Peak coal may be coming

By Globe and Mail


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The price of oil isnÂ’t the only hydrocarbon going through the roof. Check out thermal coal prices to see how dependent economic growth has become on burning increasing amounts of fossil fuels.

Prices of Newcastle coal, the Asian coal price benchmark, are poised to rise by as much as 30 per cent this year, approaching the peak levels seen in 2008.

It is no surprise the countries driving global coal demand through the roof are the same countries pushing global crude demand. Find the fastest growing economies, and you will find where demand for oil and coal are the strongest.

ChinaÂ’s coal consumption is expected to rise by another 10 per cent this year, propelled by strong economic growth, the soaring prices of diesel fuel and the fact water levels at most of the countryÂ’s hydroelectric sites are well below normal due to the severe drought this winter.

Demand in India, where power blackouts are still the norm and where 40 per cent of the countryÂ’s 1.2 billion people still havenÂ’t been hooked up to a grid, is expected to grow by more than 20 per cent this year.

It is good news for coal prices but the only problem is whether production can keep pace. Sound familiar?

ChinaÂ’s coal industry already accounts for more than 40 per cent of world production with less than 15 per cent of the planetÂ’s coal reserves. This is a rate of resource extraction that U.S. coal companies can only dream about.

Even so, domestic mine production in China lags runaway demand growth, forcing the worldÂ’s largest coal burner to turn to more foreign suppliers such as Australia. Last year, the Chinese economy burnt a staggering 3.2 billion metric tonnes of the stuff.

This is already a huge challenge to ChinaÂ’s railway system that is clogged with hauling billions of tonnes of coal from increasingly distant mines in the remote western regions of the country to the industrial heartland in the east.

But the Chinese economy faces an even more daunting challenge to its coal consumption than transportation logistics. Domestic coal production is rapidly approaching what even the Chinese government acknowledges to be a national production peak.

At the current extraction rate, China could hit that production peak as early as 2015. Once there, most estimates show a sharp drop off in the countryÂ’s coal production beginning around 2020. This is why Beijing is considering capping domestic coal production, fearing the country is depleting its remaining coal reserves far too quickly to sustain future economic growth.

This policy shift has sent Chinese coal companies scouring the world looking for new coal reserves. They have already spent $21 billion on overseas coal acquisitions.

As the largest coal producing country starts thinking about conserving its remaining coal reserves, you wonder just how far off we are from a world of peak coal?

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Sask. Party pledges 10% rebate on SaskPower electricity bills

SaskPower 10% Electricity Rebate promises one-year bill relief for households, farms, businesses, hospitals, schools, and universities in Saskatchewan, boosting affordability amid COVID-19, offsetting rate hikes, and countering carbon tax impacts under Scott Moe's plan.

 

Key Points

One-year 10% SaskPower rebate lowering bills for residents, farms, and institutions, funded by general revenue.

✅ Applies automatically to all customers for 12 months from Dec 2020.

✅ Average savings: $215 residential; $845 farm; broad sector coverage.

✅ Cost $261.6M, paid from the general revenue fund; separate from carbon tax.

 

Saskatchewan Party leader Scott Moe says SaskPower customers can expect a one-year, 10 per cent rebate on electricity if they are elected government.

Moe said the pledge aims to make life more affordable for people, including through lower electricity rates initiatives seen in other provinces. The rate would apply to everyone, including residential customers, farmers, businesses, hospitals, schools and universities.

The plan, which would cost government $261.6 million, expects to save the average residential customer $215 over the course of the year and the average farm customer $845.  

“This is a very equitable way to ensure that we are not only providing that opportunity for those dollars to go back into our economy and foster the economic recovery that we are working towards here, in Saskatchewan, across Canada and around the globe, but it also speaks to the affordability for our Saskatchewan families, reducing the dollars a day off to pay for their for their power bill,” Moe said.

The rebate would be applied automatically to all SaskPower bills for 12 months, starting in December 2020. 

Moe said residential customers who are net metering and generating their own power, such as solar power, would receive a $215 rebate over the 12-month period, which is the equivalent of the average residential rebate.

The $261.6 million in costs would be covered by the government’s general revenue fund.   

The Saskatchewan NDP said the proposed reduction is "a big change in direction from the Sask. Party’s long history of making life more expensive for Saskatchewan families." and recently took aim at a SaskPower rate hike approval as part of that critique.

