Sask. doubles down on coal with potential plan to keep power plants running
Province has already spent millions to help communities transition away from coal
Saskatchewan is looking at doubling down on coal by potentially extending coal-fired power plants, a move one expert says puts the province at risk of being a "pariah."
Jeremy Harrison, the province's minister of Crown Investments Corporation, has directed SaskPower to create a plan for power generation that could include extending the operating lives of its coal-fired power plants, including the Boundary Dam Power Station near Estevan, Sask., and Poplar River Power Station near Coronach, Sask.
"This plan will prioritize affordability and reliability with an all-of-the-above approach to power production that includes a future for coal," the Government of Saskatchewan wrote in a statement.
The shift flies in the face of years of work going back to 2012, when Prime Minister Stephen Harper's federal government passed new regulations that would see the end of most coal-fired power by mid-21st century. In 2016, Trudeau's government passed further regulations requiring all coal-fired power stations to be closed down after 50 years of operation, or by 2030, whichever comes first. The province has previously said it would comply with those rules.
The Saskatchewan government has announced millions of dollars in funding for Estevan and Coronach to help their populations transition away from coal and toward other economic opportunities. In 2020, it announced Estevan would receive $8 million and Coronach would receive $2 million. A further $550,000 was announced for Coronach in 2023.
Brett Dolter, a professor of economics at the University of Regina, said the province's move makes little sense.
"Ontario has phased out coal. Alberta phased out coal. Nova Scotia, New Brunswick are moving to phase out coal by 2030. We would be the only province left burning coal and I'm not sure we want to be in that pariah position," said Dolter.
"There's a risk for reputation. There's a risk for investment dollars."
The Estevan Chamber of Commerce published a statement praising Harrison's comments, saying they provided the community with answers it has wanted for years.
"The Estevan Chamber of Commerce looks forward to the certainty regarding our coal-fired power plants," the statement said.
Uncertain cost and political risk
The provincial government said it has directed SaskPower to explore a potential "expansion of Carbon Capture and Storage technology" as part of its new plan.
It's not clear how much that might cost, or what it will take to extend the lives of the existing coal-fired power plants at Boundary Dam and Poplar River.
Amr Henni, a professor of industrial engineering at the University of Regina, said it's unlikely to be cheap.
"Most of these plants are at the end of their life and there should be a huge investment to keep them running," said Henni.
Dolter said it's likely this change will put the province in violation of federal regulations and could lead to monetary fines. He said this another example of the province using a Crown Corporation as a political tool, as it did in its dispute over remittance of the the federal carbon tax on home heating.
"You wouldn't see a private company taking this on and saying we're going to not obey this federal law. The shareholders wouldn't allow it, the CEO wouldn't want to be paying the price for that, but we see that in Saskatchewan, this willingness to weaponize the Crowns," Dolter said.
The province said its decisions around power production will be "based solely on what is best for Saskatchewan."
"We will not be following unconstitutional federal regulations that would risk the affordability and reliability of our power supply," it said in a statement.
2050 net-zero committment in doubt: expert
Canada's recently revealed Clean Electricity Regulations lined up with Premier Scott Moe's commitment to reach net-zero carbon emissions by 2050.
"SaskPower has been working toward that in all of their supply planning. This takes that plan and throws it in the garbage," Dolter said.
It's no longer clear if the province remains committed to the 2050 target, Dolter said.
"I don't think we're going to get it by doubling down on coal-fired electricity," said Dolter.