A new independent cost analysis suggests Saskatchewan could save billions of dollars by replacing aging coal-fired power plants with natural gas generation instead of refurbishing the existing coal fleet. The report, prepared by University of Regina associate professor of economics Brett Dolter for the C.D. Howe Institute, compares the long-term costs of SaskPower’s current plan to refurbish three coal-fired generating stations with an alternative that relies on new natural gas generation supported by wind and solar power. “Right now Saskatchewan has to make some decisions about the future of our electricity system,” he said. “We had a plan to phase out coal-fired power plants, replace them with a mix of gas and renewables. The province instructed SaskPower not to do that.” SaskPower plans to refurbish it’s three coal-fired power plants as a bridge to future nuclear power. According to the report, refurbishing and operating coal plants for the next twenty years will cost $30.2 billion or $46.4 billion with carbon pricing factored in. Four new combined cycle gas plants of equivalent output, backed by wind and solar would cost $17.5 billion to build and operate until 2050 or $21.6 billion with carbon pricing included. Natural gas would be half the price. “We are talking about savings approaching a billion or more per year and if you think about that per person in Saskatchewan this is like you know $800 or more per person per year,” Dolter said. The new study backs what the Saskatchewan NDP has been saying about the issue. “We can save tens of billions of dollars, generate $33 billion of economic activity and build a real plan for Saskatchewan’s future,” NDP MLA Aleana Young told reporters Monday. The provincial government had no immediate response to the new cost analysis but in the past has stated that natural gas comes primarily from Alberta while burning coal creates jobs in Saskatchewan’s mining sector.
