Contribute to the Future Supply Plan

Thanks for your question. Now more than ever, customers want to engage in decisions about- and participate in- Saskatchewan’s power future. This includes understanding new technologies’ pros and cons and how we could use them in Saskatchewan. We’ve been asking our customers about the values we should prioritize as we plan for the future. As an example, some of our biggest power users have said they want to see a decrease in greenhouse gas emissions. We’ve also heard from customers that their priorities are affordable and reliable power. This feedback is integral to the way we shape our energy transition plans and the technologies we use to meet our customers’ priorities.

Thanks for engaging with us! Your question touches on elements of a decentralized vs centralized power system which we know is a growing area of interest during the energy transition and one we’re considering as we plan for the future.

To answer your first question, our current Net Metering program no longer includes installation rebates or grants and we aren’t looking at re-introducing any. That’s because residential solar photovoltaic systems have become readily available in the Saskatchewan market and their prices are now significantly lower than when such rebates were first introduced. Our Net Metering program is designed for customers who are interested in offsetting their own power use to help lower their monthly bill. The program successfully delivers on that goal with an average of 400 new program applicants each year. 

When it comes to achieving our GHG emissions reduction targets, we don’t depend on rooftop solar because there are more cost-effective and efficient technologies to reduce GHG emissions – such as utility-scale renewables. We’re currently in the competitive process to build 400 MW of wind power and 200 MW of solar power in south central Saskatchewan. That’s on top of a competition that recently closed for a 100-MW solar facility near Estevan, which will be the largest solar facility in Saskatchewan to date. These competitions have shown again that utility-scale wind and solar facilities are more economical than roof top solar and help keep power rates cost-effective. It’s also worth noting that these new facilities are built by Independent Power Producers (IPPs) through Power Purchase Agreements (PPAs) so the IPPS are responsible for building, maintaining and operating the wind and solar facilities, not SaskPower.  

There’s no one supply option that can meet all of Saskatchewan’s power needs, that includes solar power. So even though Saskatchewan does have tremendous solar potential, the profile for solar here doesn’t align with how Saskatchewan customers use electricity. Unlike most American utilities and many in Canada, Saskatchewan is a winter peaking utility. That means that the demand for electricity is greatest in the winter between 6-9 p.m. and SaskPower must serve that demand in real time. During that period of peak demand, the sun has set, and customers aren’t able to rely on any solar generating systems for power. For net metering customers (and everyone else), that means relying on other sources of power generation like natural gas or coal. So all customers – with rooftop solar panels or not – need back up power from SaskPower and need the system/infrastructure that comes with it. Essentially, net metering customers rely on the SaskPower grid just as much as non-net metering customers. Of the 14¢/kWh that SaskPower charges for electricity just 4¢ is to cover the actual electricity used. Most of the amount (10¢) is used to cover fixed costs for system maintenance, electricity demand, and distribution and transmission assets. 

So while we aren’t considering rebates or grants for rooftop solar systems, we will be seeking public input to help inform our customer generation plan. Our goal is to offer more options when it comes to purchasing, generating, storing and managing your electricity consumption. If you’d like to learn more please visit Net Metering (saskpower.com).

Our mission is to provide cost-effective, reliable and sustainable power for our customers and the communities we serve. Balancing the trade-offs and benefits of every supply option is key to delivering on that mission. To learn more about centralized and decentralized power, consider viewing our recent energy education series about microgrids: https://youtu.be/JYSM4HX1248?si=7tA6FsJnLRu4aKQg and to learn more about the environmental trade offs and impacts of power generation check out this video: https://youtu.be/mkGZyLEma7I?si=VKeVvU-8I2Z8uIj2.

Thanks for your follow up question. If two 300 MW small modular reactors are built the expected LCOE range is between $145 and $295/MWh for the energy produced by the combined 600 MW of generation. There are economies of scale with nuclear meaning that if one unit was built the range would be higher.

Thanks for engaging with us. Due to concerns around climate change, the energy landscape is changing around the world, as well as here in Saskatchewan.  This is challenging the conventional use of fossil fuels like coal and natural gas which emit greenhouse gases (“GHG”), like carbon dioxide.  Under current federal regulations, our GHG emissions must reach net-zero by 2050 or sooner.  As well, SaskPower must meet the growing need for power by people, businesses and industry. SaskPower is looking at all options to achieve this goal, while providing cost-effective, reliable, and sustainable power to our customers.  

Nuclear power produces zero greenhouse gas emissions and is available 24/7. Our analysis shows that nuclear power from SMRs is reliable, clean and cost-effective.  

