A recent study revealed that the Saskatchewan government’s plan to renovate its coal-fired power plants could result in costs reaching up to $46.4 billion over the next two decades. This amount 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 an analysis to evaluate the expenses associated with Saskatchewan’s strategy to utilize coal-powered plants as a transition to nuclear power and the installation of Small Modular Reactors (SMRs). Dolter’s research indicates that retaining the coal plants and introducing a mix of natural gas plants and renewable energy systems would be both more costly and environmentally harmful compared to retiring the coal plants as previously planned by the province.
Dolter sourced information from leaked SaskPower documents disclosed by the Saskatchewan NDP, data submitted to the province’s rate review panel, and some assumptions due to the lack of transparency from the provincial government regarding its internal analysis. He emphasized that factoring in carbon pricing reveals even more substantial savings. Without carbon pricing, the expense of continuing with coal power could amount to $30.2 billion over the next two decades.
When accounting for carbon pricing, Dolter projected the total cost to escalate to $46.4 billion. He highlighted the significant impact of carbon pricing on reducing costs, emphasizing the financial burden associated with the pollution generated by coal plants.
While Dolter underscored the financial implications of the current trajectory chosen by Saskatchewan, he refrained from speculating on the rationale behind the government’s decision. The government’s response to Dolter’s analysis was a general statement emphasizing the importance of reliable and affordable electricity for the province’s growth.
The article also delves into the potential economic and legal risks associated with Saskatchewan’s deviation from federal regulations aimed at phasing out coal-fired power. The government’s decision to extend the lifespan of coal plants raises concerns about legal challenges and financial implications in the event of potential court rulings against the province.