The latest report from the provincial auditor suggests SaskPower may need to adjust its approach to meet federal Clean Electricity Regulations by 2035.
In her latest report, Saskatchewan’s provincial auditor has issued two recommendations to SaskPower related to the Crown’s goal of reducing emissions.
Volume 2 of Tara Clemett’s 2024 report was released Tuesday and notes her office audited the Crown electricity provider’s “planning processes, for the period ended August 31, 2024, to transition to low and non-emitting energy sources to meet its greenhouse gas emissions reduction and renewable energy generation targets.”
“We found overall SaskPower generally had effective processes,” the report states.
However, there were areas where Clemett’s report suggests SaskPower should make further efforts.
The report recommends the Crown electricity provider clarify its plans to take action when incremental emissions targets are not met.
It states that in 2023-2024, SaskPower planned to reduce greenhouse gas (GHG) emissions by eight per cent compared to 2005 levels. But, during that period, GHG emissions only decreased by half that, according to the report.
SaskPower’s own analysis found it “did not always meet its key targets relating to the low and non-emitting energy transition,” according to the auditor’s report.
The report states SaskPower pointed to “external factors” such as construction delays as a result of the COVID-19 pandemic, funding delays and “unfavourable market conditions” as contributing to its falling short of annual targets in recent years.
“However, we found reports did not outline the actions SaskPower planned to get back on track to meeting its targets,” the report states.
“Outlining clear action plans to address missed incremental targets demonstrates SaskPower’s intent to act so long-term targets (50% reduction by 2030) are not missed, and cost impacts are minimized.”
Further, the report recommends that SaskPower “analyze further expansion of distributed energy resources to help it transition to low and non-emitting energy alternatives.”
Describing distributed energy resources, it states these are “smaller generation units located on the consumer’s side of the meter,” and it provides the example of rooftop solar panels.
“Distributed energy resources could be a greater component to SaskPower’s long-term supply plan,” the report states, noting provinces like Alberta and Ontario are planning for increased capacity from such sources of electricity.
According to the report, the province ranked fourth highest among provinces and territories for GHG emissions in Canada in 2022 (first in per capita emissions), which includes emissions emitted from electricity generation.
“Reducing greenhouse gas emissions is important to help mitigate the effects of climate change,” the report states.
The report discusses how SaskPower analyzed four different “supply pathways” as part of its long-term power supply planning and settled on a plan that gets SaskPower to net-zero emissions by 2050.
However, the auditor’s report states that under this plan, SaskPower would not be compliant with the draft federal regulations which aim to achieve a “net zero” electricity grid by 2035.
“SaskPower may need to adjust its pathway once the Clean Electricity Regulations are finalized,” the report states.
Clemett notes that Saskatchewan is “well positioned” for “non-emitting” energy technology, such as wind or solar. However, it acknowledges that these technologies provide electricity generation that is “intermittent or variable” and backup sources, such as natural gas, are required to ensure reliability.
The report makes it clear that “more needs to be done to ensure SaskPower has adequate plans in place to grow our power generation capacity and reduce emissions,” said NDP shadow minister for SaskPower Aleana Young in an email response provided Tuesday afternoon.
“Saskatchewan New Democrats support an all-of-the-above approach to power generation to ensure that Saskatchewan people have access to reliable, affordable, sustainable electricity.”
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