A recent analysis reveals that the decision by the Saskatchewan government to renovate its coal-fired power plants might 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.
The study conducted by Brett Dolter, an associate professor at the University of Regina’s economics department, aimed to determine the expenses associated with Saskatchewan’s strategy of utilizing coal-fired power plants as a transition to nuclear power and the installation of Small Modular Reactors (SMRs).
Dolter’s research indicates that the current plan is not only more costly but also more environmentally damaging compared to retiring the coal plants and establishing a mix of natural gas facilities and renewable energy systems, which was the province’s initial proposal before the policy reversal in early 2025.
The analysis relied on leaked SaskPower documents disclosed by the Saskatchewan NDP, data submitted to the province’s rate review panel, and some assumptions due to the absence of the government’s internal analysis being shared.
Incorporating carbon pricing into the equation further highlights the savings potential. Without carbon pricing, persisting with coal would amount to $30.2 billion in the next two decades. However, with carbon pricing included, the cumulative cost escalates to $46.4 billion, aligning with Ottawa’s memorandum signed with Alberta earlier this year.
Dolter emphasized that with carbon pricing, the costs are significantly reduced, emphasizing the substantial financial burden from the pollution emitted by coal plants. Despite the clarity in the financial implications of the current course taken by Saskatchewan, Dolter refrained from speculating on the government’s rationale behind the decision-making process.
When questioned by CBC News regarding Dolter’s analysis, the provincial government responded with a statement emphasizing the importance of reliable and affordable electricity for Saskatchewan’s growth. Crown Investments Corporation Minister Jeremy Harrison reiterated the government’s commitment to an “all-of-the-above” strategy to meet energy requirements, incorporating the utilization of provincial resources and transitioning to nuclear energy powered by Saskatchewan uranium.
The article also mentions the potential financial and legal risks associated with Saskatchewan’s divergence from federal clean electricity regulations and coal-fired power rules, posing challenges in compliance and potential legal repercussions.