Evaluating the efficiency of renewable energy policy tools to incentivize deployment of renewable energy in Alberta
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2020-12-11
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This report analyzes the efficiency of renewable energy policy as a tool for Albertan policymakers to accelerate the decarbonization of the province’s electricity sector. Alberta’s electricity system is the most emissions intensive in Canada. Albertans consume only 11% of total electricity generated in Canada but produce 52% of electricity associated emissions. Increasing renewable energy deployment in Alberta could significantly reduce CO2 emissions in the sector and assist in the global fight against climate change. Policy tools have been used in provinces outside Alberta and in international peer countries to drastically increase the deployment of renewable energy. Proponents of renewable energy policy argue that similar outcomes could be achieved in Alberta. Albertan policymakers have implemented some programs to incentivize renewables development in the past, but more action will be needed to achieve deep decarbonization of the electricity system. Four policy tools are commonly used in attempts to increase the deployment of renewable energy technologies: carbon pricing, investments in intertie capacity, loan guarantees, and feed-in tariffs (FITs)1. These policies address the main barriers to renewables deployment, which are intermittency of variable renewable power generation, lack of financing opportunities, and competition with conventional fossil fuels. This paper evaluates case studies in each of the four policy tools from the Canadian provinces and international comparators to evaluate their ability to increase renewables deployment. The policy tools are then evaluated in the Alberta context to consider regional implications in their implementation. If the stated policy options are capable of efficiently incenting renewables deployment abroad, policymakers may wish to consider implementing or expanding those policy options here in Alberta.
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Schumacher, N. (2020). Evaluating the efficiency of renewable energy policy tools to incentivize deployment of renewable energy in Alberta (Unpublished master's project). University of Calgary, Calgary, AB.