Saskatchewan’s government is planning to extend the life of the province’s coal plants before moving to nuclear power generation, says a letter from the Crown Investments Corporation Minister.

On June 18, Jeremy Harrison wrote to SaskPower employees that the decision will maintain jobs and meet growing demand, while keeping electricity affordable and reliable, The Canadian Press reports.

Harrison did not provide details on the costs of the plan or timelines, but wrote the province will explore the viability of adding carbon capture units.

“SaskPower will be life extending up to approximately 1500 megawatts of coal assets,” he wrote. “Other jurisdictions around the world are refurbishing coal plants that are many times that size.”

The province already operates a carbon capture unit at the Boundary Dam Power Station, which has sometimes struggled to meet emissions reduction targets.

SaskPower, the province’s electrical utility, operates three coal-fired plants and some units were scheduled to go offline in the coming years.

“I know that the hard-working teams in these facilities have been subject to considerable uncertainty,” Harrison wrote. 

“Saskatchewan people own our coal resource, which we are blessed with in enormous quantities. 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.”

SaskPower is planning to build a small modular nuclear reactor by the mid-2030s. The Crown corporation is studying the Estevan area, southeast of Regina, for a potential site to build the plant. 

In 2019, Saskatchewan signed a deal with Ottawa recognizing some coal units could run beyond the phaseout deadline of 2030. 

Harrison argued Saskatchewan has constitutional authority over electricity generation.

“We have also been clear that we do not recognize the legitimacy of the federal clean electricity regulations,” he said.

The regulations aim to limit emissions from provinces’ electricity grids. A tribunal struck by Saskatchewan found the rules would cost the province billions of dollars in economic growth and result in job losses. 

The federal environment ministry did not immediately respond to a request for comment.

Harrison wrote Saskatchewan still plans to meet net-zero targets by 2050. Wind and solar energy are also part of the province’s electricity mix, he added.

“Saskatchewan is going to be realistic in not compromising the reliability, affordability and security of the power grid when we are already making such significant contributions to environmental sustainability,” he wrote. “Other announcements will be coming in due course.”

The federal government’s National Inventory Report says while Saskatchewan’s emissions have fallen over the last 10 years, it’s Canada’s fourth-highest emitter. 

A Supreme Court of Canada ruling of carbon pricing found Ottawa has jurisdiction over regulating pollution. In March, Prime Minister Mark Carney scrapped the consumer carbon price but kept industrial levies. 

This report by The Canadian Press was first published June 18, 2025.