Alberta’s coal-power phaseout will begin in 2018, industry association says

CALGARY ? The phase-out of coal-fired power generation in Alberta will start in 2018, not the mandated 2030 deadline, the president of the Coal Association of Canada said Thursday.

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Speaking at the launch of the campaign asking cabinet ministers to think about the outcome of the policy on coal-mining communities, Robin Campbell said coal-fired power companies would either scale-back their electricity production or turn off their plants earlier than expected to avoid carbon levies.

“The real date is going to be 2018,” Campbell said, adding that the phase-out of coal is “going to hurt small towns which are built around these mines which power plants.”

The provincial government is imposing a $20-per-tonne carbon tax on emissions beginning in 2017, rising to $30 in 2018. The government’s climate change policy also requires all coal-fired power plants to be emissions-free by 2030 or turn off.

Edmonton-based Capital Power Corp., however, has indicated it’ll continue operating its coal fleet until 2030 based on the province’s proposed global warming plan.

“Capital Power remains committed to operating in the Alberta market. We support government action on carbon pricing, and we are dealing with the Government of Alberta to aid effective implementation from the climate leadership plan,” spokesperson Michael Sheehan said.

Representatives using their company large power companies, TransAlta Corp. and Atco Ltd., weren’t immediately open to comment on whether or not they would cut back or shut down their facilities.

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University of Alberta economics professor Andrew Leach, who chaired the panel providing global warming policy recommendations towards the government, said the chance that some coal-fired power plants shut down early was flagged in his panel’s report.

“The change in policy in 2018 can change the economics of managing a coal-fired power plants,” Leach said. Still, he added, “you’re not going to see 6,000 megawatts drop off the market.”

The price of electricity in Alberta has fallen sharply during the period of recent times, but Campbell said the cost of retail electricity in the province would triple because of the imposition of the climate change policies and carbon taxes.

Leach disagreed with this price prediction and said, “Then why would they be shutting down their plants?”

Alberta Premier Rachel Notley also flatly rejected the coal association’s prediction that power prices would triple in Alberta.

“I think they’re making up numbers at this point,” she told reporters.

The Coal Association’s campaign, called Act for future years, can also be calling on the province to direct funds from potential subsidies for solar and wind power projects toward additional research in technologies like carbon capture and storage.

“We are not here to contest global warming or greenhouse gas emissions but we’re stating that coal has a future in Alberta,” Campbell said.

Notley said that the province would not direct any funds toward carbon capture and storage, that the New Democratic Party criticized when the previous Progressive Conservative government invested in it.

“There tend to be more fiscally responsible methods to reduce emissions from coal and that is to phase them out,” Notley said.

gmorgan@nationalpost.com

Twitter.com/geoffreymorgan