ESTEVAN, Sask. - Prime Minister Stephen Harper is warning Canadians to expect higher energy bills as new technologies such as the underground storage of carbon dioxide develop and come online.
Harper was in southeastern Saskatchewan on Tuesday to tour SaskPower's Boundary Dam power station, where the federal and provincial governments are spending hundreds of millions of dollars to develop the first so-called "clean coal'' project in Canada.
Clean coal and the ability to capture greenhouse gas emissions from large polluters for storage underground is a key plank in the Conservative government's plans to address climate change.
When asked what effect these costly and experimental technologies will have on the average power consumer, Harper offered a warning.
"All the cost pressures on energy, including admittedly cost pressures around environmental regulation, are likely to lead to upward pressure on power prices across this country in years to come,'' Harper said.
"Canadians have to understand that there is a price to this.''
Saskatchewan is the largest emitter per capita in the country thanks to its reliance on burning coal for energy.
The clean coal pilot project at Boundary Dam is not expected to be online until 2015. When complete, the 100 megawatts of power the unit will produce is only a fraction of the province's 3,500 megawatt generating capacity, but will reduce greenhouse gas emissions by one million tonnes annually.
The project is estimated to cost $1.4 billion, with the federal government providing $240 million and the province putting up $758 million. The private sector is being looked to for the rest because the carbon dioxide that is captured can be piped to nearby oilfields and used to force oil to the surface.
The federal government investment, which was announced in last month's budget, has been criticized by environmentalists who say the money is better spent on developing energy sources that don't produce greenhouse gases in the first place.
But Harper said developing clean coal and carbon capture technology will make Canada a leader in green energy in an increasingly carbon conscientious world.
"When that day comes, we will be able to say it all began right here in Saskatchewan,'' he said.
The costs of such experimental technology is a real concern.
Saskatchewan's previous NDP government had explored the idea of creating a 300 megawatt clean coal generator, but ended up backing away when costs mushroomed to $3.8 billion.
Harper acknowledged that cost is a major concern.
"These remain expensive technologies,'' he said.
The costs are mitigated by the ability to market the technology around the world, said Saskatchewan Premier Brad Wall.
"Imagine the commercialization opportunities for that technology around the world,'' Wall said. "Imagine the interest in India, China and the United States, who, by the way, are forecasting a greater reliance on coal, not less.''
Harper left little hope that the federal government will help out should costs escalate on this project.
"The federal government doesn't have plans to fund cost overruns,'' Harper said. "Obviously the province and the other partners will be watching those very closely.''