Trent Wotherspoon, NDP candidate for Regina Rosemont and former finance critic, called the pledge criticized the one year time frame and said Saskatchewan people need long term, reliable affordability, noting that the Ontario-Quebec hydro deal has not reduced hydro bills for consumers. Something, he said, is reflected in the NDP plan.

“We've already brought about announcements that bring about affordability, such as the break on SGI auto insurance that'll happen, year after year after year, affordable childcare which has been already announced and committed to things like a decent minimum wage instead of having the lowest minimum wage in Canada,” Wotherspoon said.

The NDP pointed out SaskPower bills have increased by 57 per cent since 2007 for families with an average household income of $75,000, while Nova Scotia's 14% rate hike was recently approved by its regulator.

It said the average bill for such household was $901 in 2007-08 and is now $1,418 in 2019-20, while in neighbouring provinces Manitoba rate increases of 2.5 per cent annually have also been proposed for three years.

"This is on top of the PST increases that the Sask. Party put on everyday families – costing them more than $700 a year," the NDP said.

Moe took aim at the federal Liberal government’s carbon tax, citing concerns that electricity prices could soar under national policies.

He said if the Saskatchewan government wins its court fight against Ottawa, all SaskPower customers can expect to save an additional $150 million per year, and he questioned the federal 2035 net-zero electricity grid target in that context.

“As it stands right now, the Trudeau government plans to raise the carbon tax from $30 to $40 a tonne on Jan. 1,” Moe said. “Trudeau plans to raise taxes and your SaskPower bill, in the middle of a pandemic.  The Saskatchewan Party will give you a break by cutting your power bill.”

 

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Updated Germany hydrogen strategy sees heavy reliance on imported fuel

Germany Hydrogen Import Strategy outlines reliance on green hydrogen imports, expanded electrolysis capacity, IPCEI-funded pipelines, and industrial decarbonization for steel and chemicals to reach climate-neutral goals by 2045, meeting 2030 demand of 95-130 TWh.

 

Key Points

A plan to import 50-70% of hydrogen by 2030, backing green hydrogen, electrolysis, pipelines, and decarbonization.

✅ Imports cover 50-70% of 2030 hydrogen demand

✅ 10 GW electrolysis target with state aid and IPCEI

✅ 1,800 km H2 pipelines to link hubs by 2030

 

Germany will have to import up to 70% of its hydrogen demand in the future as Europe's largest economy aims to become climate-neutral by 2045, an updated government strategy published on Wednesday showed.

The German cabinet approved a new hydrogen strategy, setting guidelines for hydrogen production, transport infrastructure and market plans.

Germany is seeking to expand reliance on hydrogen as a future energy source to bolster energy resilience and cut greenhouse emissions for highly polluting industrial sectors that cannot be electrified such as steel and chemicals and cut dependency on imported fossil fuel.

Produced using solar and wind power, green hydrogen is a pillar of Berlin's plan to build a sustainable electric planet and transition away from fossil fuels.

But even with doubling the country's domestic electrolysis capacity target for 2030 to at least 10 gigawatts (GW), Germany will need to import around 50% to 70% of its hydrogen demand, forecast at 95 to 130 TWh in 2030, the strategy showed.

"A domestic supply that fully covers demand does not make economic sense or serve the transformation processes resulting from the energy transition and the broader global energy transition overall," the document said.

The strategy underscores the importance of diversifying future hydrogen sources, including potential partners such as Canada's clean hydrogen sector, but the government is working on a separate strategy for hydrogen imports whose exact date is not clear, a spokesperson for the economy ministry said.

"Instead of relying on domestic potential for the production of green hydrogen, the federal government's strategy is primarily aimed at imports by ship," Simone Peter, the head of Germany's renewable energy association, said.

Under the strategy, state aid is expected to be approved for around 2.5 GW of electrolysis projects in Germany this year and the government will earmark 700 million euros ($775 million) for hydrogen research to optimise production methods, research minister Bettina Stark-Watzinger said.

But Germany's limited renewable energy space will make it heavily dependent on imported hydrogen from emerging export hubs such as Abu Dhabi hydrogen exports gaining scale, experts say.

"Germany is a densely populated country. We simply need space for wind and photovoltaic to be able to produce the hydrogen," Philipp Heilmaier, an energy transition researcher at Germany energy agency, told Reuters.

The strategy allows the usage of hydrogen produced through fossil energy sources preferably if the carbon is split off, but said direct government subsidies would be limited to green hydrogen.

