An increase in renewable energy in Alberta might support 4,500 employments

Although the decline of Alberta’s coal-fired power facilities has been well-documented recently, it’s happening far faster than some had anticipated. It’s anticipated that the Alberta government will end coal-powered electricity seven years before the deadline of 2030.

Since 2019, Alberta has witnessed a sharp rise in commercial investment in renewable energy, and as a result of these agreements, capacity is expected to raise output by two gigawatts, or enough to power about 1.5 million homes. According to Nagwan Al-Guneid, the Business Renewables Centre Canada director, “our estimate shows $3.7 billion value of renewables development by 2023 and 4,500 jobs.”

The Pembina Institute, an environmental think tank, launched the center, which offers information and direction to Canadian businesses wishing to invest in energy offsets or renewable energy. Companies that use renewable energy make up their membership.

As per the Canadian Energy Regulator, the two gigawatts of additional power are more than twice as much as the renewable energy amount that was added to the system between 2010 and 2017.

According to Al-Guneid, “This is directly influenced by what we refer to as power purchase agreements.” “Companies are coming to Alberta from all around the country.” As per the Business Renewables Centre, purchase contracts have already brought 191 megawatts ()MW of renewable energy to the grid this year.

The energy system in Alberta is distinct from others in Canada since it is an open market where businesses can negotiate directly with private power providers to purchase a predetermined quantity of electricity generated each year, either for usage or for offset credits. These contracts’ financial certainty enables producers to develop more renewable plants without market uncertainties. To achieve internal or external emissions goals, buyers receive affordable renewable energy or credits.

It varies from the other provinces where the provision of power is controlled by a single entity, frequently the government. According to Blake Shaffer, an economist at the University of Calgary who specializes in energy markets, investment in renewables in those jurisdictions mostly hinges on whether the monopoly business is in the market to buy.

That’s not the situation in Alberta, where the sole meaningful regulatory barrier is applying to link a facility to the grid. “Once that’s accepted, you can simply go ahead and create it, and you then sell it,” Shaffer explains.

Due to its adaptability, Greengate Power, a Calgary-based company, has secured two contracts with Amazon for the purchase of 455 megawatts of solar energy in 2021. Oil firms have made significant investments as well in an effort to reduce emissions. With the assistance of the private sector, the investments are enabling Alberta to decarbonize its grid.

According to Shaffer, Alberta is Canada’s “capital for renewable energy.” People are shocked by it, Shaffer adds because oil and gas are the only things they associate with Alberta, not renewable energy. But currently, it serves as the nation’s primary investment hub for renewable energy.

Posted on

Leave a Reply

Your email address will not be published. Required fields are marked *