A recent study has revealed that the Saskatchewan government’s choice to renovate its coal-fired power plants might incur expenses of up to $46.4 billion over the next two decades. This amount significantly exceeds the earlier estimate contained in leaked internal SaskPower documents, which projected costs of $26 billion over 25 years.
Brett Dolter, an associate professor specializing in economics at the University of Regina, conducted an analysis to determine the financial implications of Saskatchewan’s strategy to utilize coal-fired power plants as a transitional step towards nuclear power and the establishment of Small Modular Reactors (SMRs). Dolter’s assessment indicates that this plan will be more costly and environmentally harmful compared to retiring the coal plants and constructing a mix of natural gas facilities and renewable energy systems, which was the original provincial proposal before a policy reversal in early 2025.
Highlighting potential savings, Dolter emphasized that incorporating carbon pricing into the calculations further underscores the economic advantages of alternatives. In the absence of carbon pricing for heavy emitters, the projected cost of reinforcing coal operations over the next 20 years would be $30.2 billion.
When factoring in carbon pricing, Dolter estimated that the total expenditure escalates to $46.4 billion. He underscored the impact of carbon pricing on reducing costs, stressing the financial burden associated with pollution from coal plants.
While emphasizing the financial implications of the current course of action, Dolter refrained from speculating on the rationale behind the government’s decision. In response to inquiries regarding his analysis, the provincial government provided a statement emphasizing the importance of reliable and affordable electricity for Saskatchewan’s ongoing development.
Furthermore, Dolter warned of potential financial and legal risks associated with the province’s departure from federal regulations concerning clean electricity and coal-fired power. By deviating from these regulations, the province could face legal challenges and incur substantial costs, potentially leading to wasted investments.
