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The government of Saskatchewan has opposed the Canadian federal government’s proposed Clean Electricity Regulations (CER), saying they would cost the province around $29.26 billion (CAD 40 billion) from now until 2035.
The proposed regulations are aimed at accelerating progress towards a net zero electricity-generating sector, according to Canada Gazette, Part 1, published in August by the Canadian Government. The regulations would “set performance standards that would ensure that the sector achieves significant transformation by 2035, so that a robust foundation of clean electricity is available to power the electric technologies”, according to the Gazette.
The Saskatchewan government submitted its response to the federal government’s public consultation on the proposed CER, urging the federal government not to proceed with the regulations as currently proposed, according to a statement Wednesday.
The province’s principal electric utility, Saskachewan Power Corporation (SaskPower), said that electricity rates could more than double by 2035 to cover the costs associated with the CER and federal coal regulations.
“The federal government’s approach, in an attempt to regulate Saskatchewan’s electricity system, is unaffordable, unconstitutional, and technologically and logistically unattainable”, Crown Investments Corporation Minister Dustin Duncan said in the statement. “The proposed Clean Electricity Regulations will jeopardize the reliability of Saskatchewan’s power grid, and increase power rates to an unaffordable level”.
To comply with the CER, “SaskPower would need to expand, replace and rebuild more than 100 percent of its current power generating capacity of more than 5,400 megawatts in just 11 years while also significantly expanding its transmission infrastructure”, the statement said.
The Sasketchawan government said the province “does not have an alternative reliable source of non-emitting baseload power to fully replace coal- and-gas-fired generation in the near term”. The government noted that it had already invested billions of dollars in its transition to a net-zero future, including solar, wind, biomass, natural gas generation and increased hydro imports. The province’s plan relies on the potential success of a few key technologies currently in the pre-commercial stage including nuclear small modular reactors, carbon capture on natural gas, and long-duration utility-scale energy storage, according to the statement.
In a letter sent to Minister of Environment and Climate Change Steven Guilbeault, Duncan further explained that Environment and Climate Change Canada “significantly underestimates the cost” of the proposed regulations. Duncan also wrote that further constraining the achievability of the CER is the “grossly insufficient federal funding plan”.
Duncan wrote that the CER “represents another serious overreach by the federal government into provincial jurisdiction”, arguing that the draft regulations contravene the Canadian Constitution where it states that provinces are assigned exclusive jurisdiction for the development and management of electric generation sites.
Finally, Duncan asserted that the federal plan is “simply technologically and logistically unfeasible and unattainable”, given that Sasketchawan’s electric grid took 90 years to build, while the CER would necessitate the reconstruction of the province’s electrical system in just 10 years.
In May, Sasketchawan Premier Scott Moe outlined Saskatchewan’s plan for electricity generation to 2035 and beyond. The plan includes a commitment to achieving net-zero by 2050 while maintaining an energy mix that ensures reliable baseload power and affordable rates for customers.
In a post Wednesday on X, formerly Twitter, Moe said, “The proposed Clean Electricity Regulations will leave Saskatchewan families paying more than double to keep the power on. We will not risk the affordability and reliability of Saskatchewan’s power grid to attempt the impossible based on an arbitrary federal emissions target and timelines. We are calling on the federal government to recognize our plan outlined nearly six months ago that will achieve net-zero by 2050, while maintaining an energy mix that ensures reliable baseload power”.
To contact the author, email rocky.teodoro@rigzone.com
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