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Transitioning to sustainability in Saskatchewan power production

2010

This paper hypothesizes the future of Saskatchewan power production based on the theory of transition management. Power generation law and policy in Saskatchewan over the last century to the present is analyzed as a key component of a socio-technical regime. Understanding the legacy of law and policy is important given sustainability concerns and the realization that significant changes will be required in trajectories of development putting less strain on natural capital and ecosystem services. This paper examines the critical relationship between governance strategies at the macro socio and political landscape level and the particular policy mix that is found in the socio-technical regime of power generation in Saskatchewan. This exercise is informed by transition management theory and also the alternative explanations of path dependency. Switch points critical to the trajectory of power generation development are identified and used to illustrate and assess the plausibility of th...

TRANSITIONING TO SUSTAINABlLlTY IN SASKATCHEWAN POWER PRODUCTION' Margot Hurlbert, Jercrny Rayner, Kalhy McNutt Abstract This paper hypothcsizes thc future of Saskatchcwan power production bascd on the theory of transition management. Power generation law and polie)' in Saskatchcwan ovcr thc last ccolury 10 thc present is analyzed as a kcy component of a socio-technical regime. Underslanding thc legac)' of law and polie)' is important given slistainability conccrns and thc realization tImt significant changes \vill bc rcquired in Irajectorics of dcvelopment putting 1ess strain on natural capilal and ecosystcm services. This paper cx amines thc critical relationship bctwcen governance stratcgics althe maero socia and polilical Jandscape level and thc particular policy mix thai is faund in the sociotechnical regime of power generation in Saskatchewan. This exercise is informed by transition management theory and also the alternative explanations ofpalh depcndency. Switch points critical to the trajectory of power generation development are idelltified and uscd to illuslrate and asscss the plausibility of these theorelieal concepls. Current landscape developments in Saskatchewan, including the emergencc of concems for human-induced climatc change, the developmcnt of wind power and even the reemergencc ofnuclcar power generation as a poliey option, may facilitatc a transition towards greater sustainability. These sustainability paths are juxtaposed against the development of Saskalchewan's oil sands and the developmcnt of carbon capturc sequestration tcchnology. Possiblc future alternative pathways 10 sustainable power produelion are outlined and critiqued in the current Saskatchewan governance context. Kc)'words: transilion man;lgemcnt, power general ion, suslainability. I INTRODUCTION This paper facuses on transitianing (or change) in power production and thc challengc of lransitioning to suslainablc power production. Sustainability in this contcxt does not mean the continuance of the current actors such as SaskPowcr, or sustainability of thc eurrcnt technology employed, or the sustainability of Saskatchcwan's current energy sourccs, wind, coal etc. Sustainability mcans making decisions aboul the environment ensuring its preservation for future generations (Redclift ct al., 1997). Power generation I Thc author acknowlcdges linancial support for thc research on which this paper is bascd from thc Social Scicllce and Humanitics Research Council's Clllladilll1 Environmentallssucs prograrn. and supply has becorne a key focus for sustainability glven its conlributions 10 grccnhouse gas emissions and global and national c1imate change. Saskatchcwan is a prime case study given its vertical and horizontal efTectivc monopolyactor, SaskPower wh ich simplifies Ihe idcntification of govcrnment policy and power production decision points. Path dependency is an approach to policy devclopmcnt which rccognizcs that the adoption of a particular technology is followed by significant investment. As such an initial decision or "switch point" creates positive feedback whieh supports further rcfincments of thc same technology at new swilch points. Thc accumulation of sunk costs makes it increasingly difficult 10 diverge from this path or reopen thc initial decision, however suboptimal thc outcomcs may scern to bc in cornparison with competing tcchnologies. These initial switeh points and the following constrained decision making in future policy choices rccreates und perpctuutcs thc tcchnology initially chosen and thus creates an entrcnched socio-technical regime (Howlett, 2006; I-Iaydu, 1998). While path dependcncy explains continuity, a new understanding of change was required in institutional devclopment seeking 10 dcvelop strategies to swirch pathways as thc sustainability agenda requires. Transition management emerged focusing on the problems of ehanging socio-technical regimes by eonnecling the older foeus on technological trajeclories supported by shared idcas and practiccs 111 sClcnce and eng1l1ecnng communilies with thc later eonccms of