Alberta's Energy Sector Undergoes Significant Transition Amidst Evolving Policies and Regulatory Shifts Alberta's energy sector is currently undergoing a period of substantial transition, driven by evolving policies, regulatory shifts, and a growing emphasis on competition and decarbonization. The province is actively reshaping its electricity market and land-use planning processes. Recent decisions and initiatives point toward a more complex and regulated environment for energy development. A key development is the Alberta Utilities Commission’s (AUC) determination of cost-of-capital parameters for 2024 and beyond (Decision 27084-D02-2023), which will significantly impact the financial viability of utilities and energy projects. The Alberta Electric System Operator (AESO) has also provided recommendations to the Minister to enhance competition within the electricity market, aiming to improve efficiency and benefit consumers. Significant changes to the *Land Use and Visual Assessment Regulation* are also in effect, resulting in increased scrutiny and potential delays for new power plant developments and other energy projects, with a stricter interpretation of what constitutes a “Power Plant.” The policy environment strongly favors renewable energy sources and emissions reductions, creating opportunities for renewable developers while potentially increasing costs for traditional energy producers. Initiatives to foster competition within the electricity market are also underway, leading to anticipated changes in power generation, transmission, and distribution. Furthermore, Carbon Capture and Storage (CCS) technologies are likely to play a vital role in Alberta’s strategy to meet its emissions reduction targets. Several key projects and developments are being impacted by these changes. New power plant development faces increased regulatory hurdles, requiring detailed land-use planning and visual assessments. Expanding transmission infrastructure remains essential for transporting electricity from generation sources to load centers. Opportunities for investment and development in CCS facilities are also emerging. Those seeking a more in-depth understanding should consult the *Land Use and Visual Assessment Regulation*, the *Alberta Utilities Act*, the *Hydrocarbon Resources Act*, and the *Environmental Protection and Enhancement Act*, along with specific AUC decisions and AESO recommendations. Several Alberta statutes also contain relevant energy-related legislation. Looking ahead, energy projects, particularly those involving new power plants or significant land disturbance, are likely to experience increased regulatory scrutiny and potential delays. Investment is expected to shift towards renewable energy projects and CCS technologies. Market volatility may result from regulatory changes and shifting market dynamics. The evolving landscape also provides opportunities for companies that can innovate and adapt to the demands of a decarbonizing energy sector, with a heightened focus on meaningful consultation with Indigenous communities. For further information: Alberta Utilities Commission (AUC): [https://www.auc.ab.ca/](https://www.auc.ab.ca/) Alberta Electric System Operator (AESO): [https://www.aeso.ca/](https://www.aeso.ca/) Government of Alberta – Energy Website: Search for “Alberta energy” on the official government website. McCarthy Tetrault: [https://www.mccarthy.ca/en/insights/blogs/canadian-energy-perspectives](https://www.mccarthy.ca/en/insights/blogs/canadian-energy-perspectives)

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