Saskatchewan Moves to Support Nuclear with Carbon Tax Changes
In a strategic move to bolster its clean electricity transition efforts, the Saskatchewan government has announced plans to channel carbon charges collected by SaskPower, the province’s electrical utility, into a nuclear energy investment fund. The primary objective is to facilitate the deployment of Saskatchewan’s inaugural small modular reactor, contributing to the province’s broader goal of achieving net-zero electricity by 2050.
The newly established fund is expected to play a pivotal role in financing the development and implementation of small modular reactors, offering a sustainable alternative in the province’s energy landscape. Additionally, the government asserts that a portion of the carbon charges will be allocated to cover clean electricity operating costs, a measure aimed at ensuring power rates remain affordable for consumers.
“Saskatchewan plans to transition to net-zero electricity by 2050,” highlighted Environment Minister Christine Tell. She emphasized that the latest changes are aligned with the province’s commitment to clean energy while simultaneously safeguarding the economic interests of households, businesses, industries, and farms.
Under the current framework, SaskPower collects carbon charges from ratepayers, with the provincial government retaining authority over the investment strategy for these funds. Notably, carbon charges from heavy emitters, aside from ratepayers, are slated to be directed into a dedicated technology fund. This fund will support projects focused on reducing, sequestering, and capturing emissions, further underlining Saskatchewan’s dedication to sustainable environmental practices.
To enhance transparency and accountability, the province has outlined its intention to meticulously track carbon revenues and expenses related to heavy emitters through the provincial budget. This move is poised to provide stakeholders with a clear understanding of the financial mechanisms driving Saskatchewan’s ambitious clean electricity goals.
In a related development, Saskatchewan confirmed last week that it will exempt electrical heat from carbon charges starting January 1. As part of this decision, eligible consumers can anticipate a substantial 60 per cent reduction on the rate rider portion of their electricity bill, translating to an average monthly saving of $21.
This comes after Premier Scott Moe’s announcement in March saying that Saskatchewan is devising ways of how to reduce greenhouse gas emissions from electricity generation, and one of the options is to bring small modular reactors (SMRs) to the province.
Information for this briefing was found via CBC and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
