Capital Power CEO says not planning new gas-fired plants due to Trudeau's regulations
29/11/2023 20:20
By Rod Nickel
WINNIPEG, Manitoba, Nov 29 (Reuters) - Alberta's Capital
Power is not planning to build new natural gas-fired power
plants in Canada as Prime Minister Justin Trudeau's proposed
electricity regulations to fight climate change make new
investments in such facilities unviable, CEO Avik Dey said.
The concerns raised by Capital CPX.TO , Alberta's
second-biggest power generator, mirror those of Alberta Premier
Danielle Smith, who on Monday said the province would defy the
federal government's proposed clean electricity regulations
(CER). Ottawa's regulations aim to eliminate emissions on a net
basis from the country's power grid by 2035.
"Am I looking at building new capacity? The answer is no,
today, because of the ambiguity of the CER," Dey told Reuters,
adding the company has no plans to buy any Canadian plants
either.
The CER in its current form doesn't justify investment in a
new gas-fired plant meant to operate 30 years, he said.
Capital Power's previously unreported position on new
plants underscores how the Trudeau Liberal government's draft
power regulations risk curtailing investment in a grid that
Ottawa expects to face growing demand as more Canadians buy
electric cars.
Unlike other provinces with hydro or nuclear power, Alberta
burns high-emitting natural gas to produce most of its
electricity. Smith has warned the regulations would lead to grid
brownouts and blackouts, a scenario that Dey said he sees as
well.
(Reporting by Rod Nickel in Winnipeg, Manitoba; additional
reporting by Steve Scherer in Ottawa
Editing by Denny Thomas and Chizu Nomiyama)
((rod.nickel@tr.com; X: @RodNickel_Rtrs;))