A recent analysis has revealed that the decision by the Saskatchewan government to renovate its coal-fired power plants could potentially reach up to $46.4 billion in costs over the next two decades. This amount surpasses the estimate found in leaked internal SaskPower documents, which indicated a cost of $26 billion over 25 years.

Brett Dolter, an associate professor in the Department of Economics at the University of Regina, conducted the analysis to determine the expenses associated with Saskatchewan’s strategy to utilize its coal-fired power plants as a transition to nuclear power and Small Modular Reactors (SMRs). According to Dolter, his research demonstrates that the current plan will be more costly and environmentally harmful compared to retiring the coal plants and developing a mix of natural gas facilities and renewable energy systems, as initially intended by the province.

Dolter’s investigation drew insights from leaked SaskPower documents disclosed by the Saskatchewan NDP, data submitted to the province’s rate review panel, and certain assumptions due to the lack of transparency regarding the government’s internal analysis. He highlighted that the economic advantages become more apparent when factoring in carbon pricing, emphasizing that without such pricing, the expense of continuing with coal would reach $30.2 billion over the next 20 years.

The cumulative cost projection rises to $46.4 billion when factoring in carbon pricing, Dolter added, referencing Ottawa’s memorandum of understanding with Alberta. He underscored the significant impact of carbon pricing on the overall expenses, emphasizing the financial consequences associated with the pollution generated by coal plants.

While Dolter emphasized the clear financial implications of Saskatchewan’s current trajectory, he refrained from speculating on the government’s rationale for choosing this path despite being aware of the costs.

In response to Dolter’s analysis, the provincial government issued a statement reiterating the importance of reliable and affordable electricity for Saskatchewan’s progression. Crown Investments Corporation Minister Jeremy Harrison emphasized the government’s commitment to an “all-of-the-above” approach in meeting the province’s energy needs, focusing on the responsible utilization of Saskatchewan’s resources and the future integration of nuclear energy.