Canada’s nuclear industry has a strong safety record which has been built on more than 70 years of innovation with safety and environmental protection at its core. Nuclear power plants have many layers of protection. If there’s ever an issue, many systems keep the plant safe. SMRs are an advancement in nuclear power technology. They have further layers of protection for human safety and the environment. 

Canada has a long history of safely storing high level radioactive waste. The licensing process for any nuclear activity in Canada must include a plan for waste management over the full operational lifecycle. In Canada, the Nuclear Waste Management Organization (NWMO) handles the implementation of the safe, long-term management of spent nuclear fuel and waste. Spent fuel will be stored at the facility while it cools. Then, it will be transported to a long-term storage facility developed by the NWMO. 

If you’d like to learn more about SaskPower’s SMR project as well as how nuclear waste is managed in Canada, please visit the links below.  

Planning for Nuclear Power (saskpower.com).  

Managing Nuclear Waste (saskpower.com) 

Home | The Nuclear Waste Management Organization (NWMO) 

Thanks for engaging with us! As of July 2024, the Levelized Cost of Electricity (LCOE) (before government subsidies) is: 

Wind: 55-80 $/MWh

Solar: 80-130 $/MWh

Natural Gas: 85-185 $/MWh

Imports: 70-190 $/MWh

Hydro: 220-295 $/MWh

Nuclear- SMR (two units): 145-295 $/MWh

Geothermal: 200-395 $/MWh

Biomass: 240-400 $/MWh

LCOE includes the costs to build a facility, the fuel to run it, staffing, maintenance, decommissioning and the price SaskPower would pay through a third-party power purchase agreement (PPA). While cost is one consideration when choosing supply options, factors such as supply option characteristics, federal regulations, customer expectations, innovation and electrification, also influence supply planning. That’s why it’s important that we keep a diverse mix of generation options, including baseload and intermittent generation options.

Wind and solar are renewable options that are lower cost and help reduce greenhouse gas emissions (GHGs). Wind and solar need to be complemented with dependable supply options such as natural gas, nuclear, etc. 

The assumed capacity factor for natural gas facilities is 85 per cent. However, future use is expected to see a lower capacity factor as low-cost energy from renewables is used more often. In the LCOE calculations, carbon tax only applies to natural gas. The low end of the range for the natural gas LCOE assumes carbon tax is returned to SaskPower for investment in assets and activities that support GHG emissions reduction. The high end assumes that carbon tax isn’t returned. CCS on natural gas is expected to be higher cost than unabated natural gas because the avoided carbon tax is outweighed by higher capital and operating costs.

The LCOE of imports is a large range because it depends on market factors like:

• the type of energy (non-emitting vs. emitting)
• the price structure (firm supply vs. variable market price)
• the availability (baseload vs. non-dispatchable)

LCOE for SMRs includes two units because nuclear generation requires significant fixed costs related to design, regulations and safety, and security. To take full advantage of the very low variable costs and to ensure the best value for SaskPower’s customers it’s advisable to build multiple units on one site. While the LCOE for SMRs is high compared to some other supply options, it’s worth noting the average facility lifespan for SMRs is 40-60 years. This is compared to 20-30 years for wind, solar, geothermal, biomass and natural gas.

Thanks for engaging with us. While SaskPower has had success in the past building and constructing projects, there are many advantages to using IPPs specifically for renewable projects. 

Experience

• There’s a mature market of renewable generation developers that focus on the business of renewable generation development. By taking an IPP model approach, SaskPower can leverage this market of developers and utilize their development experience. This ensures we get the best value projects for the province. 

Risks

• SaskPower can mitigate project risks and not manage these risks internally. 

Cost

• Through the IPP model approach, all developers compete in an open competition to secure a project. SaskPower can then choose the lowest-price project which has the most minimal impact on our customers in the province. 
• IPPs may also have access to certain tax benefits, credits, funding, and other programs. 

Engagement

• The IPP selection process includes requirements for Indigenous ownership that create opportunities for Indigenous companies to take part in generating power. This helps foster meaningful partnerships with the developers and Indigenous communities.
• Community engagement is very important to the process. Developers are vetted based on their plans to engage with Rightsholders, municipal authorities, landowners, surrounding communities and any other key stakeholders.

Hi there! Mass market customers (residential, small business, etc.) are forecast based on historic and predicted population, as well as other statistical and economic factors that are known to impact customer growth. Some examples are resource production forecasts, household size, and GDP. The industrial customer group is well understood and forecast on an individual basis with collaboration from the customers themselves as well as their respective SaskPower account manager.

