Alberta Expresses Concern Over Federal Vision for Electrical Grid

A wind turbine is seen in a file photograph. Spencer Platt/Getty Images

The government of Alberta says it is alarmed by reports that the federal government is considering withholding tax credits and programs from provinces that do not commit to a net zero grid by 2035.

On Aug. 8, Ottawa unveiled what it calls a “vision for a clean, affordable and reliable electricity system to power Canada forward.”

The plan includes various incentives for provinces and others to work toward decarbonizing the country’s energy supply.

“This project rivals any nation-building project in Canada’s history,” said a federal news release.

“We can build out a clean grid at a pace and scale needed to fight climate change, create good sustainable jobs and secure our economic prosperity for generations to come,” said Johnathan Wilkinson, federal minister of Natural Resources.

However, Rebecca Schulz, Alberta’s minister of environment, said in a statement that the province does not see it that way.

Her statement said the federal announcement was mostly a reannouncement of new investment tax credits and programs.

“Under normal circumstances, this would be welcome news. Unfortunately, the federal government has a track record of announcing tax credits and programs and then failing to follow through,” her statement said.

She added the $40 billion in funding contained in the federal announcement “is also a pittance compared with the estimated $1.7 trillion in funding that would be required to fully transition the grid by 2035.”

The statement also says it is alarming that the federal government is “considering prohibiting access to these funds, should they ever become available, to provinces that will not commit to their unrealistic 2035 timeline. This would obviously penalize the provinces most in need of assistance in transitioning to a carbon-neutral grid, including Alberta.”

And Nathan Neudorf, the province’s minister of affordability and utilities, said while Alberta is leading the country in renewable energy production, “there are many concerning issues around the rapid pace of development, which is why we have recently paused approvals to review how renewable projects move forward.”

Alberta and Saskatchewan have both announced that they will not try to meet the goal of a net zero grid by 2035. Instead, both have set a goal of 2050.

On May 16, Saskatchewan Premier Scott Moe called the 2035 goal “unrealistic and unaffordable.”

“We will not risk plunging our homes, our schools, our hospitals, our special care homes, our businesses into the cold and darkness because of the ideological whims of others,” Mr. Moe told a news conference.

And Alberta’s premier has said federal intrusion into electrical production is unconstitutional.

“Alberta will not recognize any federally imposed emission-reduction targets for our energy and electricity sectors under any circumstances unless such targets are first consented to by the Government of Alberta. Nor will Alberta recognize any right of the federal government to legislate or regulate in this exclusive area of provincial jurisdiction, or any area of shared constitutional jurisdiction, without the explicit approval of Alberta,” Premier Danielle Smith said in a statement on July 15.

For its part, the federal government says it can work without intruding into provincial jurisdiction.

“While provinces and territories are primarily responsible for electricity generation and delivery infrastructure within their borders, the federal government has a role in establishing environmental regulations and governing interprovincial power lines, regulating nuclear power, making strategic investments to achieve desired outcomes and facilitating collaboration with provincial and territorial counterparts,” said the news release.

The federal announcement and provincial statement appear to be the latest round in a dispute that shows little sign of being resolved.