… and Estevan (and SaskPower consumers) will suffer the consequences.
SaskPower is going to beef up its power transmission interconnect with the U.S. Southwest Power Pool (SPP), from the existing 150 megawatts to 650 megawatts. It’s a connection to 106 utilities across 14 states from North Dakota right down to include the Texas panhandle.
The idea is when they need power, and we have power to offer, we sell power into the SPP. And when we need power, we can buy it from the SPP. And for that privilege, we will pay a tariff of $52 million per year. More on that later.
This sort of interconnected grid is really important when it comes to intermittent power sources like wind and solar. Especially wind and solar. When I was typing up the initial story this morning, I checked on how Alberta’s power grid is doing. And at that moment, at 10:46 a.m., Alberta’s power grid was producing 188 megawatts out of a theoretical 2,389 megawatts of wind power connected to their grid, a measly 7.9 per cent. And this has happened numerous times this summer. I’m losing track, really. […]
Let me be clear on this – Alberta is one of the most energy-rich jurisdictions on the entire planet. It’s got more oil, natural gas and coal then almost every energy producer on the third rock from the sun, never mind wind and solar. And it is routinely, almost every single day, drawing on power production from its neighbours to keep its lights on.
And this is what I anticipate will happen in Saskatchewan. Sure, we could send power to North Dakota. But it’s more likely that we will be drawing power from the SPP, nearly all the time.
[..]
But what really got me thinking were these comments: “Over 50% of North Dakota’s power is coal fired. Carbon tax free,” said one. And that’s true. According to the U.S. Energy Information Administration, “In 2021, coal-fired power plants provided 57 per cent of North Dakota’s electricity generation, and wind energy accounted for 34 per cent, which was the sixth-highest share from wind power for any state.”
And this comment hit home, as most of my neighbours are either coal miners or work for SaskPower.
“And no jobs here in coal. Goodbye Estevan, you’re ruined.”
[…]
And that $52 million annual fee – which I must compliment the Leader Post on finding that out. I missed that. That’s a lot of bucks. Indeed, it’s much more than what SaskPower pays the provincial government in coal royalties via its coal purchases.
Wait, what?
You got that right. We pay next to nothing for coal – at least the coal on crown land, which is most of it.
Read it all and subscribe. Then, call your SaskParty MLA and remind them what happened to the Alberta PC’s.
Related: Judge revives Obama-era ban on coal sales from US lands
Just makes me wonder, FFS, when is the stoopid going hit the fan in the dumbest country on the planet?
We’re already paying for it in higher prices, taxes & fees. And it’s only going to get worse.
If I get this right (adjusts notes) … the US exports coal to Canada to export to China through the port in Vancouver, over 50% of North Dakota electricity comes from coal, but Saskatchewan has to pay $52 million per year for the benefit of not mining its own coal which is dirt cheap and plentiful.
My only question is … who was the guy who signed that deal, because my bridge (which generates carbon offsets, is eco-friendly, and does not emit CO2) is a deal looking better by the day.
It will be argued that the IS coal is not exported to Canada but is only in transit to China through the green energy loving BC
Peak energy ignorance means that under this agreement when the wind blows during a period of low demand Saskatchewan rate payers will enjoy the benefits of having to purchase that power while occasionally having to pay the other parties (in this agreement) to take the power in order to prevent overloading the necessarily continuous baseload. The fossil fuel gobblers of wind and solar (life cycle barely positive return on energy) contribute next to nothing but higher rates and virtually no less CO2 emissions / MWH. Wind and solar (on the grid) are the energy systems of the innumerate, the ignorant, or the evil (politicians qualify for all three categories).
Only $52M for a ‘Massive Carbon Leakage Interchange’. What a bargain. Go back to sleep you rubes.
Well, as long as it saves the sacred tree frog.
A little background :
-Boundary Dam units 1&2 were already extended beyond their lifespan and were low MW units (60MW, IIRC). Unit 4 is 150MW and also reached its lifespan. Units 5&6 are 300MW and might be worth refurbishing, if not for Trudeau. Ditto for Shand (1-300MW unit) and Poplar River (2-300MW units but designed for 2 additional units)
-Boundary Unit 3 is the carbon capture facility that cost well over a billion dollars. The CO2 produced is used for enhanced oil recovery in old fields. Long term contacts were signed with oil companies so that’s why it’s unlikely to be decommissioned.
– As for coal miners staying open for Unit 3 and Shand…good question that needs an answer.
If you’re the one paying the connection fee then you’re the one who’s expecting to be buying the power.
If the US side of the connect genuinely thought they would ever need Canada’s power (or that it would be available when they do need it) there would be no connection fee.
Those who signed the contracts will be compensated handsomely…Up and down the line…
Saskatchewan has build an absurd amount of wind farms, imo. Wind power is an absolute garbage power source. So there’s only 2 reasons to build. 1) politicians are stupid. 2) Saskpower is positioning for CO2 trading.
Saskatchewan is also building new natgas stations that are 300MW units to replace the retiring coal units -but- not enough to replace the entire loss of coal baseload power before the planned nuclear power builds in the 2030s. This gap was something some Saskpower employees were talking about. Joining the SPP may be the stop-gap measure until nuclear is on-line.
All of this is my opinion a speculation.
Politicians in addition to being stupid, are paid or will be paid by renewable energy related businesses to feed off of the public through. They are stupid enough to think the public doesn’t realize that.
I’ve visited both Grid Control (GCC) and the power trading floor at saskpower. There’s money to be made in trading if you connect with other grids. But, as with most things, there’s also risk.
I think the days of coal are over but natgas and nuclear plus Sask’s hydro plants will provide stable baseload power. Wind and solar are pointless for power, good only for virtue signalling and compliance with the Trudeau Liberal government’s stupid and destructive Green Plan.
