AUC Approval of the Caroline Solar Farm: A Milestone for Renewable Energy Development in Alberta

The Alberta Utilities Commission (AUC) has approved the Caroline Solar Farm project proposed by PACE Bang Energy LP, marking a significant development in Alberta's renewable energy landscape amidst evolving regulatory frameworks. This decision, issued on February 28, 2025, comes after extensive hearings and review of environmental, agricultural, and community impacts of the proposed solar installation.

Project Overview and Approval Details

The Caroline Solar Farm, proposed by PACE Bang Energy LP on behalf of 2518397 Alberta Ltd., received approval from the Alberta Utilities Commission through Decision 28295-D01-2025 issued on February 28, 2025. The approval grants PACE permission to construct and operate a 14.67-megawatt solar power facility on farmland adjacent to the village of Caroline14. The project involves installing approximately 7,000 solar panels on 57 acres of land on the northwest edge of the village1.

The AUC's decision follows an extensive regulatory review process that included a virtual hearing conducted between November 18-22, 2024. During these hearings, both the project proponents and concerned citizen groups presented evidence and underwent cross-examination regarding potential impacts and benefits of the project2. The multi-day hearings, which were livestreamed and subsequently archived, allowed for thorough examination of technical aspects, environmental considerations, and community perspectives related to the solar farm proposa.

The approval represents a significant milestone for the project that has been under development for several years. Initially submitted as a 16-megawatt project, the final approved capacity of 14.67 megawatts suggests some modifications may have been made during the review process to address various concerns raised during consultations114.

The Regulatory Review Process

The Caroline Solar Farm proposal underwent a comprehensive regulatory review before receiving approval. After PACE Bang Energy LP filed its application, the AUC established a formal hearing process to evaluate the project's merits and potential impacts. In August 2024, the Commission set November 18-22, 2024, as the hearing dates, providing stakeholders until October 1, 2024, to submit written evidence1.

The hearings featured extensive testimony from expert witnesses representing both PACE Bang Energy LP and the Caroline Concerned Citizens Group (CCCG), which had formed in opposition to the project. The proceedings included opening statements, witness testimony, and rigorous cross-examination sessions focusing on various aspects of the project2. The CCCG raised specific concerns about the project's potential impacts on wetlands, wildlife, and the local environment, requesting detailed information about wetland mapping and the proposed facility layout1.

Documents indicate that the Commission carefully considered several key factors in making its determination, including:

1. The adequacy of the participant involvement program

2. Potential conflicts with municipal land use authorities

3. Appropriate setbacks from adjacent residences

4. Noise impacts and mitigation measures14

The decision document, labeled Decision 28295-D01-2025, appears to confirm approval of the project through Power Plant Approval 28295-D02-2025, suggesting that PACE adequately addressed regulatory requirements and stakeholder concerns throughout the review process14.

Stakeholder Perspectives and Community Impact

The Caroline Solar Farm project drew both support and opposition from local stakeholders. The village council of Caroline supported the development, viewing it as an economic opportunity that could significantly boost local tax revenues. Previous projections suggested that even a slightly smaller 14-megawatt proposal would generate approximately $150,000 in annual tax revenue, representing a 10 percent increase in the community's total revenues1. This financial benefit was a key factor in garnering municipal support for the project.

In contrast, the Caroline Concerned Citizens Group emerged as an organized opposition to the project. The group focused primarily on environmental concerns, particularly potential impacts on wetlands and wildlife habitats in the project area. Their involvement in the regulatory process included formal information requests and active participation in the November 2024 hearings, where they cross-examined PACE's expert witnesses and presented their own testimony12. The videos from the hearings show extensive questioning about environmental assessments, mitigation measures, and project design details2.

The contrasting perspectives highlight the complex balancing act required in renewable energy development decisions, where economic benefits must be weighed against potential environmental and agricultural impacts. The AUC's approval suggests that, on balance, the Commission determined the project's benefits outweighed potential adverse effects, particularly after any modifications or mitigation measures were incorporated into the final project design.

Regulatory Context and Recent Precedents

The approval of the Caroline Solar Farm comes amid significant evolution in Alberta's regulatory approach to renewable energy projects. In 2023, the provincial government had imposed a six-month moratorium on approving new solar and wind projects greater than one megawatt, which temporarily delayed several renewable energy developments including a similar project planned for Caroline4. This moratorium had expired well before the current decision was rendered.

More recently, on February 19, 2025, just days before the Caroline Solar Farm approval, the AUC rejected a much larger 300-megawatt solar project proposed by Westbridge Renewables' Eastervale Solar Inc. in the Municipal District of Provost3. That rejection cited concerns about agricultural land preservation, environmental impacts on wetlands, and insufficient reclamation security provisions39. The Commission specifically noted that the benefits of the Eastervale project did not outweigh its adverse environmental impacts3.

In December 2024, the AUC also announced regulatory changes affecting solar projects, including a one-year suspension of certain post-construction monitoring requirements for operational solar power plants not located within 1,000 meters of wetland-based Important Bird Areas or named lakes10. Additionally, new information requirements were introduced for applications filed after December 6, 2024, particularly regarding agricultural impact assessments for projects on high-quality agricultural land10.

The approval of the Caroline Solar Farm, especially following the rejection of the much larger Eastervale project, suggests the Commission may be more favorably disposed toward smaller-scale solar developments with stronger municipal support and less significant environmental footprints. The relatively modest size of the Caroline project (14.67 MW compared to Eastervale's 300 MW) and its location adjacent to an existing village rather than in a more rural setting may have contributed to its more favorable outcome.

