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Municipalities in Alberta saw a sharp increase in tax revenues from renewable energy projects last year.

Driven by 20 new projects, annual tax revenues have increased from $28 million last year to $54 million in 2024, an increase of 92 percent, according to the Business Renewables Centre-Canada’s latest annual report on municipal tax revenues from wind and solar projects.

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Fourteen municipalities in Alberta currently have revenues of over one million dollars per year. Topping the list are rural municipalities in southern Alberta, namely the County of Forty Mile ($9 million), Vulcan County ($7 million) and the Municipal District of Pincher Creek ($4.8 million).

For the County of Forty Mile, the millions in tax dollars from wind power projects have stabilized municipal tax revenues after tax revenues from oil and gas plummeted, said Governor Stacey Barrows. Tax dollars from renewable energy make up about half of total revenues.

“It helped us catch up,” she said.

However, the Business Renewables Centre-Canada warns that if the province does not further address the uncertainty created by its moratorium on renewable energy approvals, a decline in new projects will impact the financial future of rural communities.

The center’s recently released annual report comes out a little early this year, just on the one-year anniversary of the moratorium on permitting renewable energy projects larger than one megawatt, which ended on Feb. 29. In late February, the province introduced new restrictions on future wind and solar projects, taking an “agriculture first” stance when companies apply for permits for new projects and preventing wind farms from being built within 35 kilometers of nature reserves and other “pristine vantage points.”

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The industry association is concerned about the speed at which renewable energy projects are currently being cancelled. Since the moratorium was announced, 53 projects have been put on hold, it says.

However, in a statement to Postmedia, the province points out that since the permit freeze was lifted on February 29 through July 22, the Alberta Utilities Commission (AUC) has approved 18 new renewable energy generation projects this year, compared to 12 approvals in all of 2023 and 19 approvals in 2022.

Renewable energy industry demands clarity from Alberta government

Jorden Dye, program director at the Business Renewables Centre-Canada, said while the industry is not expecting the province to find answers to regulatory reform overnight, the Alberta government could clarify some questions to give the industry insight into the direction the province is heading.

One of those issues the industry is seeking clarity on is a proposed change to day-ahead pricing in the wholesale market, instead of the current day-ahead pricing for Alberta’s electricity. Because solar and wind levels fluctuate daily, a day-ahead market would make it difficult for renewable energy companies to bid consistently, Dye said.

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“The way this is handled will be critical to how profitable renewable energy can be and how profitable it can be in the province,” he said.

Following ongoing discussions between the Alberta Electric System Operator and the renewable energy industry regardingAs part of the restructuring of Alberta’s energy market, the province intends to introduce legislative changes to the new market design, which are to be “fully implemented” by 2027.

The Market Surveillance Administrator’s latest report on grid alerts supports the Alberta government’s decision to move to a day-ahead market, which the province said will help “better prepare for and respond to power outages during periods of high demand in the province,” according to an Aug. 6 news release.

Responding to the Business Renewables Centre-Canada report, Nathan Neudorf, minister of affordability and utilities, said in a statement Friday that the province is focused on tackling rising transmission costs as well as “protecting Alberta’s most beautiful landscapes and the world’s finest agricultural industry.”

“BRC Canada’s report shows that the province’s renewable energy industry is vibrant and thriving. Municipal tax revenues from wind and solar projects have nearly doubled,” said Neudorf. “We will not sacrifice the affordability and reliability of Alberta’s electricity grid to increase municipal tax revenues.”

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