North American Green Energy Landscape
Carbon Commitment Underpins Investment in Sector
Governments are imposing Carbon Taxes making a demand for offset credits.
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Governments are committed to a reduction in Greenhouse Gases (“GHG”) e.g. Paris Accord.
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As an incentive to reduce GHGs, governments are imposing taxes on GHG emissions. Current carbon tax is $80/tonne of carbon increasing to $170 by 2030.
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Carbon trading markets are evolving as a result of large emitters looking to offset their taxes using carbon credits.
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The generation of electricity through solar creates a carbon credit. This provides large emitters globally with the ability to offset their carbon taxes by acquiring carbon tax offset credits from generators of green energy such as Nu E while contributing to a Greener and Cleaner environment.
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Government clean energy targets combined with incentives and tax credits ensure the growth of clean energy is inevitable.
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Alberta Regulatory Environment
On February 29, 2024, the Alberta Government confirmed the expiration of the pause on new renewables approvals and provided initial guidance on the topics addressed by the inquiry. While we await more specific guidance from the AUC in the coming months, we are closely monitoring the development of new rules and regulations that will impact the permitting process for renewable energy projects in the province.
The changes announced by the government encompass several key areas:
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Land Restrictions: The government has indicated that there will be restrictions on the use of certain types of agricultural land for renewable energy projects. However, based on our current assessment, we do not anticipate these restrictions to have a material impact on our projects currently under development.
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Reclamation and Security Funding: The government has signaled that there will be additional requirements related to reclamation security and bonding obligations for renewable energy projects. The exact nature and extent of these requirements are yet to be determined, and we are actively monitoring the situation to ensure compliance with any new regulations.
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Transmission Regulation Changes: The government has announced changes to the Transmission Regulation that will affect the allocation of transmission costs. These changes are expected to result in additional material expenses for our projects. We are working closely with industry stakeholders and regulatory bodies to understand the exact allocation amounts and mechanisms that will be put in place.
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Renewables on Crown Lands: The government has indicated that the development of renewable energy projects on Crown lands will now be permitted, subject to appropriate approvals. A formal process for obtaining such approvals is expected to be in place by the end of 2025. We are evaluating the potential opportunities that this change presents for our future project pipeline.
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New Setback Rules: The Alberta Utilities Commission will hold hearings to develop new rules regarding setbacks from residences and infrastructure, as well as requirements for site visits. It is anticipated that these rules will be mandatory for all renewable energy projects in the province. We are prepared to engage in these hearings and adapt our project designs and development processes to ensure compliance with any new setback requirements
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Prohibited Zones: The government has designated 35km prohibited zones around "pristine viewscapes." Wind energy developments will be prohibited within these zones, and solar projects may be subject to visual impact assessments. We are carefully studying the implications of these prohibited zones on our project portfolio and will adjust our development strategies accordingly.