Funds for launching a hydrogen network with more than 1,800 km of pipelines in Germany are expected to flow by 2027/2028 through the bloc's Important Projects of Common European Interest (IPCEI) financing scheme, as the EU plans to double electricity use by 2050 could raise future demand, with the goal of connecting all major generation, import and storage centres to customers by 2030.

Transport Minister Volker Wissing said his ministry was working on plans for a network of hydrogen filling stations and for renewable fuel subsidies.

Environmental groups said the strategy lacked binding sustainability criteria and restriction on using hydrogen for sectors that cannot be electrified instead of using it for private heating or in cars, calling for a plan to eventually phase-out blue hydrogen which is produced from natural gas.

Germany has already signed several hydrogen cooperation agreements with countries such as clean energy partnership with Canada and Norway, United Arab Emirates and Australia.

 

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Barakah Unit 1 reaches 100% power as it steps closer to commercial operations, due to begin early 2021

Barakah Unit 1 100 Percent Power signals the APR-1400 reactor delivering 1400MW of clean baseload electricity to the UAE grid, advancing decarbonisation, reliability, and Power Ascension Testing milestones ahead of commercial operations in early 2021.

 

Key Points

The milestone where Unit 1 reaches full 1400MW output to the UAE grid, providing clean, reliable baseload electricity.

✅ Delivers 1400MW from a single generator to the UAE grid

✅ Enables clean, reliable baseload power with zero operational emissions

✅ Completes key Power Ascension Testing before commercial operations

 

The Emirates Nuclear Energy Corporation, ENEC, has announced that its operating and maintenance subsidiary, Nawah Energy Company, Nawah, has successfully achieved 100% of the rated reactor power capacity for Unit 1 of the Barakah Nuclear Energy Plant. This major milestone, seen as a crucial step in Abu Dhabi towards completion, brings the Barakah plant one step closer to commencing commercial operations, scheduled in early 2021.

100% power means that Unit 1 is generating 1400MW of electricity from a single generator connected to the UAE grid for distribution. This milestone makes the Unit 1 generator the largest single source of electricity in the UAE.

The Barakah Nuclear Energy Plant is the largest source of clean baseload electricity in the country, capable of providing constant and reliable power in a sustainable manner around the clock. This significant achievement accelerates the decarbonisation of the UAE power sector, while also supporting the diversification of the Nation’s energy portfolio as it transitions to cleaner electricity sources, similar to the steady development in China of nuclear energy programs now underway.

The accomplishment follows shortly after the UAE’s celebration of its 49th National Day, providing a strong example of the country’s progress as it continues to advance towards a sustainable, clean, secure and prosperous future, having made the UAE the first Arab nation to open a nuclear plant as it charts this path. As the Nation looks towards the next 50 years of achievements, the Barakah plant will generate up to 25 percent of the country’s electricity, while also acting as a catalyst of the clean carbon future of the Nation.

Mohamed Ibrahim Al Hammadi, Chief Executive Officer of ENEC said: "We are proud to deliver on our commitment to power the growth of the UAE with safe, clean and abundant electricity. Unit 1 marks a new era for the power sector and the future of the clean carbon economy of the Nation, with the largest source of electricity now being generated without any emissions. I am proud of our talented UAE Nationals, working alongside international experts who are working to deliver this clean electricity to the Nation, in line with the highest standards of safety, security and quality." Nawah is responsible for operating Unit 1 and has been responsible for safely and steadily raising the power levels since it commenced the start-up process in July, and connection to the grid in August.

Achieving 100% power is one of the final steps of the Power Ascension Testing (PAT) phase of the start-up process for Unit 1. Nawah’s highly skilled and certified nuclear operators will carry out a series of tests before the reactor is safely shut down in preparation for the Check Outage. During this period, the Unit 1 systems will be carefully examined, and any planned or corrective maintenance will be performed to maintain its safety, reliability and efficiency prior to the commencement of commercial operations.

Ali Al Hammadi, Chief Executive Officer of Nawah, said: "This is a key achievement for the UAE, as we safely work through the start-up process for Unit 1 of the Barakah plant. Successfully reaching 100% of the rated power capacity in a safe and controlled manner, undertaken by our highly trained and certified nuclear operators, demonstrates our commitment to safe, secure and sustainable operations as we now advance towards our final maintenance activities and prepare for commercial operations in 2021." The Power Ascension Testing of Unit 1 is overseen by the independent national regulator – the Federal Authority for Nuclear Regulation (FANR), which has conducted 287 inspections since the start of Barakah’s development. These independent reviews have been conducted alongside more than 40 assessments and peer reviews by the International Atomic Energy Agency, IAEA, and World Association of Nuclear Operators, WANO, reflecting milestones at nuclear projects worldwide that benchmark safety and performance.

