Alberta
Alberta is getting serious about nuclear power
Image from CanadianMiningJournal.com
New funding to study small modular reactors
Alberta has approved funding for a multi-year study that will explore how small modular nuclear reactors could be safely, technically and economically deployed for oil sands operations.
Alberta is investing $7 million from the Technology Innovation and Emissions Reduction Fund to help Cenovus Energy study how small modular reactors could be used in northern Alberta, and what additional information might be needed to pursue regulatory approval in the future.
As outlined in the province’s Emissions Reduction and Energy Development Plan and A Strategic Plan for the Deployment of Small Modular Reactors, Alberta is committed to responsible and innovative energy development, and small modular reactors have the potential to provide zero-emissions energy and further reduce emissions from Alberta’s oil sands in the years to come.
“A few years ago, the idea of expanding nuclear energy use was on the back burner – that is no longer the case. In Alberta, small modular nuclear reactors have the potential to supply heat and power to the oil sands, simultaneously reducing emissions and supporting Alberta’s energy future. This funding is the foundation for that promising future. I want to thank Cenovus Energy and Emissions Reduction Alberta for their leadership in this work.”
Small modular reactor technology involves scalable and versatile nuclear reactors that could potentially supply non-emitting heat and power to the province’s oil sands. Provincial funding delivered through Emissions Reduction Alberta is supporting the work needed to determine how this technology could be effectively used in Alberta.
“Small modular reactors have great potential to supply non-emitting energy in many different applications, including the oil sands. Further studies like this are needed to see if the technology is suitable for those industrial applications. If so, it could be transformational for the in-situ oil sands sector and other sectors in Alberta.”
“This enabling study is a great example of the collaborative approach we’ll need to help us reach our ambition of net-zero emissions from our operations by 2050. We’re exploring multiple technologies that would help significantly reduce our emissions, and small modular reactors show potential. This study will help us understand if this possible solution is economical and technically viable.”
Cenovus Energy’s $26.7-million enabling study will look at whether small modular reactor technology could be applied to steam-assisted gravity drainage projects in the oil sands, which drill into the reservoir and inject steam to soften the oil. Alberta Innovates recently released a study on the feasibility of using small modular nuclear reactors in steam-assisted gravity drainage operations, which is an early step to see if this technology could be part of Alberta’s long-term solutions to reducing emissions from industry operations. While there is currently no project being planned, this study frames the discussion around what is possible in the years ahead.
“Building off the work previously supported by Alberta Innovates, the success of Cenovus’s small modular reactor ERA-funded enabling study could provide substantial economic and environmental advantages throughout Alberta’s industrial sector, helping to advance a clean energy future for Canada.”
Quick facts
- Funding for this project comes from Emissions Reduction Alberta’s Industrial Transformation Challenge.
- Any future adoption of small modular reactor technology in Alberta would require an extensive regulatory and engagement process. The province is currently working to ensure the regulatory framework is in place and ready should private industry pursue this technology.
- On Sept. 12, an Alberta-Ottawa working group on emissions reduction and energy development met for the first time. The working group agreed to commence the development of a regulatory framework for small modular reactor technology and continue work on federal and provincial incentives for CCUS, hydrogen and other emissions-reducing technologies.
- Alberta, Saskatchewan, Ontario and New Brunswick released A Strategic Plan for the Development of Small Modular Reactors in 2022. The plan commits the Alberta Utilities Commission and Alberta Energy Regulator to deliver findings on areas of overlap, uncertainty and duplication between the federal and provincial regulatory systems to Alberta’s government in 2023.
- The Canadian Nuclear Safety Commission regulates all stages of life of nuclear power plants in Canada, starting from the initial environmental assessment to decommissioning. The approval process takes several years and offers opportunities for public participation.
From the Fraser Institute
On Monday, the Smith government announced that beginning next year it will change the way it funds surgeries in Alberta. This is a big step towards unlocking the ability of Alberta’s health-care system to provide more, better and faster services for the same or possibly fewer dollars.