Environmental Considerations and Mitigation Measures

Environmental impacts were a central consideration in the AUC's review of the Caroline Solar Farm proposal. The Caroline Concerned Citizens Group specifically requested detailed information about the project's potential direct or indirect impacts on wetlands and wildlife1. This focus on environmental concerns aligns with recent AUC decisions, such as the Eastervale rejection, where wetland impacts were cited as a primary reason for denial3.

While the complete details of environmental mitigation measures for the Caroline project are not fully specified in the available information, the AUC's approval suggests that PACE's proposal likely included adequate protective measures or was sited in a way that minimized impacts on sensitive environmental features. The Commission's decision document appears to address several key aspects of the project, including setbacks from residences and noise impacts, indicating a comprehensive review of potential nuisance factors14.

The recent changes to Alberta's regulatory framework, including temporary suspension of certain post-construction monitoring requirements, may have implications for how the Caroline Solar Farm's environmental performance will be assessed after construction10. However, these changes would not have affected the fundamental approval decision itself, as they primarily relate to operational monitoring rather than pre-construction assessment.

Implications for Alberta's Renewable Energy Landscape

The approval of the Caroline Solar Farm represents a notable development in Alberta's evolving approach to renewable energy projects. Coming shortly after the rejection of a much larger solar proposal, this decision may signal the Commission's preference for more modest-scale projects that can demonstrate strong local support and minimal environmental impacts.

For municipalities and project developers, the Caroline case illustrates the importance of balancing economic benefits with environmental considerations and engaging effectively with local stakeholders. The village council's support for the project, based on projected tax revenues and economic development benefits, appears to have been a significant factor in the positive outcome1.

The decision also occurs against a backdrop of changing provincial regulations for renewable energy projects. In December 2024, the AUC announced it would be inviting parties to comment on new information requirements in early 2025 as part of the consultation process for Rule 007, which governs applications for power plants10. These evolving regulations will likely continue to shape how solar and wind projects are evaluated, particularly regarding their impacts on agricultural land and visual aesthetics.

Conclusion

The AUC's approval of the Caroline Solar Farm on February 28, 2025, marks a significant milestone for the project and offers insights into the current regulatory environment for renewable energy development in Alberta. The decision reflects a careful balancing of economic benefits, environmental impacts, and community perspectives, resulting in approval for a relatively modest solar installation that had garnered local municipal support.

As Alberta continues to navigate the complex intersection of renewable energy development, agricultural land preservation, and environmental protection, decisions like the Caroline Solar Farm approval will help establish precedents and expectations for future projects. The contrast between this approval and the recent rejection of the much larger Eastervale project underscores the importance of project scale, siting, and community engagement in determining regulatory outcomes.

For communities considering solar developments and developers planning new projects, the Caroline case demonstrates that smaller-scale projects with demonstrated local benefits and minimal environmental impacts may face a more favorable regulatory path than larger installations with more significant landscape effects. As Alberta's regulatory framework continues to evolve, the successful navigation of these considerations will remain essential for advancing renewable energy development in the province.

Citations:

1. https://www.reddeeradvocate.com/home/auc-hearing-on-caroline-solar-project-set-for-november-7510930
2. https://rumble.com/playlists/dGQCPjbaCPs
3. https://www.lakelandtoday.ca/beyond-local/alberta-utilities-commission-auc-rejects-major-solar-application-in-md-of-provost-10329256
4. https://www.reddeeradvocate.com/news/central-alberta-solar-projects-delayed-by-moratorium-6828587
5. https://farmonaut.com/canada/albertas-solar-project-denied-balancing-renewable-energy-with-agricultural-land-preservation/
6. https://abpolecon.ca/2023/09/03/the-premiers-renewables-moratorium-fails-her-constituents-in-medicine-hat/
7. https://www.youtube.com/watch?v=br8ayZ3UQWQ
8. https://www.auc.ab.ca/featured-applications/
9. https://www.townandcountrytoday.com/beyond-local/alberta-utilities-commission-auc-rejects-major-solar-application-in-md-of-provost-10329256
10. https://gowlingwlg.com/en-ca/insights-resources/articles/2025/regulatory-shifts-alberta-energy
11. https://www.stalbertgazette.com/beyond-local/alberta-utilities-commission-auc-rejects-major-solar-application-in-md-of-provost-10329256
12. https://www.thealbertan.com/beyond-local/alberta-utilities-commission-auc-rejects-major-solar-application-in-md-of-provost-10329256
13. https://rumble.com/v5tsa4e-auc-proceeding-28295-caroline-solar-farm-day-4.html?playlist_id=dGQCPjbaCPs
14. https://prd-api-efiling20.auc.ab.ca/Anonymous/DownloadPublicDocumentAsync/831534
15. https://www.urbangridsolar.com/projects/cc-solar-in-caroline-county-virginia/
16. https://majorprojects.alberta.ca/details/Caroline-Solar-Project/4361
17. https://www.capitalpower.com/operations/maple-leaf-solar/
18. https://www.auc.ab.ca/hearing-and-events-calendar/category/hearing/list/?tribe-bar-date=2025-09-03&eventDisplay=past
19. https://www.ctvnews.ca/edmonton/article/alberta-utilities-commission-blocks-westlock-solar-project/
20. https://www.linkedin.com/posts/alberta-utilities-commission_the-caroline-solar-farm-hearing-proceeding-activity-7264306473579487232-u3I3
21. https://www.auc.ab.ca/featured/caroline-solar-project/
22. https://www.auc.ab.ca/regulatory_documents/decisions/
23. https://www.auc.ab.ca/event/caroline-solar-farm/
24. https://www.auc.ab.ca/hearing-and-events-calendar/list/?tribe-bar-date=2024-11-17
25. https://www.youtube.com/watch?v=7xzTXdD3s1Q