sociologists of sClence and tcchnology about the stabilization of tcchnological dcvelopment by Ihe interaction of scicntists, policy-makcrs, end-users and activists (GeeIs and Schot, 2007). Transitions are cxplained in this theory as oeeurrmg Ihrough an alignmcnt of developments between three levcls: socio-teehnical landseapes, soeio-Iechnical regimes and niche innovations as illustratcd in Figurc I. Soci ~tc hnical landscapes are macro- level arrangements that provide the exogenolls poliey eontext concerning social rliles and norms. At the landscape level change is slow and incrcmental but can still often place downward pressure on soeio technical regimes. At the regime level cstablishcd communitics of cxpcns (cngineers, scientisI), along with policy makcrs and interest groups contribule to the alignment of speeifie goals that tcmpcr tcchnological development patterns. Niche-innovations must break into an cxisting social technical regime through process of leaming, performance improvcmenl or suppon from inOuential actors. While the types oftransition vary based on timing and the nature ofthe interactions, the theory can be used 10 trace specific trajectory of institutional devclopmcnt and identify dcstabilizing conditions (Rip and Kcmp, 1998). IncTi."asing Slnlclumlion ofaclivilics in loeal pracliccs SociD-h'chnic:11 landmlilt If\O!tfnlJu. f"nlf\l) , ~ J SO('iDh'fhnic:lI p <. '" ~ """ 'fp"'" ,n'h>"...,,·, 1IIn.l-aJ" ':= ;z.~ 1- l"(".;imr ~.nuil :\ ~ Tillll' Figurc I. From Gccls and SchOl (2007: 401) This paper relies on aversion of the theory which includes hOlh exogenaus (landscape level and niehe level) and endogenous change (regulatory and poliey) ehanges. Transition managemenl reeognizes the cxogcnolls ehanges ereate a window of opportunity for Illoving away from a partieular trajcctory ofproblcm soh'ing and ercating a Illorc sustainable soeio-teehnieal regime. Transition management is thus balh a govcrnance strategy and a theory of change (Kcmp and Rotmans, 2005). To cxplain trajeelorics, transition management foeuses on thc ehanging relationships between the soeio-technical regime and other two levels of the model. landseapc and niehe. Four possiblc alternatives of change exist. In addition to the null option or reproduclioll of Ihe cxisling regime, two possible transition trajectories could occur: Irons!ormalion whercin gradual adjustments in regime actors and institut ions ereate an environment more conducive to technical innovation complcmcntary to the existing tcchnologies or replacemenr if actors resist change or landscape pressure bccomcs more disruptive. If innovations are not sufficiently developcd the result may bc a lengthy pcriod of experimcntation and an eventual dealignment (md realignment In whieh a radically different configuration of actors, institlltions and ideas emerges. 2 POWER PRODUCTION IN SASKATCHEWAN An analysis of power production in Saskatchcwan over the past ccntury shows threc significant switch points: 2.1 Saskalchcwlm Power Rcsourcc Commission A signifieant switeh point oecliITed in 1929 with the creation of a commission mandated to acquire and publicly own power generation and integrate it with a Saskatchcwan transmission system. Landscape changes included the rise of cooperatives and public ownership in Saskatchewan, thc lack of a federal govcrnment presencc in power generation and thc continllal devclopmcnt of tcchnology (Whitc, 1976; Rediger, 2004). Because of its far rcaching transition this period is characterizcd as one of dealignmenr and realignment. 2.2 Thc Emcrgcncc of Lignite Coal In the 1970s lignite coal power generation emerged as the dominant power souree Saskatehewan. 111 One thousand fivc hundred thirty one MWs of lignite eoal power produetion was added to Saskatehcwan's generation mix. Two endogenous developments contributed: the availability of eapital and the Saskatchcwan clliture for supporting the government provisions 01' services (Whitc, 1976; Rediger, 2004). Because a new technology rcplaced the current technology this period is characterized as one of replacemenl. 2.3 Thc Abandonmcnt of Coal In 1994 lignite coal ceased to be a feasiblc generation option due to increased environmental concerns, thc potential for more stringent federal laws and regulations, increased public consultation and review 01' decisions, coneerns over government deficits as weB as lack 01' available funds and the dcregulation 01' electricity in North Amcrica. This third switch point is characterized as one 01' lramformarion in which agentIe transition to more sllstainable technologies has been embraced (see I-Illrlbert, McNutt, and Rayncr, 20 I0). 