A recent study reveals that the Saskatchewan government’s decision to revamp its coal-fired power plants could incur costs of up to $46.4 billion over the next two decades. This amount significantly surpasses the previously leaked internal SaskPower documents estimate of $26 billion over 25 years. Brett Dolter, an associate professor at the University of Regina specializing in economics, conducted the analysis to assess the expenses associated with Saskatchewan’s strategy of transitioning from coal-fired power plants to nuclear power and Small Modular Reactors (SMRs).
Dolter’s research indicates that maintaining the coal plants and integrating SMRs will be more costly and environmentally detrimental compared to retiring the coal facilities and establishing a mix of natural gas plants and renewable energy systems, as initially planned by the province. Dolter emphasized the potential economic benefits of an alternative scenario, which could save money, reduce emissions, and result in an average annual saving of over $800 per person.
By incorporating carbon pricing into the calculations, the projected expenses rise to $46.4 billion when considering the impact of pollution from coal plants. Dolter highlighted the significant cost reduction when factoring in carbon pricing, emphasizing the financial implications of the pollution generated by coal-fired plants.
Despite the clear financial implications of the current trajectory, Dolter refrained from speculating on the government’s rationale for choosing this path. The provincial government did not directly address Dolter’s analysis when approached by CBC News, emphasizing the significance of reliable and affordable electricity for Saskatchewan’s ongoing development.
Mayor Tony Sernick of Estevan expressed concerns about the potential impact of ending coal-fired plants on the city’s population, noting that prior to the decision, the city was anticipating a significant population decline. Sernick acknowledged the shift in dynamics following the government’s refurbishment decision, expressing optimism for future developments in Estevan.
The decision to revamp coal-fired plants in Saskatchewan contrasts with Canada’s long-standing plan to phase out coal, which dates back to 2012. The federal regulations under former prime ministers Harper and Trudeau aimed to eliminate coal-fired power plants by 2030, a commitment that Saskatchewan had previously pledged to uphold. Minister Harrison’s rejection of these regulations raises financial and legal concerns, potentially exposing the province to legal risks and financial losses if the coal plants are refurbished but later forced to shut down due to legal challenges.
