Alberta’s renewable energy industry still recovering from 2023 decline, experts say

Alberta’s renewable energy industry still recovering from 2023 decline, experts say

3 years after pausing new renewable energy projects, province says industry still strong

New pipeline and data centre projects are making headway in Alberta but the renewable energy industry in the province is still facing headwinds, experts say.

New corporate renewable energy deals declined a staggering 99 per cent from 2023 to 2025, according to a report published earlier this year by the Business Renewables Centre Canada, an initiative that both connects corporate buyers to clean energy developers and tracks corporate renewable energy projects across the country.

The 2025 Renewables in Review report says that Alberta's once-thriving renewable energy landscape, propelled by the province’s open electricity market, saw a catastrophic decline in investment since a seven-month moratorium on clean energy projects in 2023.

“It’s sort of death by a thousand cuts,” said David Vonesch, CEO of solar energy company SkyFire Energy.

“It's not just one thing, it's a multitude of different policy regulatory changes that are taking place all at the same time that are creating significant headwinds and uncertainty in the market for investors right now.”

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The 2023 moratorium in Alberta paused all corporate investment into renewable energy projects for seven months.

Following this, a series of policy changes placed restrictions on where projects could be built while also introducing new regulations for projects to comply with before obtaining provincial approval.

This included a prohibition on wind and solar developments within a 70,000-square-kilometre buffer zone surrounding the Rocky Mountains, rules requiring payment for new transmission lines and a new requirement for projects to obtain visual impact assessments to determine what effect developments would have on the surrounding area.

The province also introduced a mandatory reclamation policy that compelled wind and solar projects to provide a security deposit of 30 per cent of their total estimated cost upfront.

Industry watchers raise alarm on Alberta renewable-energy project cancellations

A combination of the provincial pause and the induction of new regulations left investors unclear as to how their developments would be impacted, said Jorden Dye, director of Business Renewables Centre Canada.

“There's been a number of regulatory decisions that have been made that have definitely added burden to the industry,” said Dye. “Including some of the decisions around reclamation.”

Dye said that while a market with changing regulations can definitely impact investor confidence, the more pressing deterrent is expecting investors to operate in a province where policy changes seem increasingly volatile.

“It’s actually just policy uncertainty,” said Dye. “The government has spent three years now reworking the energy market. They have switched their direction a number of times.… No large corporation is going to sign a 15-year deal when the rules that will govern that deal aren’t known.”

Alberta policies have dampened investor confidence in renewables: report

Vonesch said he feels as though the provincial government doesn't want to support the renewable energy sector.

“We need a government that is actively working to support this industry rather than working against these projects,” said Vonesch. “It's very clear at this point that they've actively worked to stall and/or to destroy this industry. I think that's undisputed just with the number of things that have taken place.”

Alberta renewable energy pause left legacy of cancelled development: study

But the provincial government insists investment in renewables continues to be strong.

In a statement to CBC News, a spokesperson for the Office of the Minister of Affordability and Utilities said, “the idea that renewable investment in Alberta has stalled is a misleading characterization of the sector in Alberta. In recent years, Alberta has led Canada in new renewable energy development, representing more than 85 per cent of Canada’s growth.”

The statement says that the government has “set a clear, responsible path forward for renewables, and we support a strong investment climate.”

“We’re also protecting ratepayers through a cost-causation approach, ensuring that Albertans will not be burdened with the cost of unnecessary new transmission lines on their power bills.”

Despite concerns over the future of renewables in Alberta, Dye said the issue lies in confidence, not willingness.

“We're not looking at a world where development stops,” said Dye. “What we're really looking at is, do these decisions set up an industry that's going to grow and thrive? Or do these decisions set up an industry that will eke out the projects in the very specific spots where they make sense under the new regime?”

The report includes a preamble from Dye that highlights the province’s importance to the renewables sector in 2026, despite recent challenges.

“Alberta will remain a critical market for corporate renewables regardless of policy outcomes, but the pace and scale of growth, and the speed at which we decarbonize our energy system, will be determined by the outcome of these reforms,” states the report.

According to the government, there was 2,848 MWh of renewable energy generated in Alberta in June, which is about 21.7 per cent higher than June 2025.

In an interview, Dye said working with investors to rebuild trust in Alberta’s renewable energy market is the best way forward.

“It's a critical moment… If we can restore that confidence and convince the market and investors that the new system isn't prohibitive to renewables, I think that would set us up in a good position.

"It really comes down to, can we get certainty around those market rules that will allow us to help companies sign deals?”

Raquel Medina is a journalist based in Edmonton, Alta. She is a 2026 CBC News Summer Scholar and previously worked with CBC's Investigative Unit in Toronto.