Federal support would help Sask. hit net-zero by '35

Stop squabbling and focus on the future, Lynn Oliphant says.

The 2023 federal budget allocates $80 billion in support of clean electricity and green infrastructure designed to clean up Canada's electricity grid by promoting zero and low-emissions technologies.

Premier Scott Moe's recent statements about the cost and practicality of transitioning electricity supply in Saskatchewan to net-zero emissions by 2035 demonstrate either a lack of understanding of this opportunity or a politically calculated rejection of a federal initiative regardless of the benefits to Saskatchewan.

So, what are the implications of this funding announcement for Saskatchewan?

Federal financing for clean energy will be administered by the Canada Infrastructure Bank and the Canada Growth Fund along with investment tax credits. Canada's current electricity system consists of a mix of public and privately held utilities operating within largely isolated grids under provincial jurisdiction.

While 80 per cent of Canada's population is served by near-zero emissions through hydropower, neither Alberta nor Saskatchewan have internal access to large-scale hydropower, which can support intermittent renewables like wind and solar.

In Saskatchewan, 80 per cent of our electricity comes from burning coal and natural gas.

In keeping with the recommendations of the International Energy Agency and the Intergovernmental Panel on Climate Change, Canada has committed to transitioning its electricity supply sector to net-zero emissions by 2035.

Many major economies such as the United States, the European Union, and the United Kingdom have also committed to net-zero electricity by 2035. Achieving this goal in Canada requires shifting electricity supply to zero-emissions alternatives within a 12-year time frame.

Prior to the release of the 2023 federal budget, the government of Saskatchewan was justified in expressing concerns as to the practicality and the financial burden of this net-zero transformation.

The new federal budget will fund the construction of interprovincial east-west electricity transmission corridors along with modernizing electricity grids and the replacement of existing unabated fossil fuel power. Publicly owned utilities such as Saskpower are eligible to apply for such projects.

Grid modernization and expansion of long-distance transmissions corridors means Saskatchewan would no longer be isolated from the large-scale, low-cost hydro generated in B.C. and Manitoba, thereby unlocking the immense potential for renewables in Saskatchewan.

With access to distant hydro to support renewables, Saskatchewan can provide lowcost, clean and reliable electricity to consumers and industry.

Contrary to Premier Moe's statements that unabated natural gas power plants (without carbon capture and storage) could not operate after 2034, under the upcoming federal Clean Electricity Regulations they can continue to operate as needed to meet peak demand and provide backup power, although it will be cost-prohibitive to provide major baseload power to the grid.

Canada's Energy Regulator has modelled provincial energy mixes under a set of least-cost pathways to achieve net-zero electricity by 2035.

By 2030, the regulator's model predicts that Saskatchewan could have six gigawatts of windfarm capacity installed, cutting emissions by 87 per cent, and enabling the complete transition to zero-emissions electricity by 2035.

This projected expansion of renewables in Saskatchewan exceeds the current total installed capacity for power generation in Saskatchewan.

Under this scenario, the intermittent electricity from renewables would be supported by the hydro capacity in B.C. and Manitoba, acting as a battery to accommodate periods when the sun doesn't shine or the wind doesn't blow.

The economic benefits to Saskatchewan of the federal clean electricity funding announcement are obvious. The time has come to end provincial-federal squabbling over carbon pricing, stranded assets, jurisdictional rights and timing of transition.

Instead, the provincial government, Saskpower and the private sector should act in the best interest of consumers, industry and the planet by partnering with the federal government, neighbouring provinces and other stakeholders to build the clean electricity supply sector that will power the economy of tomorrow.