The federal and Saskatchewan governments should strike a grand bargain to finance the development of the province’s growing nuclear power industry.  

That’s the lead recommendation in a report released today by Clean Prosperity, called “A Nuclear Grand Bargain: How to grow an affordable and low-emitting electricity grid in Saskatchewan.”

Deploying nuclear power with federal financial support can help Saskatchewan meet the rising electricity demands of its rapidly-growing economy, keep power affordable for households and businesses, and achieve the provincial government’s goal of a carbon-neutral electricity sector by 2050.

“Saskatchewan is growing fast, and we’re going to need a lot more electricity to support that growth. If Saskatchewan can hammer out a deal with Ottawa, we could use our uranium right here at home to generate affordable power, create good jobs, and set our economy up for the long haul.”

Jeff Davis, Director for Saskatchewan, Clean Prosperity

“Saskatchewan is growing fast, and we’re going to need a lot more electricity to support that growth,” said Clean Prosperity Saskatchewan Director Jeff Davis, co-author of the report. “If Saskatchewan can hammer out a deal with Ottawa, we could use our uranium right here at home to generate affordable power, create good jobs, and set our economy up for the long haul.”

Saskatchewan grand bargain outperforms other scenarios on costs and emissions

Using energy-economy modelling from Open Insights, the report looks at combining federal support for nuclear power development with a restart of the province’s Output-Based Performance Standards (OBPS) industrial carbon pricing system. 

Saskatchewan suspended the OBPS in April 2025. As a result, the federal government has the legal authority to impose its own industrial carbon price on large emitters in the province.

Clean Prosperity modelled a federal-Saskatchewan nuclear grand bargain that adds 2,600 MW of new non-emitting power generation by 2050, alongside a restart of the OBPS. We found that this scenario could achieve 11 megatonnes of emissions reductions — at the same time that the province increases power generation by nearly 50%. The grand bargain scenario would offer almost double the emissions reductions of the planned six-megatonne Pathways carbon capture project.

The grand bargain outperformed all the other scenarios that Clean Prosperity modelled, considering both electricity costs and emissions reductions. That includes a scenario where Saskatchewan develops nuclear power on its own, and one where the federal government simply reimposes industrial carbon pricing. 

If it restarts the OBPS, the Saskatchewan government can protect energy affordability by refunding carbon costs directly to utility customers, without undermining emissions reductions.

Financing package should ensure skin in the game for all participants 

Clean Prosperity’s report analyzes and compares case studies from nuclear reactor projects in Canada, South Korea, the United Kingdom, and the United States. Based on experience from other jurisdictions, the report recommends that the Saskatchewan grand bargain include:

• Federal co-financing for a substantial share of the cost of Saskatchewan’s first nuclear reactor, via concessional loans, loan guarantees, or similar instruments
• Federal investment tax credit coverage across the full duration of the project, past the current end date of 2034 if necessary
• A provincial equity contribution equivalent to 5% of project costs
• A joint Indigenous loan guarantee to allow Saskatchewan First Nations to acquire equity in the new reactor

The project financing structure should ensure “skin in the game” for both orders of government, all proponents, and major contractors. Federal loans should be subject to specific oversight and public reporting requirements to avoid political interference, and federal funds should be contingent on the project achieving key milestones.

“The upfront cost of financing a nuclear power plant is massive, and Saskatchewan’s ratepayer base is too small to shoulder it alone,” said Davis. “If we go it alone, electricity rates will go through the roof. By making a deal with Ottawa we can keep borrowing costs down and protect ratepayers.”

Follow the lead of established nuclear jurisdictions

Clean Prosperity also recommends that the Saskatchewan government embrace fleet-based planning, and follow the lead of established nuclear power jurisdictions in choosing a reactor model. This would help the province avoid first-of-a-kind costs, learn from others’ construction and operational experience, and benefit from the development of cost curves. 

Buy time with renewables

Clean Prosperity’s report finds that Saskatchewan has room for significant expansion of wind and solar energy generation, as well as battery storage capacity, to meet its fast-growing energy demands. Increased renewable generation can help the province buy time while it deploys nuclear power. Modelling shows that expanding renewables up to 39% of total generating capacity would have a negligible effect on electricity rates.  

Read the report:

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