To understand the significance of this change, you must understand the consequences of the current (and outdated) approach.
Currently, the Alberta government pays a lump sum of money to hospitals each year. Consequently, hospitals perceive patients as a drain on their budgets. From the hospital’s perspective, there’s little financial incentive to serve more patients, operate more efficiently and provide superior quality services.
Consider what would happen if your local grocery store received a giant bag of money each year to feed people. The number of items would quickly decline to whatever was most convenient for the store to provide. (Have a favourite cereal? Too bad.) Store hours would become less convenient for customers, alongside a general decline in overall service. This type of grocery store, like an Alberta hospital, is actually financially better off (that is, it saves money) if you go elsewhere.
The Smith government plans to flip this entire system on its head, to the benefit of patients and taxpayers. Instead of handing out bags of money each year to providers, the new system—known as “activity-based funding”—will pay health-care providers for each patient they treat, based on the patient’s particular condition and important factors that may add complexity or cost to their care.
This turns patients from a drain on budgets into a source of additional revenue. The result, as has been demonstrated in other universal health-care systems worldwide, is more services delivered using existing health-care infrastructure, lower wait times, improved quality of care, improved access to medical technologies, and less waste.
In other words, Albertans will receive far better value from their health-care system, which is currently among the most expensive in the world. And relief can’t come soon enough—for example, last year in Alberta the median wait time for orthopedic surgeries including hip and knee replacements was 66.8 weeks.
The naysayers argue this approach will undermine the province’s universal system and hurt patients. But by allowing a spectrum of providers to compete for the delivery of quality care, Alberta will follow the lead of other more successful universal health-care systems in countries such as Australia, Germany, the Netherlands and Switzerland and create greater accountability for hospitals and other health-care providers. Taxpayers will get a much better picture of what they’re paying for and how much they pay.
Again, Alberta is not exploring an untested policy. Almost every other developed country with universal health care uses some form of “activity-based funding” for hospital and surgical care. And remember, we already spend more on health care than our counterparts in nearly all of these countries yet endure longer wait times and poorer access to services generally, in part because of how we pay for surgical care.
While the devil is always in the details, and while it’s still possible for the Alberta government to get this wrong, Monday’s announcement is a big step in the right direction. A funding model that puts patients first will get Albertans more of the high-quality health care they already pay for in a timelier fashion. And provide to other provinces an example of bold health-care reform.
Nadeem Esmail
Senior Fellow, Fraser Institute
From the Montreal Economic Institute
Alberta’s move to fund acute care services through activity-based funding follows best practices internationally, points out an MEI researcher following an announcement made by Premier Danielle Smith earlier today.
“For too long, the way hospitals were funded in Alberta incentivized treating fewer patients, contributing to our long wait times,” explains Krystle Wittevrongel, director of research at the MEI. “International experience has shown that, with the proper funding models in place, health systems become more efficient to the benefit of patients.”
Currently, Alberta’s hospitals are financed under a system called “global budgeting.” This involves allocating a pre-set amount of funding to pay for a specific number of services based on previous years’ budgets.
Under the government’s newly proposed funding system, hospitals receive a fixed payment for each treatment delivered.
An Economic Note published by the MEI last year showed that Quebec’s gradual adoption of activity-based funding led to higher productivity and lower costs in the province’s health system.
Notably, the province observed that the per-procedure cost of MRIs fell by four per cent as the number of procedures performed increased by 22 per cent.
In the radiology and oncology sector, it observed productivity increases of 26 per cent while procedure costs decreased by seven per cent.
“Being able to perform more surgeries, at lower costs, and within shorter timelines is exactly what Alberta’s patients need, and Premier Smith understands that,” continued Mrs. Wittevrongel. “Today’s announcement is a good first step, and we look forward to seeing a successful roll-out once appropriate funding levels per procedure are set.”
The governments expects to roll-out this new funding model for select procedures starting in 2026.
* * *
The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.
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