Solar and Wind Farms in Special Areas, Alberta

Alberta's Special Areas have emerged as significant hubs for renewable energy development, hosting numerous large-scale wind and solar projects that are transforming the province's energy landscape. These administrative regions, including Special Area No. 2, No. 3, and Special Areas 4, have attracted billions in investment for renewable energy infrastructure. With Alberta leading Canada in renewable energy growth—accounting for 92% of the country's renewable electricity generation increase in 2023—these Special Areas are at the forefront of the province's energy transition. Despite recent regulatory changes creating "no-go zones" for certain developments, the region continues to see substantial project announcements and construction, leveraging its exceptional wind and solar resources while providing significant economic benefits to local communities.

Renewable Energy Landscape in Special Areas

Geographic and Administrative Context

The Special Areas in Alberta represent unique administrative regions that have become focal points for renewable energy development. These regions span across central and southern Alberta and feature characteristics particularly favorable for renewable energy generation, including abundant wind resources and high solar potential.

Special Area No. 3 has positioned itself as a "wind energy investment destination" with major projects like the Sharp Hills Wind Farm ($420M) and Lanfine North Wind Power ($350M)5. The region benefits from strategic infrastructure advantages, with Highway 9 offering high-load corridor access that facilitates the transportation of large turbine components and other equipment5. This critical connectivity enhances the area's attractiveness for wind energy developers seeking efficient logistics solutions.

Similarly, Special Area No. 2 hosts numerous solar and wind projects, taking advantage of Alberta's exceptional solar resources, which are among the highest in Canada. The flat terrain and existing electrical infrastructure in these regions provide ideal conditions for large-scale renewable energy development, minimizing the need for extensive site preparation while maximizing generation potential.

Special Areas 4 has also emerged as a significant renewable energy zone, with major projects like the Sharp Hill Wind farm demonstrating the region's suitability for large-scale generation facilities18. Together, these Special Areas represent some of Alberta's most promising territories for continued renewable energy expansion.

Alberta's Renewable Energy Policy Framework

Alberta's approach to renewable energy has evolved significantly in recent years, with the province emerging as Canada's leader in attracting renewable energy projects. According to reports, 98% of growth in wind and solar in 2023 occurred in Western Canada, with Alberta contributing the vast majority4. The province has successfully met its coal phase-out target ahead of schedule, marking an important shift in its energy landscape8.

However, recent regulatory changes have introduced new constraints on renewable energy development. In late 2024, the Alberta government confirmed new rules for wind and solar energy projects, including prohibition zones and visual impact assessment requirements1 23. These regulations stem from Premier Danielle Smith's "agriculture first" approach and aim to protect agricultural land, environment, and scenic landscapes.

Among these regulations is a prohibition on wind projects within a 70,000-square-kilometre "buffer zone" around the Rocky Mountains, extending to the western half of Calgary13. Additionally, renewable energy projects won't be allowed on top-grade agricultural land unless developers can prove coexistence with livestock and crops. Projects in areas such as Cypress Hills provincial park and parts of southern Alberta will require visual impact assessments before approval13.

Despite these regulatory challenges, the Special Areas continue to see significant renewable energy development. As of 2022, 18% of Alberta's electricity was generated from renewable resources8, with the Special Areas contributing substantially to this figure through their growing portfolio of wind and solar projects.

Major Wind Farm Developments

Operational Wind Projects

Several major wind farms are currently operational across the Special Areas, representing billions in investment and hundreds of megawatts in clean energy capacity. One of the most significant is the Sharp Hill Wind (SHH1) project in Special Areas 4, with 297 MW capacity developed by EDP Renewables18. This project ranks as the seventh-largest wind farm in Canada, highlighting the scale of renewable energy development in the region.

The Hand Hills Wind Facility, located on privately owned land in both Starland County and Special Areas 2, approximately 28 km northeast of Drumheller, is another notable operational project. With 29 turbines and a capacity of 145 MW, this facility began operating in 2023 under a Power Purchase Agreement with Shell Energy16. The project's development began as early as 2007, demonstrating the long-term planning and investment that has gone into renewable energy in the Special Areas.

