THE PRESS IS ECONOMIC INFRASTRUCTURE, SCAFFOLDING FOR DEMOCRACY. WITHOUT IT, POWER GOES UNCHECKED.

Alberta’s energy deal with Ottawa promised “massive new investments in renewable energy” and “clean technologies," powered by market changes to “better enable investment for renewables.”

Clean energy advocates are skeptical last month's agreement will ease barriers to renewable investment as Alberta doubles down on natural gas and aims to export bitumen to Asia via a new pipeline to the BC coast.

The implementation plan for the memorandum of understanding (MOU) signed last November commits the parties “to facilitate a growing role for lower-carbon forms of energy development, such as wind, solar, geothermal and nuclear,” and establishes a working group to chart a path to net-zero by mid-century.

The plan announced on May 15 also commits Alberta to “implement changes to the Restructured Energy Market to facilitate ongoing investment in renewables.” Essentially the rulebook all energy players must follow, the revised REM is a major uncertainty for renewables developers because it is not expected to fully launch until 2028.

Critics say the language in the implementation plan is vague and the province's broader policy environment continues to undermine the renewables sector.

"No other sector in Alberta has been treated in this unfair way," said Nagwan Al-Guneid, energy critic for Alberta’s opposition NDP. Photo by Subbu Srinivasan for Canada's National Observer.

"The MOU creates an opportunity for renewables, but that opportunity depends entirely on provincial policy,” Nagwan Al-Guneid, energy critic for Alberta’s opposition NDP, told Canada’s National Observer.

In a statement, Ashli Barrett, press secretary for Alberta's minister of affordability and utilities, said the province remains committed to working with Ottawa through the Electricity Working Group to identify priority projects, technologies and investment needs.

"In Alberta's unique, competitive market, industry drives investment, and we support a strong investment climate," she said in the statement which made no mention of clean energy specifically.

A new study released on Thursday concluded Ottawa's energy deal with Alberta will do little to reduce Canada's emissions.

The analysis by the Canadian Climate Institute said the "minimal" benefits from the MOU are not enough to offset the prospect of increased oil production. That is mainly because of inefficiencies in the changes to Alberta's industrial carbon pricing system.

Renewables moratorium

Alberta, home to some of the best wind and solar resources in North America, was a Canadian leader in renewables development a decade ago.

Wind turbines near Pincher Creek, Alberta. Photo by Subbu Srinivasan for Canada's National Observer.

Premier Danielle Smith’s United Conservative government put the brakes on the sector, beginning with a seven-month moratorium on renewables in 2023.

More restrictive policies have followed, fuelling investor uncertainty that resulted in a 99 per cent plunge in corporate renewable energy deals since 2023, the Pembina Institute’s Business Renewables Centre-Canada (BRC) said in its 2025 review.

“There is a compounded effect that is chilling investment in Alberta’s renewables, and this explains why we haven’t seen much development since the moratorium,” Al-Guneid said.

Despite multiple mentions of renewables and clean energy in the plan, industry experts said the agreement is vague and pays mostly lip service to a sector that has flatlined under the current government.

The Pembina Institute flagged its concern over the consistent pairing of “natural gas generation” with the need to ensure electricity grid stability in Alberta.

"Natural gas is just one of many options to ensure the reliability and stability of an electricity grid," said David Pickup, Director of the Pembina Institute’s Electricity program.

He pointed to Denmark, the state of South Australia, Texas and California as examples of jurisdictions that embrace renewables in a diversified energy mix that includes gas and hydro as well as transmission interties, batteries and energy conservation measures.

The commitment to changes in the REM that would enable renewables investment is also vague and sets no targets or a specified review schedule to measure success, Pickup said. “It's very likely that Alberta will not need to actually do anything to meet this commitment,” he said.

Pembina also warned the deal could weaken Alberta's carbon pricing system, a key revenue source for wind and solar projects.

Ottawa didn't enforce the federal standard on Alberta's industrial carbon price as a gesture of co-operation with the province, Federal Environment Minister Julie Dabrusin said last month.

‘Death by a thousand cuts’

One bright spot, Pickup said, was a commitment to extend the Clean Electricity Investment Tax Credit to transmission lines both within and between provinces.

Solar panels and wind turbines near Champion, Alberta. Photo by Subbu Srinivasan for Canada's National Observer.

The lack of transmission infrastructure in southern Alberta is causing wasted renewable energy and decreasing revenue for renewables developers, he said.

The renewables chill persists despite apparent public appetite for cleaner energy.

A poll conducted by the Business Renewables Centre released May 28 found that 66 per cent of Albertans want more wind and solar projects developed near their communities and believe the province should do more to encourage emissions-free energy.

Still, the cumulative effect of Alberta policies — from the 2023 moratorium and buffer zones to protect “pristine viewscapes,” to a solar recycling fee and a 30 per cent upfront security requirement for cleanup “that no other sector has” — amounts to what Al-Guneid called "death by a thousand cuts" for renewables.

"No other sector in Alberta has been treated in this unfair way," Al-Guneid said, adding she looked forward to seeing how the MoU addresses the “regressive policies against renewables.”