Net-zero power grid for Alberta by 2035 is possible, says Wilkinson

Against the backdrop of Alberta’s latest solar park, federal Natural Resources Minister Jonathan Wilkinson said on Tuesday he still believes the province can get its power grid to zero by 2035 — despite Prime Minister Danielle Smith’s insistence to the contrary.

Wilkinson made the comments in Starland County near Drumheller, Alta., in front of the thousands of gleaming solar panels that are part of the latest solar project to connect to the county’s power grid.

“The federal government believes it is possible,” said Wilkinson, shortly after renewable energy company Capstone Infrastructure formally cut the ribbon on its 25 MW Michichi solar project, which will produce enough renewable energy to offset about 30,000 tons of CO2 each. year.

“But we also need to be prepared to listen to the concerns of Alberta and Saskatchewan and try to find ways to address those concerns — and ideally within the 2035 time frame.”

As part of its sweeping climate goals, the federal government plans to soon release a draft of its promised clean electricity regulations, which aim to ensure that Canada’s power grid is a net-zero greenhouse gas emitter by 2035.

Canada’s current power grid is more than 80 percent non-emitting, and in provinces with vast amounts of hydroelectric generating capacity, decarbonisation is achievable within the next decade.

But while Alberta has committed to achieving net-zero greenhouse gas emissions by 2050, the province’s lack of hydroelectricity and heavy reliance on natural gas for power generation means the power grid faces greater transition challenges than many other jurisdictions. .

Saskatchewan, too, has said the 2035 time frame is unfeasible and has said it will instead aim for a net-zero power grid by 2050.

On Monday, Smith reiterated her administration’s belief that any federal electricity regulation that is “too aggressive” would infringe on the county’s constitutional authority over its natural resources.

“We’re just not going to do anything that will hurt our economy or do anything that indicates that our oil and gas sector will be wound down,” the prime minister said at a Stampede breakfast in Calgary.

However, Wilkinson said on Tuesday that by agreeing to Alberta’s proposal to form a bilateral working group, Ottawa is showing its willingness to listen to the province’s concerns.

The task force, which Wilkinson says will be made up of “seniors on both sides,” will seek some kind of federal-provincial alignment on emissions reductions — including the issue of greening the power grid.

Wilkinson pointed out that Alberta was largely dependent on coal for electricity not so long ago. He said it is a huge achievement that the province will now be completely without coal next year.

The province is also in the middle of developing wind and solar energy. Alberta is now home to more than 3,800 megawatts of wind and solar energy, and last year forecaster Rystad Energy predicted that the province would lead the country in total installed utility-scale wind and solar energy by the middle of the decade.

Yet, at present, more than 70 percent of the province’s total electricity generation capacity is non-renewable. Wilkinson said his administration understands that wind and sun will only take Alberta so far.

“For Saskatchewan and Alberta, I would say carbon-captured natural gas will continue to be part of the conversation,” he said.

“And small modular reactors and nuclear power, knowing that it will take some time, will also be part of the reality.”

Wilkinson said the task force’s goal will be to determine what technical and financial barriers exist to achieving net-zero for Alberta, and how the federal government can help.

While he said Ottawa has already made significant financial commitments, it may be willing to do even more to help counties cross the finish line.

“I would say the federal government should be open to that conversation,” he said, adding that the most recent federal budget included funding for a tax credit for power generation and inter-county transportation investments.

“The reason we did that is we saw the magnitude of the challenge, and our view was that it was beyond the fiscal capacity of any of the counties in terms of what will be required over the next few decades,” Wilkinson said. .

“So we have put money on the table for those provinces that are willing to enter into that conversation. We may have to do more.”

In an interview on the solar site Tuesday, Capstone Infrastructure CEO David Eva said he also believes net-zero electricity is possible for Alberta by 2035.

He said that in the space of a few years, the cost of solar technology has fallen so much that it is now cheaper than fossil fuel generation, and many of Alberta’s traditional oil and gas companies are signing off-take agreements with renewable energy companies for their own electricity needs.

“I believe it (net-zero) is possible,” Eva said.

“It’s challenging, but at the pace we’re going, as long as we invest in the power grid to connect these projects, and we continue to see support from all levels of government… I’m very confident we’ll get there. “