Lanfine Wind in Special Area No. 3, developed by Pattern Energy, represents a total investment of approximately $335 million in Alberta14. Beyond its energy production capacity, this project has established a Community Fund that will contribute over $1,000,000 to the Community Foundation of Southeastern Alberta over 18 years of operation. The project created 150 to 200 construction jobs and maintains 7 to 10 full-time local positions, demonstrating the economic benefits these developments bring to the region14.

Wind Projects Under Development

The Oyen Wind Power project, proposed by RES Oyen Wind LP in Special Area No. 3, is set to become one of the largest in the province with up to 466 MW of capacity19. The proposed layout includes 84 potential turbine locations, though the developers anticipate constructing a maximum of 83 turbines. With individual turbines ranging from 5.7 MW to 6.6 MW capacity, this project represents the evolving scale and efficiency of wind energy technology in the region.

TransAlta's Garden Plain Wind Project in Paintearth County and Special Area No. 2 is another significant development. This 130 MW project is located on approximately 14,000 acres of privately-owned land10. After receiving approval from the Alberta Utilities Commission in 2019, TransAlta entered into a long-term Power Purchase Agreement with Pembina Pipeline Corporation for the offtake of 100 MW for an 18-year term in 202110.

The Hand Hills Hybrid project, spanning Starland County and Special Areas No. 2, represents an emerging trend in renewable energy developments by combining 180 MW of wind power with 120 MW of solar capacity6. This integrated approach maximizes land use efficiency and provides more consistent energy production across varying weather conditions. The project is expected to generate enough power annually to power 115,000 homes and offset 360,000 tonnes of carbon dioxide emissions6.

Solar Energy Expansion

Major Solar Projects

The Special Areas have seen remarkable growth in solar energy development, with several large-scale projects either operational or in development. The Sunnynook Solar Project in Special Area #2 stands as one of the most significant, featuring a 280 MW solar installation integrated with a 100 MW battery storage system913. Developed initially by Westbridge Renewable Energy Corp. and recently sold to METLEN Energy & Metals for $41.4 million, this project exemplifies the substantial investment flowing into solar developments in the region17. Located 11 kilometers northeast of Sunnynook, Alberta, the project encompasses 985 acres of privately owned cultivated farmland and is expected to create up to 360 full-time jobs during construction9.

Another noteworthy development is the Jurassic Solar+ project in Special Area No. 2 and Cypress County. This ambitious project combines a 220 MW solar power plant with an 80 MW/160 MWh battery energy storage system11. Covering approximately 1,200 acres of privately owned, cultivated land, the project began development in early 2021 and is designed to generate clean energy for over 35 years. Construction of the battery storage component is anticipated to commence in the first half of 2025, followed by solar power plant construction in the second half of 202611.

The Sounding Creek Solar Park in Special Areas Board 4, being developed by EDP Renewables, will feature 200 MW of solar capacity plus 50 MW of storage12. With an anticipated commercial operation date of 2026, this project is expected to generate enough electricity to power more than 55,000 Alberta homes. The project represents a capital investment of approximately $225 million and will create 300-400 construction jobs and 3-5 permanent positions12.

On a smaller scale, the Youngstown solar project in Special Area 2, developed by PACE Canada LP (a joint venture between Pathfinder Clean Energy and GOLDBECK SOLAR), has been completed with an installed capacity of 7.85 MWp15. This demonstrates that developments of various sizes are contributing to the renewable energy landscape in the Special Areas.

Integration of Solar with Battery Storage

A notable trend across solar developments in the Special Areas is the integration of battery energy storage systems (BESS), which enhance grid reliability and maximize the value of variable solar generation. The Sunnynook Solar Project's 100 MW battery system9 13, Jurassic Solar+'s 80 MW/160 MWh BESS11, and Sounding Creek Solar Park's 50 MW storage component12 all demonstrate this approach.

These integrated systems address one of the primary challenges of renewable energy—intermittency—by allowing excess energy to be stored during peak production periods and dispatched when generation decreases or demand increases. For the Special Areas, which experience significant seasonal variations in daylight hours, this capability is particularly valuable, enabling more consistent energy supply throughout the year.

The development of these combined solar and storage projects also reflects evolving market conditions and regulatory frameworks in Alberta. As the province continues its transition from coal and seeks to balance its energy mix, the flexibility provided by battery storage becomes increasingly important for grid stability and reliability. The substantial investments in these integrated systems highlight industry confidence in the economic viability of solar-plus-storage in the Special Areas, even amid changing regulatory landscapes.

