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The Ecology Action Centre is calling for a five-year moratorium on the burning of waste wood - known as biomass - to produce electricity.
Biomass, which includes wood shavings and junk logs, is a key part of the province's plan to reduce its dependence on coal.
There are concerns, however, that the plan will lead to more clear-cutting.
"The forest cannot be sacrificed on the altar of quick, cheap electricity," said Ray Plourde, wilderness co-ordinator at the 37-year-old ecological organization.
The government is promising new regulations to prevent that.
"If we don't change policy, then there's probably going to be more clear-cutting," said Natural Resources Minister John MacDonell.
In April, the government announced a target for 40 per cent of all electricity to come from renewable sources by 2020.
But Plourde said burning biomass comes at too high a cost.
"At the end of the day, these targets and the word 'renewable' are almost becoming corrupted. We don't feel burning the forest for electricity is green at all," he said.
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