Achi news desk-
Cardston County in southern Alberta has long relied on agriculture and tourism for revenue but wind power is an emerging economic factor.
Therefore, the news that TransAlta is now canceling a major wind energy project planned for the area is a financial setback for the county.
“The project would have contributed millions upon millions of dollars to the coffers of Cardston County. That’s not on the table anymore so that’s a pretty big hit. That money would have been used for multiple purposes,” said Cardston County Reeve Randy Bullock.
TransAlta CEO John Kousinioris said Friday that the 300-megawatt Riplinger project near Cardston in southern Alberta will no longer proceed.
He said, “(The project) has been affected by the new restrictions on development near protected areas and new views and will not be developed.”
Bullock said the majority of Cardston County Council anticipate this investment.
“TransAlta would have been a willing participant like others, which would have contributed tremendously to the county’s tax coffers,” Bullock said.
He said it was becoming more difficult to find money to finance projects without implementing large tax burdens on area residents.
“The County Council is doing everything possible not to be a tax burden on individuals. We want to stay out of people’s pocketbooks. We are also very reluctant to borrow money to pay for infrastructure improvements across the county. We would like to build water treatment facilities, more regional water lines, along with paved roads and other capital expenditures,” Bullock said.
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The provincial government has played a role in removing some of the ability to be self-reliant, Bullock said. The ability to attract and tax renewable energy projects has been eroded, he adds.
“Projects will have to be postponed until the province comes to the table and provides grant money. We do not want to continue to be a municipality with our leaflet always asking for a grant or financial contributions. We want to be able to do projects on our own,” Bullock said.
“If we’re looking to expand the economy and if we’re looking to move beyond what is essentially a two-city state and we want growth outside for those two cities, this is not helpful,” said Concordia University economics professor Moshe Lander.
Lander said the Alberta government needs to be embracing more energy sources rather than discouraging them.
“When Alberta is talking about electricity overload and we’re talking about blackouts, that kind of thing can become a more regular occurrence when you’re not on board with electricity and energy wherever it comes from. Who cares if it’s wind or solar,” Lander said.
TransAlta also has to delay three other developments, as the government goes through a redesign of the province’s electricity market.
TransAlta’s CEO says they are on hold until the company gets enough clarity.
“Without these rules and clarifications it really hinders investment,” said Pembina Institute senior analyst Jason Wang.
“The Alberta government is restructuring the energy markets. It changes the rules of how companies can earn revenue. That is what TransAlta cited for delaying the development of their other projects which include a battery project and a gas project as well,” said Wang.
Those projects include the 100 MW Tempest wind project, the 180 MW WaterCharger battery storage project and the 44 MW Pinnacle gas development.
The potential investment date has been pushed out until at least 2026.
“There is still tremendous uncertainty in Alberta’s electricity space because of the government announcements and because the sector is still waiting for the government to come up with the final details of all the restrictions they announced. This is still in effect, maintaining a soft moratorium for the renewable energy sector in Alberta,” Wang said.
The province says Alberta continues to attract investment and new projects with over 3,000 MW of wind projects currently under construction.
According to a statement from the Ministry of Affordability and Utilities those renewable energy projects and the addition of Cascade (900 MW), Suncor (850 MW), and Genesee’s conversion from coal to natural gas (1332 MW) are changing the competitive landscape.
“Investors will make decisions based on market need and their opinion on the viability of projects. As TransAlta said, Alberta’s changing energy landscape requires long-term solutions, and our government’s market restructuring and additional policy adjustments are desperately needed to provide stability, reliability and affordability for our electrical needs now and in the future,” said Nathan Neudorf , Assembly Minister. Affordability and Utility in a statement on Sunday.
Bullock said his county hopes to get the attention of the Prime Minister and his MLA and any other ministers who make decisions about the allocation of funds.
“We would expect the government to step up to the plate and fund projects within our municipality in a bigger way. We’ll ask the government to bring your checkbook the next time you visit us here in southwestern Alberta when you’re enjoying our expansive views. We need your financial support “
Bullock said there were people who opposed the wind farm. He said the biggest concern was that he didn’t want to look at windmills.
In recent years the county adopted a renewable tax incentive bylaw, which was aimed at attracting investment to our municipality.
Bullock said they will review that bylaw which is still in effect to make any adjustments that may be needed in the future.
& copy 2024 Global News, a division of Corus Entertainment Inc.