Economic and Community Impact

Job Creation and Economic Benefits

Renewable energy projects in the Special Areas are generating substantial economic benefits across multiple dimensions. Construction of these facilities creates significant employment opportunities, with projects like Sunnynook Solar expected to generate up to 360 full-time jobs during the construction phase9. Similarly, Lanfine Wind created 150 to 200 construction jobs including equipment operators, electricians, and laborers14, while Sounding Creek Solar Park is projected to create 300-400 construction positions12.

Beyond temporary construction employment, these projects establish permanent positions for ongoing operations and maintenance. Sunnynook Solar anticipates creating up to 10 permanent full-time and part-time jobs9, while Lanfine Wind maintains 7 to 10 full-time local positions14. These employment opportunities are particularly valuable in rural areas where economic diversification can be challenging.

Local businesses also benefit through procurement of materials, contracting opportunities, and increased demand for support services. During both construction and operation phases, project developers utilize local companies and services, contributing to broader economic activity in the communities. The Hand Hills Hybrid project, for example, is expected to generate approximately $7 million per year during the project life in tax revenue to Starland County and Special Areas No. 26.

Community Investment and Landowner Benefits

Renewable energy developers in the Special Areas have established various programs to share benefits directly with local communities. The Lanfine Wind Community Fund, for instance, will contribute over $1,000,000 to the Community Foundation of Southeastern Alberta over 18 years of operation, supporting local initiatives and community-based organizations in Special Area No. 3, Oyen, and the Municipal District of Acadia Valley14.

Landowners hosting renewable energy infrastructure receive direct financial benefits through lease payments and/or royalties. These payments provide a secure, parallel revenue stream to standard farming operations, enhancing agricultural economic resilience19. As noted by the Oyen Wind Power Project, these annual payments continue throughout the life of the project, offering long-term income stability.

The Peterson family of Sundre, Alberta, provides a compelling example of successful integration of renewable energy with agriculture. Their 10-kilowatt solar array on their 400-hectare organic grain operation reduced electricity bills by 65% within the first year, from $4,800 to around $1,700 annually7. This case demonstrates the potential financial benefits for agricultural operations that adopt renewable energy technologies.

Environmental Advantages and Challenges

Renewable Production and Carbon Reduction

The wind and solar farms in Special Areas contribute significantly to Alberta's clean energy transition, with substantial environmental benefits. Projects like Sounding Creek Solar Park will save more than 1.1 billion liters of water annually compared to conventional generation and will prevent air pollution that causes smog, acid rain, and climate change12. The Hand Hills Hybrid project, combining wind and solar, is expected to produce enough power to eliminate 360,000 tonnes of carbon dioxide emissions annually6.

These environmental benefits align with Alberta's broader climate objectives. The province has successfully phased out coal power ahead of schedule and is working toward generating 30% of its electricity from renewables by 203048. The renewable energy developments in Special Areas are critical components of this transition, helping reduce the province's carbon footprint while maintaining energy security.

The geographical characteristics of the Special Areas make them particularly suitable for renewable energy generation. Southern Alberta boasts some of the highest solar potential in Canada, receiving over 2,300 hours of sunshine annually—more than any other prairie region7. Similarly, the region's wind corridors feature consistent wind speeds of 20-25 kilometers per hour, ideal for wind energy harvesting7. These natural advantages enable efficient renewable energy production with minimal environmental disruption.

Balancing Development with Conservation

Despite their environmental benefits, renewable energy projects in the Special Areas face challenges in balancing development with conservation priorities. Alberta's recent regulatory changes reflect these tensions, establishing no-go zones and visual impact assessment requirements to protect scenic landscapes, particularly around protected areas1 23.

Wind projects are no longer permitted within the buffer zone around the Rocky Mountains, and developments near areas like Cypress Hills Provincial Park, Dinosaur Provincial Park, and Writing-On-Stone Provincial Park require visual impact assessments2. These regulations aim to preserve Alberta's natural heritage while still enabling renewable energy expansion in appropriate locations.

Agricultural land preservation represents another important consideration. With renewable energy projects now prohibited on top-grade agricultural land unless developers can prove coexistence with farming activities1 3, project planning in the Special Areas has become more complex. Jason Wang, senior electricity analyst with the Pembina Institute, has noted that the new regulations "don't do much to restore confidence in renewable energy developments" and leave "unanswered questions" about assessment processes3.

