SaskPower’s plan to expand wind power is smart because Saskatchewan has among the best inland wind resources in the country.
Wouldn’t it be great if the provincial and federal governments could get on the same page about how to clean up our electricity grid? In a new report I authored for the Canadian Climate Institute I find that the two sides are closer to agreement than we might think.
The Government of Saskatchewan opposed the regulations. SaskPower offered detailed feedback on the challenges they would face complying with the regulations.
In February 2024, Environment and Climate Change Canada (ECCC) showed that they were listening. They outlined several changes they were considering to address the concerns of utilities like SaskPower.
I worked with the Energy Modelling Hub to model these suggested changes. We built a detailed model of the Saskatchewan electricity sector. We aligned our assumptions with the supply plans SaskPower has presented to the public.
We then compared supply mix, costs and pollution levels with and without the Clean Electricity Regulations. There are differences, but there is a lot they have in common, too.
First, SaskPower’s plan to build out much more wind energy looks solid. With or without the regulations, I find that wind provides low-cost, clean electricity to the Saskatchewan grid. Saskatchewan has one of the best inland wind resources in Canada, and SaskPower is smart to use it.
Second, I find that SaskPower’s electricity will get cleaner, with or without the regulations. In 2030, SaskPower’s coal plants will all be retired, significantly reducing pollution. And as renewable energy like wind and solar expands, SaskPower can burn less natural gas and reduce imports of gas from Alberta.
Third, there will still be pollution in 2035, with or without the regulations. The draft regulations allowed the Chinook gas plant in Swift Current to run until 2039 and the Great Plains gas plant in Moose Jaw to run until 2044. In its revised regulations, ECCC may allow these plants to run for even more years.
I also find some important differences between a future with or without the Clean Electricity Regulations.
With the regulations in place, SaskPower’s pollution will fall faster between now and 2050. The regulations will reduce pollution by between 30 and 40 million tonnes in this time period.
This is a big improvement, equivalent to taking nine million to 12 million cars off the road for a year, and reduces SaskPower’s climate impact by 24 to 32 per cent.
To achieve this climate benefit, the regulations do require SaskPower to accelerate their investments by $4 billion to $6 billion by 2035. Without additional funding support, this would increase residential electricity rates by six to nine per cent in 2035.
This is a concern in a province that already has high electricity rates compared to much of Canada.
Greater collaboration can address this concern, however, and here there is also reason to be encouraged. The federal government is finalizing the design of tax credits to help pay for clean energy investments.
I find that a generous tax credit that provides 30 per cent of capital costs for SaskPower projects would provide about $3 billion in funding to Saskatchewan by 2035. This would make up for much of the added investment required by the regulations, significantly easing rate pressures and affordability concerns.
It is my hope that the provincial government can then enter into goodwill discussions with the federal government.
Everyone is aiming to reach the same goal of cleaner, affordable, reliable electricity. Collaboration, flexibility and some well-placed federal funding can help ensure SaskPower delivers on this goal and achieves its clean power potential.
Brett Dolter is an Associate Professor in the Department of Economics, University of Regina where he teaches courses in climate change policy, cost-benefit analysis, ecological economics, and microeconomics.
Share your views
Our websites are your destination for up-to-the-minute Saskatchewan news, so make sure to bookmark thestarphoenix.com and leaderpost.com. For Regina Leader-Post newsletters click here; for Saskatoon StarPhoenix newsletters click here