Alberta has introduced new requirements for wind and solar energy developers under the Code of Practice for Solar and Wind Renewable Energy Operations, which came into effect on May 31, 2025. The changes require all wind and solar facilities to register with Alberta Environment and Protected Areas (AEPA) and to provide financial security for future reclamation of project sites.

Developers now have two options to meet these obligations: either post a financial deposit with AEPA or secure a landowner agreement approved by the Alberta Utilities Commission (AUC). New projects must secure a minimum of 30 per cent of estimated reclamation costs upfront if choosing to deposit funds with AEPA. For existing projects approved before Jan. 1, 2025, that requirement drops to 15 per cent. In either case, by the 15-year mark after registration, operators must increase their financial security to at least 60 per cent of the projected

costs, unless a reclamation certificate has already been issued.

For developers opting to secure landowner agreements in lieu of AEPA deposits, the AUC now requires a minimum of 40 per cent of estimated costs to be secured initially, increasing to 70 per cent after 15 years. The preferred form of financial backing is an irrevocable standby letter of credit. Other forms may be accepted but must provide sufficient guarantees, especially in cases where the opera-

tor becomes insolvent.

Projects already operating under landowner agreements must re-register with AEPA by Jan. 1, 2027, and demonstrate that their current security still meets regulatory standards. If not, they may be required to top up their financial commitments.

In addition to the financial security measures, developers must submit soil conservation plans, pre-disturbance assessments, and regular compliance reports. These must be prepared and verified by qualified professionals, ensuring alignment with the new regulatory standards.

According to a recent report by the Business Renewables Centre of Canada, Alberta’s updated reclamation rules are among the most stringent in North America. The group noted that the high upfront security requirements, combined with a lack of credit for salvageable infrastructure, could raise costs for developers and potentially affect the province’s competitiveness in the renewables sector.

The changes mean operators and landowners will need to re-evaluate their lease or surface use agreements, decide how to meet the financial security rules, and prepare for more intensive monitoring and reporting over the life of the project.

This is a summary of a publicly available legal article and does not constitute legal advice.

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