This is an important milestone for the commercial performance of the Barakah plant. Barakah One Company, ENEC’s subsidiary in charge of the financial and commercial activities of the Barakah project signed a Power Purchase Agreement, PPA, with the Emirates Water and Electricity Company, EWEC, in 2016 to purchase all of the electricity generated at the plant for the next 60 years. Electricity produced at Barakah feeds into the national grid in the same manner as other power plants, flowing to homes and business across the country.

This milestone has been safely achieved despite the challenges of COVID-19. Since the beginning of the global pandemic, ENEC, and subsidiaries Nawah and Barakah One Company, along with companies that form Team Korea, including Korea Hydro & Nuclear Power, with KHNP’s work in Bulgaria illustrating its global role, have worked closely together, in line with all national and local health authority guidelines, to ensure the highest standards for health and safety are maintained for those working on the project. ENEC and Nawah’s robust business continuity plans were activated, alongside comprehensive COVID-19 prevention and management measures, including access control, rigorous testing, and waste water sampling, to support health and wellbeing.

The Barakah Nuclear Energy Plant, located in the Al Dhafra region of the Emirate of Abu Dhabi, is one of the largest nuclear energy new build projects in the world, with four APR-1400 units. Construction of the plant began in 2012 and has progressed steadily ever since. Construction of Units 3 and 4 are in the final stages with 93 percent and 87 percent complete respectively, benefitting from the experience and lessons learned during the construction of Units 1 and 2, while the construction of the Barakah Plant as a whole is now more than 95 percent complete.

Once the four reactors are online, Barakah Plant will deliver clean, efficient and reliable electricity to the UAE grid for decades to come, providing around 25 percent of the country’s electricity and, as other nations like Bangladesh expand with IAEA assistance, reinforcing global decarbonisation efforts, preventing the release of up to 21 million tons of carbon emissions annually – the equivalent of removing 3.2 million cars off the roads each year.

 

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Australia stuck in the middle of the US and China as tensions rise

Manus Island Naval Base strengthens US-Australia-PNG cooperation at Lombrum, near the South China Sea, bolstering sovereignty, maritime rights, and Pacific security amid APEC talks, infrastructure investment, and Belt and Road competition.

 

Key Points

A US-Australia-PNG facility at Lombrum to bolster Pacific security and protect maritime rights across the region.

✅ Shared by US, Australia, and PNG at Lombrum on Manus Island

✅ Near South China Sea, reinforcing maritime security and access

✅ Counters opaque lending, aligns with free trade and infrastructure

 

Scott Morrison has caught himself bang in the middle of escalating tensions between the United States and China.

The US and Australia will share a naval base in the north end of Papua New Guinea on Manus Island, creating another key staging point close to the contested South China Sea.

“The United States will partner with Papua New Guinea and Australia on their joint initiative at Lombrum Naval Base,” US Vice President Mike Pence said.

“We will work with these two nations to protect sovereignty and maritime rights in the Pacific Islands. ”

At an Asia Pacific Economic Cooperation meeting in Port Moresby on Saturday, Mr Morrison urged nations to embrace free trade and avoid “unsustainable debt”, as the Philippines' clean energy commitment also featured in discussions.

He confirmed the US and Australia will share an expanded naval base on Manus Island, as the US ramped up rhetoric against China.

Mr Pence quoted President Donald Trump in his speech following Chinese President Xi Jinping, even as a Biden energy agenda is seen by some as better for Canada.

“We have great respect for President Xi and respect for China. But in the president’s words, China’s taken advantage of the United States for many, many years,” he said.

“And those days are over.”

His speech was met with stony silence from the Chinese delegation, after President Xi had reassured leaders his Belt and Road Initiative was not a debt trap.

China has also been at loggerheads with the United States over its territorial ambitions in the Pacific, encapsulated by Xi’s Belt and Road Initiative.

Unveiled in 2013, the Belt and Road initiative aims to bolster a sprawling network of land and sea links with Southeast Asia, Central Asia, the Middle East, Europe and Africa.