However, innovative approaches like the Peterson family's integration of solar with their organic grain operation demonstrate that agriculture and renewable energy can successfully coexist when thoughtfully implemented7. The cold, clear winter days in Alberta actually improve solar panel efficiency, with snow reflection enhancing energy production. Additionally, the seasonal alignment of peak solar production with irrigation needs makes solar particularly valuable for Alberta farmers7.

Future Outlook and Trends

Planned Developments and Investment Pipeline

The Special Areas continue to attract significant investment in renewable energy, with numerous projects in various stages of development. The timeline for these developments extends several years into the future, indicating long-term confidence in the region's renewable energy potential despite regulatory changes. Jurassic Solar+, for example, has outlined a preliminary timeline extending to 2028, with battery storage construction commencing in 2025 and the solar power plant becoming operational by 202811.

The Hand Hills Hybrid project, combining wind and solar capacity, is anticipated to begin construction in 2026, with wind operations starting in Q4 2027 and solar operations in Q1 20286. Sounding Creek Solar Park is targeting commercial operation in 202612. These planned developments represent billions in capital investment and will substantially increase the renewable energy capacity in Special Areas over the coming years.

The integration of battery storage with solar installations represents a particularly notable trend. Projects like Sunnynook Solar, Jurassic Solar+, and Sounding Creek Solar Park all incorporate substantial storage capacity, reflecting the industry's move toward more reliable and dispatchable renewable energy systems. This trend is likely to continue as battery technology improves and costs decline, further enhancing the value proposition of renewable energy in the Special Areas.

Adapting to Regulatory and Market Evolution

The renewable energy sector in Special Areas will need to continue adapting to evolving regulatory frameworks and market conditions. Alberta's new rules on project siting, including buffer zones, visual impact assessments, and agricultural land restrictions, have created additional complexity for developers. These regulations have affected 57 projects worth $14 billion, with 35 projects captured by agriculture limitations and another 22 either subject to visual impact assessment or in no-go zones2.

However, the ongoing advancement of projects despite these challenges demonstrates the industry's resilience and ability to adapt. Developers are finding ways to work within the new regulatory environment, focusing on areas that remain open to development and designing projects that can coexist with agricultural activities. The sale of Westbridge's Sunnynook Solar project to METLEN Energy & Metals for $41.4 million in November 202417 indicates that investor confidence remains strong despite regulatory uncertainties.

Market conditions also continue to favor renewable energy development in the Special Areas. Alberta's deregulated electricity market provides opportunities for power purchase agreements with private entities, as demonstrated by BluEarth Renewables' agreement with Shell Energy for the Hand Hills Wind Facility16 and TransAlta's agreement with Pembina Pipeline Corporation for Garden Plain Wind10. These commercial arrangements enhance project economics and reduce market risks, supporting continued development in the region.

Conclusion

The Special Areas of Alberta have emerged as significant centers for renewable energy development, hosting numerous large-scale wind and solar projects that contribute substantially to the province's clean energy transition. Despite recent regulatory changes establishing new restrictions on development locations and requiring visual impact assessments, investment in these regions continues at a remarkable pace. The unique geographical advantages of the Special Areas, including abundant solar and wind resources, combined with Alberta's deregulated electricity market, create favorable conditions for renewable energy expansion.

The integration of battery storage systems with solar installations represents a particularly promising trend, enhancing grid reliability and maximizing the value of variable renewable generation. As these technologies continue to advance and costs decline, the Special Areas are well-positioned to lead Alberta's renewable energy transformation. The economic benefits of these developments, including job creation, tax revenue, and landowner payments, provide valuable diversification for local economies traditionally centered on agriculture and resource extraction.

Looking ahead, the renewable energy sector in Special Areas will need to navigate evolving regulatory frameworks and market conditions while balancing development with conservation priorities. However, the substantial pipeline of projects in various stages of development indicates strong long-term confidence in the region's renewable energy potential. As Alberta works toward generating 30% of its electricity from renewables by 2030, the wind and solar farms of the Special Areas will play an increasingly vital role in achieving this goal while supporting local communities and reducing the province's carbon footprint.

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