Alberta’s Code of Practice for Solar and Wind Renewable Energy Operations comes into effect

On May 31, 2025, the Code of Practice for Solar and Wind Renewable Energy Operations (Renewables Code of Practice) came into effect in Alberta. Issued under the Conservation and Reclamation Regulation,^[1] the Renewables Code of Practice sets out several regulatory requirements for the construction, operation, and reclamation of solar and wind renewable energy projects in Alberta.

Coinciding with the coming-into-force of the Renewables Code of Practice, the Alberta Utilities Commission (AUC) on June 6, 2025 released Bulletin 2025-06: Reclamation Security Guidelines for Wind and Solar Power Plants (Bulletin 2025-06).  Bulletin 2025-06 sets out the AUC’s expectations for solar and wind renewable energy projects that provide financial security directly to landowners.

The coming-into-force of the Renewables Code of Practice marks another chapter in the development of Alberta’s renewables regulatory landscape following the release of the AUC’s Inquiry Report on January 31, 2024, and Alberta’s Minister of Affordability and Utilities’ direction letter dated February 28, 2024 to the AUC.  A detailed discussion on these changes in Alberta’s renewable energy policy and regulatory landscape are set out in our previous blogs here and here.

Who does the Renewables Code of Practice apply to?

The Renewables Code of Practice applies to all persons carrying on the activity of constructing, operating, or reclaiming a “solar electric renewable energy operation” or a “wind electric renewable energy operation”, as defined in the Activities Designation Regulation.^[2] These are solar or wind energy projects that have a footprint greater than one hectare, or where the amount of electricity generated from such projects is greater than micro-generation.^[3]

The Renewables Code of Practice applies to both future and existing solar and wind renewable energy operations. An “existing renewable energy operation” means all renewable energy operations that have been issued AUC approval prior to January 1, 2025.^[4] 

Registration Requirements

All new wind and solar renewable energy operations must obtain a registration from Alberta Environment under the Environmental Protection and Enhancement Act^[5] prior to commencing any construction, operation, or reclamation activities.^[6]  All existing wind and solar renewable energy operations must obtain a registration prior to January 1, 2027.^[7] 

In addition to the general application requirements for obtaining a registration set out in the Approvals and Registrations Procedure Regulation,^[8] the Renewables Code of Practice sets out additional application requirements for wind and solar electric energy operations, including:

• a conservation and reclamation report that includes a conservation and reclamation plan and a pre-disturbance site assessment, each prepared in accordance with the Conservation and Reclamation Directive for Renewable Energy Operations (2018);
• spatial maps of the project;
• where security will be provided to Alberta Environment, a security estimate prepared by in accordance with Schedule 1 of the Renewables Code of Practice;
• where security will be provided directly to the landowners of the land on which the project is built upon, a statutory declaration setting out that such security has been provided to the landowners and has been deemed adequate by the AUC; and
• any further information that may be requested by the Director in writing.

No transfer, sale, lease or assignment of a registration issued under the Renewables Code of Practice is valid without the prior written consent of the Director.^[9]

Conservation and Reclamation Requirements

The Renewables Code of Practice sets out several soil management requirements for solar and wind renewable energy operations. Before construction, all topsoil and subsoil must be salvaged or conserved in accordance with a project’s approved conservation and reclamation plan.^[10] Only topsoil or subsoil from the site may be used for reclamation of a project, except (i) in accordance with the project’s conservation and reclamation plan, (ii) with the written consent of the registered owners of the lands, and (iii) the material is chemically and physically suited for that purpose.^[11] The registration holder must complete interim monitoring site assessments for a minimum of three growing seasons following the construction of the project.^[12]

Additionally, the reclamation of a renewable energy operation must be in accordance with its conservation and reclamation plan.^[13] The registration holder must submit a reclamation certificate site assessment to the Director following its reclamation, in accordance with the Conservation and Reclamation Directive for Renewable Energy Operations (2018).^[14]

Security Requirements

The Conservation and Reclamation Regulation contains an exemption from the requirement to post financial security to Alberta Environment if the operator of a solar or wind project applies for registration and provides financial security directly to the registered landowner(s) under the terms of its surface lease(s).^[15] Operators that do not fall under this exemption are required to provide security to Alberta Environment in accordance with the Renewables Code of Practice.

