Alberta’s Energy Transition: What Impacts Foreign Participation?

Abstract

Traditionally seen as an oil and gas powerhouse, Alberta has witnessed unprecedented growth from renewables. But this growth requires significant investment, with estimates as high as $5.4bn annually by 2040. Multinationals provide one source of funding in the form of foreign direct investment (FDI). This study examines what influences foreign companies to enter Alberta’s renewable energy market. Expert interviews reveal what matters most to investors, and how the province might attract future international investment. Organized around seven key themes, the study finds that investments are a multi-criteria decision-making process dominated by industry and organization-specific factors. The research highlights that Alberta’s open and deregulated marketplace benefits from abundant natural resources, supporting robust financial performance. Investor reactions to the 2023 moratorium on approvals, are explored, and have added to concerns about the polarized political landscape, limited provincial government support, and regulatory delays.