Canadian province Alberta's ban on some renewable projects could hurt CA$11.1 billion ($8.24 billion) in investments and stall up to 6.3 gigawatts (GW) of solar and wind power capacity, a study said on March 11.
The new rules can potentially impact 42 projects valued at over CA$11 billion and several thousand jobs, the Pembina Institute, an Alberta-based clean energy think tank, said in the study.
Last month, Canada's main crude oil producing province implemented a ban on renewable power projects that were to come on prime agricultural land and also ordered creating buffer zones so that wind turbines do not spoil scenic views.
The provincial government has, however, said exceptions would be made if developers can show crops or livestock can exist alongside the project.
Canada is the world's fourth largest oil producer, with Alberta contributing 80% of the country's total production. The province is also a leader in renewables and accounts for over three quarters of the country's total output.
The ban has attracted criticisms from some local companies who have claimed the new rules would create business uncertainty and jeopardize billions in investments, threatening to move to other provinces or the U.S.
It has also put premier Danielle Smith's provincial government at loggerheads with Prime Minister Justin Trudeau whose Liberal party is drafting regulations to make provinces eliminate greenhouse gas emissions from their grids on a net basis by 2035.
An email sent to the premier's office requesting comments on the study was not immediately answered.
Out of a total of 111 solar and 34 wind projects proposed in Alberta, 36 solar projects and six wind projects, which are either proposed or awaiting approval, could be affected, the study said.
These projects can potentially double Alberta's current renewable capacity, it said.
Recommended Reading
Ithaca Deal ‘Ticks All the Boxes,’ Eni’s CFO Says
2024-04-26 - Eni’s deal to acquire Ithaca Energy marks a “strategic move to significantly strengthen its presence” on the U.K. Continental Shelf and “ticks all of the boxes” for the Italian energy company.
Apollo to Buy, Take Private U.S. Silica in $1.85B Deal
2024-04-26 - Apollo will purchase U.S. Silica Holdings at a time when service companies are responding to rampant E&P consolidation by conducting their own M&A.
Deep Well Services, CNX Launch JV AutoSep Technologies
2024-04-25 - AutoSep Technologies, a joint venture between Deep Well Services and CNX Resources, will provide automated conventional flowback operations to the oil and gas industry.
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers as the company looks to shed debt for its Equitrans Midstream acquisition.
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.