If the operator is required to provide security to Alberta Environment, a security estimate must be prepared by an independent qualified individual in accordance with Schedule 1 of the Renewables Code of Practice.  In terms of the amount of security that is required:

• at least 30% of the total estimated reclamation costs for new solar and wind renewable energy operations;^[16] or
• at least 15% of the total estimated reclamation costs for existing solar and wind renewable energy operations,^[17]

must be provided to Alberta Environment prior to the issuance of a registration. On the 15^th anniversary date of the registration, the security amount must be adjusted to at least 60% of the most-recent estimate of total reclamation costs.^[18]

The Director reserves the right to direct a registration holder to prepare a new security estimate at any time.^[19]

Reporting Requirements

Any person conducting an activity at a renewable energy operation must immediately report any contravention of the Renewables Code of Practice to the registration holder and Alberta Environment’s incident reporting line.^[20] Within 7-days of learning of the contravention, the registration holder must provide a self-report to the Director, setting out details of the contravention.^[21]

Additionally, the registration holder must provide post-construction reports in accordance with and at the frequency specified in the Wildlife Directive for Alberta Solar Energy Projects (2017) or Wildlife Directive for Alberta Wind Energy Projects (2018), as applicable.^[22]

The registration holder must also provide a written report no more than five years after the anniversary date of its registration, and every five years thereafter, with any updates to the conservation and reclamation plan and its security estimate.^[23]

Bulletin 2025-06 provides guidance on the AUC’s expectations for landowner-negotiated reclamation security programs that are set out as an alternative to government-held security under the Renewables Code of Practice.  The reclamation security guidelines set out in Bulletin 2025-06 apply to wind and solar power plants that receive AUC approval after January 1, 2025.

Summarized, Bulletin 2025-06 provides the following guidance for wind and solar projects that will provide security directly to landowners:

• the amount of security to be provided initially should be no less than 40% of the total estimated reclamation costs;
• the amount of security to be provided on the 15^th anniversary date of a project’s registration should be no less than 70% of the most-recent estimate of total reclamation costs;
• the AUC’s preferred type of security instrument is an irrevocable standby letter of credit.  Applicants that propose to use a different form of instrument should explain why such instrument is sufficient, and how it provides assurance that sufficient funds will be available in the case of insolvency; and
• applicants should be able to demonstrate that its reclamation security instrument will remain in place until a reclamation certificate is issued, including if the project, or land on which the project is located, is sold or transferred.

As the Alberta electricity market continues to change, our team at McCarthy Tétrault is closely following the legislative, policy and regulatory changes and will continue to provide updates as new developments are announced. For further information, please contact your McCarthy Tétrault trusted advisor or one of the authors.

^[1] Alta Reg 115/1993, s 3.1(1)(c) [Conservation Regulation].

^[2] Alta Reg 276/2003 [Activities Regulation].

^[3] Activities Regulation, s. 3(2)(g) and (i).

^[4] Renewables Code of Practice, s. 1(2)(g).

^[5] RSA 2000, c E-12.

^[6] Renewables Code of Practice, s 2(2).

^[7] Renewables Code of Practice, s 2(3).

^[8] Alta Reg 113/1993.

^[9] Renewables Code of Practice, s 2(7).

^[10] Renewables Code of Practice, s. 4(1) and (2). 

^[11] Renewables Code of Practice, s. 4(6).

^[12] Renewables Code of Practice, s. 4(8).

^[13] Renewables Code of Practice, s. 4(4).

^[14] Renewables Code of Practice, s. 4(9).

^[15] Conservation Regulation, s. 17.1(e).

^[16] Renewables Code of Practice, s. 5(4)(a).

^[17] Renewables Code of Practice, s. 5(4)(b).

^[18] Renewables Code of Practice, s. 5(5).

^[19] Renewables Code of Practice, s. 5(6).

^[20] Renewables Code of Practice, s. 6(1).

^[21] Renewables Code of Practice, s. 6(2) and (3).

^[22] Renewables Code of Practice, s. 6(4).

^[23] Renewables Code of Practice, s. 6(5) and (6).