Alberta
Alberta supports the development of Small Modular Nuclear Reactors
Alberta signs small modular nuclear reactor MOU
Alberta has signed a memorandum of understanding (MOU) with New Brunswick, Ontario and Saskatchewan to support the development of small modular nuclear reactors (SMRs).
Premier Jason Kenney signed the MOU, previously signed by the three other provinces, on April 14. He joined New Brunswick Premier Blaine Higgs, Ontario Premier Doug Ford and Saskatchewan Premier Scott Moe at a virtual event where the premiers shared the findings of a study that examined the feasibility of SMRs in Canada.
“Alberta has always been committed to clean, affordable energy. Small modular reactors are an exciting new technology that could be used in the future to significantly cut greenhouse gas emissions, for example by generating power for Canadian oilsands producers. Nuclear is the cleanest form of electricity production, and with SMRs is now more affordable and scalable for industrial use. We are excited to be part of this group that will help develop Canadian SMR technology.”
“Today’s announcement confirms the commitment of our provinces to advancing SMRs as a clean energy option, leveraging the strength and knowledge of each of our jurisdictions. This study confirms the feasibility of small modular reactors in Canada and outlines a path forward to deploy this new clean, safe, reliable and competitively priced power. This new technology will help attract investment, create high-skilled jobs and contribute to our growing economy.”
“Our government believes the best way to ensure that Canada becomes a leader in advanced small modular reactor development and deployment is through continued engagement and partnerships. New Brunswick has already attracted two tremendous vendors in ARC Clean Energy Canada and Moltex Energy who are now developing their capacity and generating local economic development in the province. New Brunswick is well-positioned to be a world leader in the SMR field.”
“It is important that our provinces take these next steps together to continue leading the development of cutting-edge small modular reactors for the benefit of future generations. Ontario is home to a world-class nuclear industry, which we will leverage as we continue our critical work on this innovative technology in order to provide affordable, reliable, safe and clean energy while unlocking tremendous economic potential across the country.”
With the addition of Alberta to the MOU, all provinces involved have agreed to collaborate on the advancement of SMRs as a clean energy option to address climate change and regional energy demands while supporting economic growth and innovation.
The SMR Feasibility Study, formally requested as part of the MOU in December 2019, concludes that the development of SMRs would support domestic energy needs, curb greenhouse gas emissions and position Canada as a global leader in this emerging technology. SMRs are nuclear reactors that produce 300 megawatts of electricity or less. They can support large established grids, small grids, remote off-grid communities and resource projects.
The study, conducted by Ontario Power Generation, Bruce Power, NB Power and SaskPower, identifies three streams of SMR project proposals for consideration by the governments of Ontario, New Brunswick and Saskatchewan.
Stream 1 proposes a first grid-scale SMR project of approximately 300 megawatts constructed at the Darlington nuclear site in Ontario by 2028. Subsequent units in Saskatchewan would follow, with the first SMR projected to be in service in 2032.
Stream 2 involves two fourth generation advanced small modular reactors that would be developed in New Brunswick through the construction of demonstration units at the Point Lepreau Nuclear Generating Station. By fostering collaboration among the various research, manufacturing, federal and provincial agencies, an initial ARC Clean Energy demonstration unit plans to be ready by 2030.
Moltex Energy Inc.’s waste recycling facility and reactor is preparing to be ready by the early 2030s. Through ongoing support and collaborations, these advanced technologies could start being deployed as early as 2030 in support of the industrial needs in areas like Saskatchewan, Alberta and around the globe.
Stream 3 proposes a new class of micro-SMRs designed primarily to replace the use of diesel in remote communities and mines. A five-megawatt gas-cooled demonstration project is underway at Chalk River, Ont., with plans to be in service by 2026.
The report identifies the potential for all three streams to create employment and economic growth benefits for Canada, as well as opportunities to export technology and expertise to address global issues such as climate change and energy reliability.
The next action identified in the MOU is the development of a joint strategic plan, to be drafted by the governments of Alberta, New Brunswick, Ontario and Saskatchewan. The plan is expected to be completed this spring.
The partner provinces will continue to work together and across the nuclear industry to help ensure Canada remains at the forefront of nuclear innovation while creating new opportunities for jobs, economic growth, innovation and a lower-carbon future.
Alberta
Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn
From the Fraser Institute
By Tegan Hill
According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.
The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.
For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).
And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.
In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.
This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.
Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.
Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.
Of course, if the government falls back into deficit there are implications for everyday Albertans.
When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.
According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.
Author:
Alberta
Premier Smith says Auto Insurance reforms may still result in a publicly owned system
Better, faster, more affordable auto insurance
Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.
After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.
Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”
Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.
Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.
Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.
In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.
Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.
By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”
Quick facts
- Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
- A 2023 report by MNP shows
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