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Big Tech’s AI Dreams And Dems’ Electrification Push Are Keeping More Coal Online For Longer

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3 minute read

From the Daily Caller News Foundation

By Nick Pope

 

Power-hungry data centers and Democrats’ broad electrification agenda are teaming up to keep more coal-fired capacity online for longer than initially projected, according to The Wall Street Journal.

Tech companies’ data centers, policies pushing adoption of products like electric vehicles (EVs) and heat pumps and manufacturing activity are quickly driving up electricity demand projections, forcing some utility companies to keep coal-fired power plants operational for longer than anticipated, according to the WSJ. In 2023, S&P Global Commodity Insights projected that the U.S. would retire about 133,000 megawatts of remaining coal capacity by 2035, but the organization’s 2024 outlook now anticipates that roughly 105,000 megawatts of coal-fired generation will be retired by that year.

“Utilities around the country are kind of going into panic mode” because they are finding themselves unprepared for surging power demand, Michelle Solomon, a senior policy analyst at Energy Innovation, told the WSJ. Nearly every regional power market in the U.S. increased their projections for five-year annualized electricity demand growth between 2022 and 2023, with the rate doubling in some instances.

Coal-fired power plants are also benefiting from the fact that green energy generation is not coming online fast enough to replace retiring fossil fuel capacity, according to the WSJ. Coal is a dirtier fuel source than alternatives like natural gas, but the artificial intelligence (AI) boom and Democrats’ push for electrification — an effort intended to counter climate change —are prolonging its use.

“The existing fleet [of fossil-fuel generators] needs to stick around longer and run harder,” Patrick Finn, an analyst at the energy-focused consultancy Wood Mackenzie, told the WSJ. This dynamic will likely be a headwind for cutting emissions, which has been a top domestic and international priority for the Biden administration.

The Biden administration has pursued policies that will drive up long-term electricity demand while making it more difficult to build reliable, cheap fossil fuel-fired capacity.

On the demand side, the administration has pushed policies that will substantially increase the number of EVs on the road and issued regulations that often favor electric appliances, in addition to incentivizing power-intensive manufacturing while the AI boom takes shape. In terms of supply, the Biden Environmental Protection Agency (EPA) has moved to reshape the American power grid by effectively mandating the installation of costly carbon capture and sequestration (CCS) technology for coal plants, requiring that these plants control 90% of their emissions by 2032 if they are to operate past 2039, according to the Center for Strategic and International Studies.

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Saskatchewan becomes first Canadian province to fully eliminate carbon tax

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From LifeSiteNews

By Clare Marie Merkowsky

Saskatchewan has become the first Canadian province to free itself entirely of the carbon tax.

On March 27, Saskatchewan Premier Scott Moe announced the removal of the provincial industrial carbon tax beginning April 1, boosting the province’s industry and making Saskatchewan the first carbon tax free province.

“The immediate effect is the removal of the carbon tax on your Sask Power bills, saving Saskatchewan families and small businesses hundreds of dollars a year. And in the longer term, it will reduce the cost of other consumer products that have the industrial carbon tax built right into their price,” said Moe.

Under Moe’s direction, Saskatchewan has dropped the industrial carbon tax which he says will allow Saskatchewan to thrive under a “tariff environment.”

“I would hope that all of the parties running in the federal election would agree with those objectives and allow the provinces to regulate in this area without imposing the federal backstop,” he continued.

The removal of the tax is estimated to save Saskatchewan residents up to 18 cents a liter in gas prices.

The removal of the tax will take place on April 1, the same day the consumer carbon tax will reduce to 0 percent under Prime Minister Mark Carney’s direction. Notably, Carney did not scrap the carbon tax legislation: he just reduced its current rate to zero. This means it could come back at any time.

Furthermore, while Carney has dropped the consumer carbon tax, he has previously revealed that he wishes to implement a corporation carbon tax, the effects of which many argued would trickle down to all Canadians.

The Saskatchewan Association of Rural Municipalities (SARM) celebrated Moe’s move, noting that the carbon tax was especially difficult on farmers.

“It puts our farming community and our business people in rural municipalities at a competitive disadvantage, having to pay this and compete on the world stage,” he continued.

“We’ve got a carbon tax on power — and that’s going to be gone now — and propane and natural gas and we use them more and more every year, with grain drying and different things in our farming operations,” he explained.

“I know most producers that have grain drying systems have three-phase power. If they haven’t got natural gas, they have propane to fire those dryers. And that cost goes on and on at a high level, and it’s made us more noncompetitive on a world stage,” Huber decalred.

The carbon tax is wildly unpopular and blamed for the rising cost of living throughout Canada. Currently, Canadians living in provinces under the federal carbon pricing scheme pay $80 per tonne.

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2025 Federal Election

Fight against carbon taxes not over yet

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By Franco Terrazzano 

As the federal government removes the consumer carbon tax, the Canadian Taxpayers Federation is calling on all party leaders to oppose all carbon taxes, including the hidden tax on business.

“Canadians fought hard to force Ottawa to back down on its consumer carbon tax and now the fight moves to stopping the hidden carbon tax on business,” said Franco Terrazzano, CTF Federal Director. “Canadians can’t afford a carbon tax on business that pushes up prices at the gas station and makes it harder for our businesses to compete while they’re already struggling with a trade war.”

Today, the federal government cut the consumer carbon tax rate to $0. This will reduce taxes by about 17 cents per litre of gasoline, 21 cents per litre of diesel and 15 cents per cubic metre of natural gas.

The federal government still imposes an industrial carbon tax on oil and gas, steel and fertilizer businesses, among others.

During the Liberal Party leadership race, Prime Minister Mark Carney said he would “improve and tighten” the industrial carbon tax and “extend the framework to 2035.”

Just 12 per cent of Canadians believe businesses pay most of the cost of the industrial carbon tax, according to a Leger poll commissioned by the CTF. Meanwhile, 70 per cent said businesses would pass most or some carbon tax costs on to consumers.

Conservative Party Leader Pierre Poilievre said he will “repeal the entire carbon tax law, including the tax on Canadian businesses and industries.”

“Carbon taxes on refineries make gas more expensive, carbon taxes on utilities make home heating more expensive and carbon taxes on fertilizer plants increase costs for farmers and that makes groceries more expensive,” Terrazzano said. “Canadians know Poilievre will end all carbon taxes and Canadians know Carney’s carbon tax costs won’t be zero.

“Carney owes Canadians a clear answer: How much will your carbon tax cost?”

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