Pembina Institute electricity analyst Jason Wang speaks with Alberta Primetime host Michael Higgins about nuclear power. This interview has been edited for clarity and length. Michael Higgins: In terms of fitting into Alberta’s electricity dynamics, how much of a need do you see there being for the addition of nuclear energy? Jason Wang: It’s a positive step, in our view, that they’re asking these questions. Alberta’s electricity system has historically been overly reliant on coal and natural gas for electricity so looking at more options is definitely a good thing. Renewable energy has been one source of growth in our sector, and looking at other options is important to reduce our reliance on just gas now that coal has been phased out. In our view at Pembina Institute, we’re a little disappointed that the panel’s only focusing on nuclear energy and not a bigger question of how do we build a grid for the future that’s ready to support growing economies that include data centres but actually go beyond that into things like green steel, clean cement, advanced manufacturing and other technologies. MH: In terms of building that grid for the future, how would the introduction of nuclear impact the competitive dynamics within Alberta’s electricity market? Is this the kind of development that would bring electricity prices down for homeowners and for businesses? JW: We took a look at basically every project that’s been built around the world in the last six years; they’ve all come in over cost and over time. Projects have averaged coming in at over double their original budgets, and they’ve been delayed sometimes just a couple of years, but in some projects even more than a decade. So that’s definitely of concern. In terms of how that’s going to be actually introduced in Alberta, there is some uncertainty. In other places around the world they have Crown corporations who have been building these facilities, including in Ontario. The premier yesterday said that Alberta might be open to that possibility but would prefer a project market approach. This isn’t the first time we’ve asked this question about nuclear energy in Alberta. One of the panel members was part of another panel, in 2008, asking a very similar question. Between 2008 and now the market just has decided that it’s not the best fit for Alberta. There are more cost-effective options, gas being one of them, renewables being another huge one. In 2025, we see other options that have become available to consumers, like rooftop solar, for households and for businesses, that connect us to other provinces so we can share all the abundant resources that we have. Energy efficiency, demand side measures, even advanced geothermal is becoming a possible type of energy production as well. MH: Where would you see it leaving the renewable energy sector in our province? Would there still be room for natural gas? JW: Nuclear energy does not compete against renewables. This is not nuclear versus renewables. They fill very different roles on the electricity system. In fact, nuclear energy would probably compete the most with gas electricity. Conversations right now about introducing nuclear energy and how the government might be interested in standing up a Crown corporation to implement it. That actually introduces tremendous uncertainty for natural gas investors. Especially folks who are thinking about things like carbon capture and storage, a technology that’s actually more mature than some of the small modular reactors that have been discussed, and we actually still haven’t seen implemented yet unfortunately. That’s just also one of the many options that we could see, but overall, there’s quite a lot of uncertainty with nuclear energy development. It is low emissions, but in terms of cost, the last couple of years is indicating it might actually raise prices for Albertans if we choose to go down this path. MH: With all of that said, what are your expectations now of this panel of experts that the government has formed and the role it will play in this conversation moving forward? JW: It’s great that there is an expert panel formed. Those folks are very respectable members, and I hope that the panel does ask Albertans and listen to Albertans throughout this whole process. I really wish that the panel would ask a question of not just, ‘How do we build nuclear energy?’ Instead, ‘How do we build a grid that’s ready for the future?’ It’s 2025, most jurisdictions around the world, including across Canada, recognize that clean electricity is the backbone of a prosperous future and a growing economy. Alberta seems to understand that maybe that’s important for data centres, but that’s just the tip of the iceberg. Like I said, we need to be really preparing ourselves.