China’s efforts to win friends in the resource-rich Pacific have been watched warily by the traditionally influential powers in the region — Australia and the United States.

“It is not designed to serve any hidden geopolitical agenda,” President Xi said on Saturday.

“Nor is it a trap, as some people have labelled it.”

But Mr Pence said loans to developing countries were too often opaque and encouraged nations to look to the US instead of China.

“Too often they come with strings attached and lead to staggering debt,” he said in his speech.

“Do not accept foreign debt that could compromise your sovereignty.

“Just like America, always put your country first.”

Mr Morrison committed Australia to look to the Pacific nations and on Sunday he will host an informal BBQ with Pacific leaders, amid domestic moves like Western Australia's electricity bill credit for households.

He also announced a joint partnership with Japan and the US to fund infrastructure around the region, while at home debates over an electricity market overhaul continue.

On the back of Mr Morrison’s defence of free trade at the summit, Australian Trade Minister Simon Birmingham said he was confident the US was interested in an open trading environment in the long run, with parallel discussions such as a U.S.-Canada energy partnership underscoring regional economic ties.

Australia is hoping the US will, in the end, take a similar approach to its trade dispute with China as it did with its tariff threats against Mexico and Canada, as cross-border negotiations like the Columbia River Treaty continue to shape U.S.-Canada ties.

“Ultimately, they laid down arms, they walked away from threats, and they struck a new trade deal that ensures trade continues in that North American bloc,” Mr Birmingham told ABC TV on Sunday.

“We hope the same will happen in relation to China.”

Four countries including the US have signed up to an effort to bring electricity to 70 per cent of Papua New Guinea’s people by 2030.

Australia, Japan, the US and New Zealand on Sunday signed an agreement to work with Papua New Guinea’s government on electrification.

It’s the latest sign of great power rivalry in the South Pacific, where China is vying with the US and its allies for influence.

 

 

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A resilient Germany is weathering the energy crunch

German Energy Price Brakes harness price signals in a market-based policy, cutting gas consumption, preserving industrial output, and supporting CO2 reduction, showcasing Germany's resilience and adaptation while protecting households and businesses across Europe.

 

Key Points

Fixed-amount subsidies preserving price signals to curb gas use, shield consumers, and sustain industrial output.

✅ Maintains incentives via market-based price signals

✅ Cuts gas consumption without distorting EU markets

✅ Protects households and industry while curbing CO2

 

German industry and society are once again proving much more resilient and adaptable than certain people feared. Horror scenarios of a dangerous energy rationing or a massive slump in our economy have often been bandied about. But we are nowhere near that. With a challenging year just behind us, this is good news — not only for Germany, but also for Europe, where France-Germany energy cooperation has strengthened solidarity.

Companies and households reacted swiftly to the sharp increases in energy prices, in line with momentum in the global energy transition seen across markets. They installed more efficient heating or production facilities, switched to alternatives and imported intermediate products. The results are encouraging: German households and businesses have reduced gas consumption significantly, despite recent cold weather. From the start of the war in Ukraine to mid-December industrial gas consumption in Germany was (temperature-adjusted) around 20 per cent lower than the average level for the preceding three years. Even if some firms have cut back production, especially in energy-intensive sectors, industrial output as a whole has only fallen by about 1 per cent since the start of 2022. Added to this, in a survey released by the Ifo institute in November, over a third of German companies saw the potential to reduce gas consumption further without endangering output.

Instead of imposing excessive laws and regulations, we have relied on price signals and the prudence of market participants to create the right incentives and reduce gas consumption, as falling costs like record-low solar power prices continue to reinforce those signals across sectors.

We will follow this approach in coming months, when energy savings will remain important, even as the EU electricity outlook anticipates sharply higher demand by 2050. Our latest relief measures will not distort price signals. To this end, the Bundestag approved gas and electricity price brakes in its final session in 2022. They are designed to function without any intervention in markets or prices. This system will pay out a fixed amount relative to previous years’ consumption and the current difference to a reference price — regardless of current consumption.

Energy price brakes are the main component of Germany’s “protective shield”, which makes up to €200bn available for measures in 2022 to 2024. Seen in relation to the German economy’s size, its past heavy reliance on Russian energy imports and the fact that the measures will expire in 2024, these are balanced and expedient mechanisms. In contrast to instruments used in other countries, our new arrangements will not affect the price formation process driven by supply and demand, or on incentives to save gas. Companies and households will continue to save the full market price when they reduce consumption by a unit of gas or electricity. In this way, the price brakes also avoid the creation of additional demand for gas at the expense of consumers in other European countries, even as Europe’s Big Oil turning electric signals broader structural shifts in energy markets. No one need fear that competition will be distorted or that gas will be bought up. Indeed, a recent IMF working paper on cushioning the impact of high energy prices on households explicitly praises the German energy price brakes.