3 FUTURE PATHWAYS In the future SaskPower is embarking on a continuation 01' its transformation through embraeement 01' green teehnologies in powcr produetion including wind and the cleaner alternative to coal, natural gas. Options 01' clean coal with carbon capture and scquestration, nuclear, hydro and renewable sources 01' power generation all remain listed as future options (SaskPower, 2009a, SaskPowcr, 2009b). External pressure from landseape level or outsider social groups continues and gradual adjustmcnt and reorientation 01' the cxisting power production regime OCCllrs. SaskPowcr, as the dominant regime aetor, continucs to reorient existing developmcnt trajcclories on a modest changed path 01' emission reductions. lt is highly unlikely that reproducfion, or the eontinuation of the existing make up of power generation sources including eoal will eontinuc. The fedcral govemment announecd its intention to pass rcgulations to phase out eoal-fired plants that have reaehed the end of thcir eeonomie life by requiring more stringent standards. These regulations would eome into effec! in 2015 (Environment Canada, 20 I0). Othcr pathways arc possible. A combination of socio-teehnical landscape development and niehe teehnology innovation (nuclcar power generation) potcntially open a window of opportunily for a replacemenl path of power production regime in Saskatehewan. The adoption of this technology would nccessitate radieal transformation of the soeio-tcchnical regime itself with new aClors, a new regulatof)' contcxt, new research and ideas. Old institut ions and actors would disappear. Issues ofwaste disposal, the resouree eommitmenls necessary to integrate nuclear into the grid, safety eoncerns, thermal pollution, publie costs, potential population health impacts anel lack of public confidenec are all obstacles to provineial nuclear development (I-1arding, 2007). In addition, as nuclear encrgy is a matter within the jurisdietion of the fcderal govemment, the provincial electricity providcr, SaskPowcr would have to transform its current network of aceountability and aetors with whieh it internets. Reeent overturcs 01' the acceptability and possibility of nuclcar power generation have been made by SaskPower (Johnstone, 2010). At this time, this path still cannot be embraced with certainty. Although the replacemem path, or that of tcchnological substitution, has been rcjceted by olle analysis of lhe c1ectrieity seetor (Verbong and Oecls, (2007), this paper's authors argue that for the purposes ofthe scale of Saskatchewan c!ectricity, in the province of Saskatchewan, the possibilit)' of nuclear power generation makes this option availablc. Another possible future path is that of dealignment ami realignment. If innovations are unavailable to address landscape pressure a Icngthy period of experimcntation may ensue in which several tcchnologics exist side b)' sirle until one option evelltually becomes dominant. Perhaps this can be seen \Vith the contillued mutual devclopmcnt of wind and natural gas. BOlh of these have been proceeding side by side for several )'ears; perhaps one will cmcrge as dominant, or pcrhaps anothcr technology will. Extrancous pressures of robust environmental regimes surrounding earbon emissions or sueeess of developing technology such as clean coal may cause Ihis dealigmnent and realignmenl. Currently Saskatchewan is hcavily involved in carbon caplllrc and storage technology. SaskPower is developing a rul~seac demonstration project at one of its coal fired plants at a cosl of 1.4 billion (Govcrnmcnt of Canada, nd). A joint project with Montana is bcing explored through a melllorandulll 01' 1I1lderstanding whieh would involve thc construction 01' a new, commercial-scale C02 capture reference plant at one of SaskPowcr's coal·fired power plants with the C02 captured stored in Montana. The referenee plant would test a range of posl-eombuslion capture technologics (Tolltiwaehwuthikul, 2009). 4 CONCLUSION This paper has critiqucd the history of power production in Saskatchewan utilizing the theor)' of transition management. By illustrating major switch points of change in thc socio-tcchnical regime of power production in Saskatchcwan signilicant drivers and leadership can bc identilied for pursuing sustainable power production. This same theory can be utilizcd for devcloping a strategy of future power production decisions by identifying possiblc altemative pathways and predicting future exogenous ractors and niche technological innovations. Like a11 models the end result and usefulness is only so good as the quality ofthe information input. In Saskalchcwan rcproduclion ofthe cxisting socio-technical regime relying significantly on lignite coal and its current lechnology is highly unlikely. I-Iowever thc development of clean coal with carbon eapture and sequestration may enable a signifieant dealignment and realignment from thc eurrent transfonnative pathway of natural gas and wind. Given eurrent social faelors, a replaccment path 10 nuclcar teehnology is also a potential. ACKNOWLEDGEMENTS The authors acknowledgc linancial SUppOr1 for the research on which this paper is based from the Social Science and Humanities Research Council's Canadian Environmentallssues program, and research assistance from Shlomo Levi. REFERENCES Environment Canada. 2010. Govcmmcnt ofCanada to Regulatc Emissions from Electricity Sector, News Release, June 23, 2010 Availablc on the internet llt http://www.ee.gc.enlde rault.asp?lang-En&n=7 14 D9AAE- I&news-E5 959675-ß E60-4759-SFC3· D351 EA 8~ IC (last acccsscd 15 September 2010) Geels, F. and Johan Schal. J. 2007. Typology ofSociotechnical Transition Pathways. 36 Research Poljc)'. 36: 399 aI p. 400. 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