a chilling message: Alberta is no longer a safe bet for clean energy dollars. “This is the sort of policy whiplash that makes global investors think twice,” said a spokesperson for the Business Renewables Centre Canada.

The result? Not just cancelled projects, but a long-term reputational hit. The Alberta Chamber of Commerce warned in a 2024 statement: “Policy uncertainty is the enemy of investment. The moratorium has set Alberta back years.”

Political Theatre Over Prosperity

Premier Smith framed the moratorium around "agriculture first" and visual preservation. But internal government memos and industry reactions, like Clean Energy Canada’s “uncertainty bomb” warning, suggest a strategic, political narrative that overshadowed Alberta’s economic standing.

A Summary of the Costly Aftermath

• Cancelled projects: 53, totaling 8,600 MW

• Delayed projects: 42, with 15-month average setbacks

• Investment:

  • $91 million in local tax losses

  • $33 billion at risk; 24,000 job-years threatened

• Investor flight: Comparative decline in 2024 project pipeline

The Real Cost: Accountability Needed

The moratorium didn’t save farmland or protect the grid. Instead, it cost Alberta billions in lost investment, thousands of jobs, and a hard-earned reputation as a renewable energy leader. Meanwhile, rural municipalities lost out on millions in tax revenue, and Alberta’s climate commitments took a hit.

Fueling Discussion: Accountability and Economic Loss

The Alberta government's renewable moratorium was a costly misstep, born more of political expediency than sound economic or environmental policy. It sent a chilling message to investors, stifled job creation, and ignored the innovative potential of integrated farming and energy solutions. The stark contrast in reclamation requirements between renewables and the oil and gas sector further highlights a disingenuous approach to environmental stewardship. As other jurisdictions embrace the global shift towards clean energy, Alberta risks being left behind.

The provincial government must be held accountable for the tangible economic losses incurred during and after this moratorium. It is time for a transparent and stable regulatory framework that genuinely welcomes renewable energy and leverages Alberta's natural advantages, rather than engaging in policies that backfire and cost Albertans dearly. The discussion must now shift to how Alberta can regain its momentum in the renewable energy sector and ensure a prosperous, diversified energy future for all its citizens.

The real lesson? Political theatre may win headlines, but it comes at a steep price for Alberta’s economy and for it’s future. As the province tries to woo investors back, the question remains: Who will be held accountable for the damage done?

What Now: Accountability & Solutions

Alberta’s experience underlines why policy stability matters. To regain our footing, the government must:

1. Commit to clear renewables targets, with defined rules and timelines

2. Fully endorse agrivoltaic co-location, letting solar share land with farming

3. Restore investor confidence by avoiding political ultimatums

4. Revisit and refine guidelines using pilot data, such as Olds College results

Farmers & Solar Panels are a Natural Fit

Conclusion: Alberta's moratorium wasn’t an oversight, it was a spectacle.

The result? Jobs lost, capital drained, and our reputation tarnished. But we’ve also discovered a path forward: pairing renewables with farming, nurturing agrivoltaic innovation, and demanding honest accountability from our leaders.

Now the question is: Will Alberta learn from this, or double down on performative politics at the expense of prosperity?