Alberta builds robust renewable energy sector
Alberta’s number and size of utility-scale solar and wind projects, both operational and planned for activation within the next few years, exceed renewable energy advocates’ expectations.
Some examples of these endeavors are the Hanna, California, Lone Pine wind project (466 MW), the Brooks, California, Solar Krafte development (360 MW), and the battery storage projects (over 1,000 MW) that are now in the works.
What we observe in Alberta is similarly reflected in other parts of the world. The number of countries using solar energy to generate power is skyrocketing, and the price of solar panels is dropping.
Over the past few years, solar prices have steadily dropped, and they are finally at a level where they can compete with traditional sources of power.
There are now over a hundred renewable energy projects that have been approved or are being supported by the Alberta regulator, the Alberta Electric System Operator.
One benefit of solar energy is that its peak energy output coincides with Alberta’s peak electricity demand in the summer.
So, energy providers in Alberta’s deregulated energy market can charge peak prices for their services without worrying about losing money because they aim carbon pricing at the biggest polluters.
Also, giving power when it’s needed helps keep the cost of electricity down.
Sometimes, new economic sectors need help from the government. However, this is not the case right now in Alberta with renewable energy.
In contrast to the stable or rising cost of power generated by fossil fuels like natural gas, the price of solar energy has plummeted in recent years and shows no signs of stopping.
In the last two years, wind and solar power production contracted by the private sector in the province has brought in $3.75 billion.
To comply with federal laws that aim to reduce greenhouse gas production, Alberta, one of the first governments to collect a carbon tax for large-scale polluters, will increase the cost of its price per tonne of CO2 emissions by 2030.
It will cost $65 per tonne in 2023 and increase by $15 per year until it reaches $170.
This could be a double-edged sword because it will let low-carbon energy projects make money from the energy they produce.
The value of being a low-carbon electricity resource increases as the carbon price rises. Canadian policy, which calls for a net-zero electricity grid by 2035, may reduce the relative importance of the advantages of solar, wind, and other generation sources.
Because it is hard to build a completely carbon-free energy infrastructure, getting to net zero by 2035 will require continuing to use fossil fuels like natural gas to make electricity.
And when people think about how hard it is to deal with fluctuating renewables and the need to fill in the gaps with other sources, the current state of technology makes those problems manageable up to about 75–80 percent.
The province is on track to meet or beat its legal goal of having 30% of its electricity come from robust, renewable sources by 2030.
It is projected that, by 2023, the provincial government will have achieved its goal of 26 percent by 2028.