We’ll see if Sask, or anywhere in this unserious country, can actually build a nuclear plant without being taken down by the greenies. I tend to doubt it.
Saskatchewan is now, arguably, the most conservative province in Canada. 100% federal Liberal and NDP free. Provincially, the NDP are a sad rump of a party. We also mine the highest grade uranium which we export. A couple of years back sask was rated the world’s best mining jurisdiction.
Chairman Moe and his Saskatchewan (Segregation) Party are dead to me but the people of the province are quite practical. Practical enough to overcome the inevitable fear campaign about nuclear? I give it a 50/50 chance.
If new nuclear power can’t be built here then I’d be surprised if it can be built anywhere in Canada, except Ontario (because they already have nuclear)
There is a snow ball’s chance in hell that any new nuclear will be built before 2050 if ever. Thinking otherwise is dreaming in Color as Rene Levesque used to say. There are too many anti groups with too many legislative tools and too many financial groups funding them and influencing too many spineless politicians to see any new build nukes in our or our children’s lifetimes.
Necessity may trump everything. Saskatchewan doesn’t need nuclear but if everything else becomes unaffordable due to the federal government then options will be limited.
We have a massive supplies of natgas and coal (for gassification) and uranium. But being in Canada under the thumb of Mon-TO-Van’s Trudeau is wrecking our economy. Personally, I’d rather separate from Canada but I’m pro-nuclear too (small modular reactors).
Necessity? Do you think that will stop the greenies? If there isn’t enough power to go around, we plebes will be expected to wear sweaters and take cold showers in the winter rather than endanger precious Gaia with any more of our filthy technology.
Plus, once the power grid becomes intermittent and unreliable, politicians gain the power to play kingmaker by getting their friends atop the inevitable lists of who gets the most / best / first power from the spotty grid. That will prove far juicier to politicians than making the grid run well again.
-There aren’t many greens in Saskatchewan. They know they’ll freeze in our -30 degrees Celsius winters just like the rest of us.
-The government owns the electricity and natgas companies so it would be political suicide to let things get to the mess we see in Europe and Britian
-Sask doesn’t need to import energy resources since we have oil, natgas, coal, hydro, refineries, adequate pipelines and uranium. Our problem is Trudeau but we really don’t need energy from the rest of Canada nor will citizens request permission from Ottawa to use our energy resources if your scenario plays out.
-“play kingmaker by getting their friends atop the inevitable lists of who gets the most / best / first power from the spotty grid”. I’m pretty sure that’s not how grids work and, again, it would be politically impossible due to pressure from voters.
You think higher of voters than I do. We live in a country that has elected Trudeau three times, remember?
Time for the Buffalo Party to make a big play for rural ridings (next election for sure, but any by-elections definitely). Hang this around their necks and know the numbers solid. Lay out what to show what a terrible deal this is and make them explain why they are doing it. Ask them how they are any different from Trudeau when they pull these shenanigans?
That’s Ontario level of energy stupid.
But not Newfoundland (Muskrat Falls) stupid so there is still some stupid to go.
In periods of high wind Saskatchewan will end up paying North Dakota et al to take the power.
And is the $52 million the cost of the interconnection? Or is it merely an administrative fee, with the interconnect cost yet to be announced.
Sorry I missed that it was $52 million per year
The article talks about Alberta having to import power. It’s because they did the same thing SK wants to do. This: https://financialpost.com/commodities/energy/alberta-strikes-1-36-billion-deal-with-coal-companies-as-part-of-plan-to-shut-down-plants-early
L – Sask. Party gov’t. mismanagement of a government owned utility, thus raising the cost of heating and electricity for residents, businesses, manufacturers, mining and agriculture.
All this to get coal generated electricity from another country, rather than using Sask. coal/labour.
That’s the virtue signalling hypocrisy, which is a trademark of Justin Trudeau’s Liberals/NDP!
This is idiocy. Clearly an opportunity for a would be Loyal Opposition Party to exploit, if there was one.
No one ever benefits from dependency on assets they don’t control.
Here in Alberta, most of our imported power is from BC. They are adopting the Quebec model.
Build a massive hydro-electric dam to power the short sighted a-holes next door.
Sorry to see Sask following us down the red lily lined path to energy poverty by buying US power.
https://twitter.com/ReliableAB/status/1559227527368957952?s=20&t=kaknDvLuukZ-bGbK_ts5zg
Like Kyoto or carbon taxes or any of the other retarded schemes all that happens is that the pollution is outsourced.
Liberals are incapable of understanding the concept of cause and effect.
Actually the Liberals do understand.
Climate change is about wealth redistribution not climate. Hence outsourcing industry to places like China, India, etc. is exactly what the Liberals want to do.
Now some businesses in the US understand that Turdeau wants to be a leader in the climate change battle, so they are happy to help Turdeau and make lots of money in the process, before Biden takes the US fully down the same road.
Why do think Biden, Pelosi, etc.are heavily invested in China?
The Alberta Electric System Operator website link is revealing.
http://ets.aeso.ca/ets_web/ip/Market/Reports/CSDReportServlet
Wind turbine installed nameplate capacity is 2389 MW. Actual generation is 52 MW
Wow
I think it’s time that prospective politicians have to pass some tests in basic physics, chemistry, medicine, weather, history and so on before they ever run for office. They are making major decisions regarding stuff they simply do not understand, not even a little bit. The ignorance is appalling. Even after multiple countries like the UK and Germany have gone down the renewable-energy path and now find themselves soon to be freezing in the dark, our leaders continue to make exactly the same choices as those European train wrecks. It’s all ideology rather than common sense and science.
Dan, Have you not heard? People aren’t required to pass tests anymore. Low/failing grades cause too much mental stress.