Current developments confirm the effectiveness of a market-based approach — and show that we should also rely on price signals when it comes to reducing CO₂ emissions, as suggested by IEA CO2 trends in recent years. Last year, households and companies had only a few weeks to adapt, yet we have already seen a strong response. The effect of CO₂ prices can be even stronger, as adaptation is possible over a much longer time and they additionally affect expectations and long-term decisions. Regulatory interventions and subsidy schemes, even if well targeted, cannot compete with market co-ordination and incentives that support individual decision-making and promote innovation.

Europe and Germany can weather this crisis without a collapse in industrial production. We also have an opportunity to deal efficiently with the move to climate neutrality, aligned with Germany’s hydrogen strategy for imported low-carbon fuels. In both cases, we should have confidence in price signals as well as in the power of people and business to innovate and adapt.

 

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NDP takes aim at approval of SaskPower 8 per cent rate hike

SaskPower Rate Hike 2022-2023 signals higher electricity rates in Saskatchewan as natural gas costs surge; the Rate Review Panel approved increases, affecting residential utility bills amid affordability concerns and government energy policy shifts.

 

Key Points

An 8% SaskPower electricity rate increase split 4% in Sept 2022 and 4% in Apr 2023, driven by natural gas costs.

✅ 4% increase Sept 1, 2022; +4% on Apr 1, 2023

✅ Panel-approved amid natural gas price surge and higher fuel costs

✅ Avg residential bill up about $5 per step; affordability concerns

 

The NDP Opposition is condemning the provincial government’s decision to approve the Saskatchewan Rate Review Panel’s recommendation to increase SaskPower’s rates for the first time since 2018, despite a recent 10% rebate pledge by the Sask. Party.

The Crown electrical utility’s rates will increase four per cent this fall, and another four per cent in 2023, a trajectory comparable to BC Hydro increases over two years. According to a government news release issued Thursday, the new rates will result in an average increase of approximately $5 on residential customers’ bills starting on Sept. 1, 2022, and an additional $5 on April 1, 2023.

“The decision to increase rates is not taken lightly and came after a thorough review by the independent Saskatchewan Rate Review Panel,” Minister Responsible for SaskPower Don Morgan said in a news release, amid Nova Scotia’s 14% hike this year. “World events have caused a significant rise in the price of natural gas, and with 42 per cent of Saskatchewan’s electricity coming from natural gas-fueled facilities, SaskPower requires additional revenue to maintain reliable operations.”

But NDP SaskPower critic Aleana Young says the rate hike is coming just as businesses and industries are struggling in an “affordability crisis,” even as Manitoba Hydro scales back a planned increase next year.

She called the announcement of an eight per cent increase in power bills on a summer day before the long weekend “a cowardly move” by the premier and his cabinet, amid comparable changes such as Manitoba’s 2.5% annual hikes now proposed.

“Not to mention the Sask. Party plans to hike natural gas rates by 17% just days from now,” said Young in a news release issued Friday, as Manitoba rate hearings get underway nearby. “If Scott Moe thinks his choices — to not provide Saskatchewan families any affordability relief, to hike taxes and fees, then compound those costs with utility rate hikes — are defensible, he should have the courage to get out of his closed-door meetings and explain himself to the people of this province.”

The province noted natural gas is the largest generation source in SaskPower’s fleet. As federal regulations require the elimination of conventional coal generation in Canada by 2030, SaskPower’s reliance on natural gas generation is expected to grow, with experts in Alberta warning of soaring gas and power prices in the region. Fuel and Purchased Power expense increases are largely driven by increased natural gas prices, and SaskPower’s fuel and purchased power expense is expected to increase from $715 million in 2020-21 to $1.069 billion in 2023-24. This represents a 50 per cent increase in fuel and purchased power expense over three years.

“In the four years since our last increase SaskPower has worked to find internal efficiencies, but at this time we require additional funding to continue to provide reliable and sustainable power,” SaskPower president & CEO Rupen Pandya said in the release “We will continue to be transparent about our rate strategy and the need for regular, moderate increases.”

 

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