Clean Electricity Regulations: Saskatchewan Chamber of Commerce

Brian Zinchuk

Brian Zinchuk is editor and owner of Pipeline Online

Shand Power Station. Photo by Brian Zinchuk

REGINA – The Saskatchewan Chamber of Commerce made a submission to the Saskatchewan Economic Impact Assessment Tribunal convened to look into the federal Clean Electricity Regulations. On June 25, the Government of Saskatchewan defied Ottawa, saying that this province would not be following those impending regulations. 

Here is the Chamber’s entire submission, verbatim:

Saskatchewan, like all provinces, is committed to addressing climate change and reducing
greenhouse gas emissions. However, the federal government’s proposed Clean Electricity
Regulations, which mandate a 2035 net-zero emissions target for Canada’s electricity sector,
pose significant challenges for our province. Saskatchewan’s electricity grid composition relies
heavily on natural gas and coal, making the transition to cleaner sources complex.

1. The Saskatchewan Mix
   Saskatchewan’s electricity grid is currently composed of 40% natural gas, 25% coal, 16% hydro, 11% wind, and 3% solar. Achieving the federal 2035 net-zero target would require a 65% reduction in electricity production from carbon-emitting sources, primarily natural gas and coal. However, Saskatchewan’s energy resources are not yet depleted, and it is essential to utilize the full capacity and life cycle of our existing assets to generate electricity sustainably.
2. Capital Investment and Economic Growth:
   The transition to cleaner energy sources requires a substantial capital investment of $46 billion from 2023 to 2035. However, the federal government is providing only $54 billion for the entire country to achieve these targets. To meet the 2035 federal goal, Saskatchewan’s economy and GDP must grow by $27 billion within the same timeframe. Striking this balance between economic growth and environmental objectives is crucial for the province.
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3. Clean Electricity Regulations:
   The proposed Clean Electricity Regulations represent a significant departure from the usual provincial control over electricity policy in Canada. While the federal goals of phasing out coal-fired generation by 2030 and achieving net-zero emissions by 2035 are commendable, imposing an emissions cap on large electricity generating facilities in 2035 at 30 tonnes per gigawatt hour poses a challenge, particularly for Saskatchewan, with its current grid composition.
4. Federal Tax Credits:
   The federal government’s consideration of tying substantial tax credits and grants for electricity projects to a commitment to achieve an emissions-free electricity grid by 2035 overlooks Saskatchewan’s unique challenges. This policy change could hinder the province’s ability to access much-needed funding for transitioning to cleaner energy sources.
5. Affordability
   The projected rise in electricity infrastructure costs by 2050, reaching around $400 billion, and the federal deficit creates additional financial challenges. These costs will impact the entire supply chain, and it is crucial to assess the affordability of rapid transitions carefully.
6. Constitution and Jurisdiction:
   The constitutional debate over federal regulations in provincial electricity production is a critical issue. While provinces argue that electrical energy falls under their jurisdiction, the federal government claims that reducing greenhouse gas emissions is a matter of national concern. Balancing these concerns is essential to ensure a fair and effective transition.
7. Conclusion:
   The Saskatchewan Chamber of Commerce acknowledges the importance of reducing greenhouse gas emissions and transitioning to cleaner energy sources. However, the federal 2035 net-zero electricity grid targets present significant challenges for our province. Achieving a balance between environmental objectives and economic growth is crucial. Saskatchewan is committed to making progress but requires understanding, flexibility, and support from the federal government to navigate these complex transitions successfully.

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• 0022 Grimes winter hiring
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