Saskatchewan's Coal Revival: A Double-Edged Sword for Canada's Energy Future

On June 18, 2025, Crown Investments Corporation Minister Jeremy Harrison announced a seismic shift in Saskatchewan's energy policy. SaskPower would be rebuilding its entire coal-fired power generation fleet, including the Boundary Dam plant, which had been scheduled for closure in the coming years. This decision, while providing immediate relief to workers and communities dependent on coal, sets the stage for a complex interplay between provincial autonomy, federal regulations, and the broader energy landscape of Canada.

The Immediate Impact: Job Security and Community Relief

For eight years, members of Local Union 7606 in Estevan, Saskatchewan, have been fighting to maintain their jobs at the Westmoreland Mine. The mine feeds the Boundary Dam plant, operated by SaskPower, which is currently the only commercially operating coal-fired power plant with carbon capture and storage (CCS) technology in North America. The announcement by Minister Harrison brought a sigh of relief to these workers, who had been living with the uncertainty of potential job loss. Financial Secretary Ashley Johnson and International Auditor/Teller Jody Dukart, along with the entire local union, welcomed the news as a victory for their membership and the community.

"For years, we've been told about transitioning from coal, but it's never happened," said Dukart. "The weather here can be minus 50 degrees sometimes. How is anyone going to survive if there's no coal and nothing to transition to? This is a huge victory for our membership and for everyone in the community."

The Constitutional Battle: Federal vs. Provincial Jurisdiction

The decision to extend the life of coal-fired power generation in Saskatchewan comes at a time when federal regulations require that all conventional coal-fired power generation shut down by 2030. Minister Harrison asserted the Saskatchewan government’s position that, constitutionally, electrical power generation is in the jurisdiction of the provinces and the federal government has no standing on the matter. This jurisdictional conflict could lead to legal challenges and policy tensions between the federal and provincial governments.

The Environmental and Climate Concerns

The continued use of coal-fired power generation contradicts Canada's national emissions reduction target under the Paris Agreement, which aims for a 40-45% reduction below 2005 levels by 2030. This could lead to increased carbon emissions and environmental degradation. The federal government has stated that "the continued mining and use of coal for energy production anywhere in the world is not environmentally sustainable and does not align with the Government of Canada’s commitments, both domestically and internationally, with respect to combatting climate change."

The Economic and Social Considerations

The provincial government's decision to extend the life of coal-fired plants is partly driven by economic and social considerations. Jeremy Harrison, the minister responsible for SaskPower, highlighted that "Saskatchewan people own our coal resource, which we are blessed with in enormous quantities. We know that we will have access to it. The certainty and security of coal means that it will continue as a pillar of our electrical generation system as we bridge to a nuclear future powered by Saskatchewan uranium." This decision could save jobs and support communities that rely on coal, but it may also delay the transition to cleaner energy sources.

The Energy Security and Reliability

The provincial government has emphasized the importance of reliable and affordable power generation, stating that "our priorities for SaskPower going forward will be reliable and affordable power generation along with energy security." Extending the life of coal-fired plants could provide a stable source of baseload power, but it may also limit the development of renewable energy sources, which are essential for achieving a net-zero electricity grid by 2050.

The Role of Carbon Capture and Storage (CCS)

SaskPower's Boundary Dam Unit 3 is the world's first fully-integrated and full-chain post-combustion CCS facility on a coal-fired power plant. The provincial government's decision to extend the life of coal-fired plants could encourage further investment in CCS technologies, which can help reduce emissions from existing fossil-fuelled power plants. However, the federal government's regulations require that units incorporating CCS technology meet specific milestones, which could create additional challenges for the provincial government's plans.

The Broader Energy Policy Landscape

The federal government's stance on coal-fired power generation and the provincial government's decision to extend the life of these plants could have significant implications for the broader energy policy landscape in Canada. The jurisdictional conflict, environmental concerns, and economic considerations will likely shape the future of energy policy in the country. The outcomes of any legal challenges or policy negotiations between the federal and provincial governments will be crucial in determining the direction of Canada's energy future.

In conclusion, while the decision to extend the life of coal-fired power generation in Saskatchewan has potential economic benefits such as job preservation, energy security, and cost-effectiveness, it also presents significant drawbacks related to environmental and climate concerns, regulatory and policy conflicts, and investment and innovation risks. The broader energy policy landscape in Canada will likely be shaped by these competing priorities and the outcomes of any legal challenges or policy negotiations between the federal and provincial governments.