Wednesday 10 August 2022

The Canadian province of Alberta, home of the country’s oil and gas sector for decades, is set to undergo a renewables capacity surge in the coming years, attracting investments given its vast natural resources and favorable regulatory landscape.

The country’s total renewables capacity is expected to grow from 19.6 gigawatts (GW) in 2021 to almost 45 GW in 2025, driven primarily by growth in onshore wind and solar energy projects. This is not surprising for a country whose power mix is predominantly hydropower-based, but the region leading the charge is surprising.

The bulk of these additions is set to take place in the western province of Alberta – known as the home of the Canadian fossil fuel industry – which today only holds about 3 GW of renewable capacity. Significant large-scale projects in the region are scheduled to come online this year that will push Alberta’s capacity to close to 10 GW before 2023. That total will double again by 2025, reaching almost 21 GW, nearly half of the country’s total.

This rapid growth will see Alberta race ahead of Canada’s other provinces and take the top spot in the country’s green table, outpacing Ontario – the current leader – with almost double the power generation capacity.

“Canada is no stranger to renewables, but Alberta has been a minor player until now. That’s about to change. The region’s unregulated power market, minimal regulatory hurdles and abundant natural resources make it an attractive prospect for developers, in addition to an existing workforce of industry professionals increasingly eager to adapt to green energy. Other provinces may want to follow suit if they have ambitions to attract lucrative green investments,” says Geoff Hebertson, renewables analyst with Rystad Energy.

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