Thanks for your question! We’re aware of discussions to create a stronger Western Canadian Grid. We recognize the importance of interconnections with our neighbours and are exploring opportunities to increase our interconnections with them. While interconnections have existed for decades, they’re becoming increasingly important today because:

• They enhance resiliency to power system vulnerability caused by climate-driven extreme weather by acting as a good back-up for emergency situations.
• They have the potential to increase flexibility by supporting the growth of intermittent renewable generation in our supply mix.
• They enable us to explore supply options over a larger geographical area and with additional partners, potentially resulting in a more advantageous position and lower overall costs for generation development compared to relying solely on in-province resources.
• They allow us to import low- or non-GHG emitting power.
• They can be used to earn revenue by exporting energy from Saskatchewan.

However, there are also challenges to creating a Western Canadian Grid. Some of those challenges include:

• Funding. The anticipated costs for establishing a Western Canadian Grid are on the order of billions of dollars, with funding sources remaining unclear.
• Timeline. It’s estimated it would take 10 years or longer to build a Western Canadian Grid. This is too long to help the transition from conventional coal that’s set to retire by 2030 due to federal regulations.
• Permitting. The approvals on interprovincial projects are complex and not guaranteed.
• Other jurisdictions. Interconnections can be expanded beyond a Western Canadian Grid, so we’d need to evaluate if a western grid provides advantages over other grid expansions (for example – into the U.S.).

We’re aware that on Nov. 8, 2023, Portland-based NuScale and Utah Associated Municipal Power Systems mutually decided to cancel the small modular reactor (SMR) project set to be built in Idaho, largely due to the availability of lower-cost generation sources such as unabated natural gas and coal. 

SaskPower has selected the GE Hitachi BWRX-300 reactor design in part due to this technology’s readiness for deployment, along with generation size, fuel type and cost. The BWRX is based on a proven design currently in operation around the world and was selected alongside Ontario Power Generation (OPG), who will deploy the BWRX first. 

We’re committed to ensuring we can continue to provide safe, reliable, cost-effective power to customers in the future. We’re collaborating with OPG as they’re an experienced nuclear operator with a recent track record of completing nuclear projects on time and on budget. They’re currently in the process of extending the life of a four-reactor nuclear power facility and have completed the refurbishment of one of the units well ahead of schedule and on budget.  

At the end of the day, SMRs will have to be cost-competitive with other sources of baseload, GHG emissions-free generation options, and make economic sense for Saskatchewan for us to proceed. Based on feasibility work done to date, SMRs have the potential to be a competitive option. If we decide to construct an SMR, two things will help mitigate cost overruns:

• The modularity aspect of SMRs in general. Modular in Small Modular Reactor, means some of the power plant can be built in a factory setting and assembled on site. This reduces the risk of construction cost overruns.
• Based on the completion of the same SMR design by Ontario Power Generation, SaskPower will work with OPG to better understand potential costs to inform our final investment decision in 2029 to build an SMR in Saskatchewan.

Hi there! We asked about specific supply options in our Stage 2 survey. You can find the full results of that survey in our Stage 2 What We Heard report here, but we’ve also included the ‘Support for Generation Options’ for nuclear here:

• 39.4% strongly support
• 25.8% somewhat support
• 10.7% somewhat oppose
• 14.8% strongly oppose
• 9.4% don’t know

These numbers largely align with other publicly available research, such as Environics Research’s 2023 ‘Public Attitudes to Nuclear Power’ research which can be found here.

Based on early estimates, electricity from the GE-Hitachi small modular reactor (SMR) could be cost competitive with alternative base load, zero emissions generation options available in the early to mid 2030s. Based on the completion of the same SMR design by Ontario Power Generation by the end of 2028, SaskPower will have highly reliable cost estimates by the time a final investment decision is made in 2029 to build an SMR in Saskatchewan.

Water availability is a key consideration for a the SMR project. We’re working closely with the Water Security Agency, who allocates water for things like power generation and irrigation projects, and we’re conducting our own water availability study to help ensure that wherever our final site is, there will be sufficient water for the life of the facility. 

Before receiving a licence to construct and a license to operate a nuclear power facility our lifecycle regulator, the Canadian Nuclear Safety Commission (CNSC), requires that plans for waste management and decommissioning are developed. Producing these types of plans prior to licencing is unique to the nuclear industry. Through the planning phase of the SMR development project we’re working towards developing these plans. If you’re interested in learning more, please visit the CNSC’s website.