Sask. coal communities welcome power plant life extension
Some experts worry move could lead to protracted fight with federal government
The mayors of two of Saskatchewan's biggest coal communities say they're happy with the provincial government's decision to extend the life of the province's coal-fired power plants.
On Wednesday, Crown Investments Corporation Minister Jeremy Harrison sent a letter to SaskPower employees saying the province will extend the life of all of its coal plants, which were previously scheduled to be closed by 2030 to help meet Canada's climate goals.
"The Government of Saskatchewan remains committed to the goal of a net zero grid by 2050," Harrison said, adding that keeping the coal stations open, with the help of carbon capture technology, would ease the transition into nuclear energy.
"This must be done responsibly and be based on the deployment of nuclear generating assets fuelled by uranium mined in our province."
SaskPower currently operates three coal-fired power plants: the Shand and Boundary Dam power stations near Estevan, and the Poplar River power station outside of Coronach.
Coronach's mayor, Cal Martin, said on Thursday that his community was relieved with the news.
"Doing away with coal and gas fired power generation on Dec. 31, 2029, that's an impossible task in our province," he said, noting that two-thirds of the town's population had jobs tied to the plant.
"Some people are still coming to adjust to the fact that they're not going to have to sell their house. They're not going to have to give their house away and they're not going to have to move, with the commitment basically out to 2050."
Westmoreland Mining Holdings, which owns the coal mines that produce the coal for the three stations, commended the provincial government's decision in a statement on Thursday.
"We believe this decision is grounded in common sense and the best interests of everyone who calls Saskatchewan home," Westmoreland CEO Martin Purvis said.
Estevan Mayor Anthony Sernick echoed Martin, saying in a statement that he fully supported the government's decision.
"Coal generation has long been a cornerstone of Saskatchewan's power supply due to its reliability and affordability," he said. "This is a generational decision that is a critical step toward protecting our province's energy security and economic stability."
Merissa Scarlett, the executive director of the Estevan Chamber of Commerce, said her community members have had a very positive reaction to the news.
"It really just helps us come forward with that stability," she said.
At the same time, she said, the city is still committed to diversifying its economy and introducing nuclear power.
Scarlett estimates that the income generated from the power stations and coal mines comprise about 20 per cent of the local economy.
"I think most people here are accepting that coal is going to change, it may not be here forever, but for the time being, it's just to bridge that gap into getting us to nuclear power," she said.
"It's going to be a long time for nuclear power. When we had SaskPower coming down here and talking 2030s, well, what are we doing from 2030 to whenever those nuclear power plants get online?"
Looming federal fight
The decision will likely set up a fight with the federal government. The Canadian government wants to reduce the country's greenhouse gas emissions to 40 per cent below 2005 levels by 2030, and reach net zero emissions by 2050. Reaching the 2030 goal would require a national reduction of more than 30 per cent of 2023's emission levels.
According to the Canadian Energy Regulator, 41 per cent of Saskatchewan's energy generation is produced by coal. Natural gas makes up 44 per cent, while hydro, wind and solar power comprise 15 per cent. There are currently no nuclear power plants providing energy or being built.
That energy mix makes Saskatchewan Canada's third most emissions-intensive electricity system, according to the National Inventory Report. The province generates 26 per cent of the country's greenhouse gas emissions from electricity generation, despite producing only four cent of the power.
In his letter to SaskPower, Harrison said Saskatchewan does not recognize the legitimacy of federal clean energy regulations, and that the provincial government has exclusive authority to manage electrical energy generation.
Saskatchewan's Opposition NDP said on Thursday that the money required to keep the plants running should have been spent on less carbon-intensive projects.
"There is nothing in yesterday's announcement to cut your costs or plan for the future. Investment should be made in power plants that will operate beyond 2050, and are resilient to future policy changes at the provincial and federal levels," NDP MLA Aleana Young said.
Brett Dolter, who teaches economics at the University of Regina, also rebuffed Harrison's argument.
"I'm not sure how we think it's a scheme that we can allow our Crown corporation to disobey a federal law and have no consequences," he said.
The provincial government declined to say how much money it will cost to refurbish and upkeep the three plants for an additional two decades.
Dolter said the decision has the potential to lead to stranded assets if the provincial government fails to override the federal government's climate regulations.
"There's too many risks," Dolter said. "I think of it as the equivalent of a movie store. You know, I used to go to Blockbuster to rent movies. And if [Blockbuster] were going to go and say, oh, Netflix has come, I think we should probably build more stores, build more outlets and make them fancier — that's a bad economic strategy."
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