Small central Alberta village worried about future with province's planned coal power phase-out

Alberta is expected to phase out coal-powered electricity in the province much sooner than initially planned, leaving some small towns worried about their economic future.

The then-NDP government announced in 2015 that emissions from coal power generation would be eliminated by 2030. The current UCP government under Premier Danielle Smith plans to have a completely carbon-neutral grid by 2050, despite the federal government's target of 2035.

According to data from the Pembina Institute, a non-profit Canadian think-tank advocating for clean energy, Alberta is on track to remove coal-fired electricity generation from its mix this year.

Andrew Leach, a professor of economics and law at the University of Alberta, worked with former premier Rachel Notley in 2015 on her government's climate leadership plan.

He said the coal phase-out was seen by the industry as an aggressive and impossible policy given how much Alberta relied on the power source.

"We've now seen … the market take over with carbon pricing, renewable power and cheap gas all playing a big role," Leach told CBC's Radio Active last week.

"But at the time, it was certainly a big bet to even say that by 2030, you could do it and manage it."

The Genesee Generating Stations in Warburg, Alta., about 90 kilometres southwest of Edmonton, are the last two facilities in Alberta that run entirely on coal. Those plants are expected to transition to natural gas this year, according to an emailed statement from the Government of Alberta.

Dwayne Mayr, mayor of Warburg, Alta., said his community's coal plants have provided steady work for decades, but the winding down of coal operations means jobs are drying up. (Liam Harrap/CBC)

Dwayne Mayr, mayor of Warburg, Alta., said coal hasn't been his community's primary industry, but the plants have shaped his community, generating revenue and providing jobs to residents for decades.

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With the winding down of coal operations, he said employment opportunities are dwindling since fewer employees are needed to operate natural gas generators.

"They've already had a lot of layoffs and there's more coming in the near future," Mayr said.

Residents are fearful about the village's future, he said, but many have already been seeing the writing on the wall.

"The people that have been laid off, they know enough," he said.

"And those that were young enough that they didn't retire have certainly moved on to other fields."

While some of the province's coal plants were shut down, Leach said the rest have been converted to generate natural gas. Natural gas produces about half as many greenhouse gas emissions as coal.

That was the case for the hamlet of Wabamun, west of Edmonton, which had a history of coal mining that stretched over 100 years. The area's last coal mine closed in 2021, and its neighbouring power plants were converted to natural gas.

Rob Wiedeman, Division 5 councillor for Parkland County, said community morale took a hit for a while, but residents worked quickly to find new work. (CBC)

Rob Wiedeman, Division 5 councillor for Parkland County, which includes the former village of Wabamun, said the community is "surviving," but upwards of 1,200 jobs were lost in the transition.

He said the community's morale took a hit for a while, but residents worked quickly to find new work.

"They had to do what they had to do to make a living," said Wiedeman.

Josh Aldrich, press secretary for Minister of Affordability and Utilities Nathan Neudorf, told CBC in an emailed statement that there are almost 50 power plants under construction in the province, totalling more than 6,200 megawatts of generation capacity.

"While the NDP was reckless in their push for an early exit from coal that left the Alberta electricity grid vulnerable to volatile market prices and potential power outages, we are working hard to ensure the grid is reliable and affordable," wrote Aldrich. "Natural gas is an important part of the baseload mix that we rely on 365 days a year."

Along with wind and solar power, which have declined in cost over the last few years, natural gas power also remains relatively cheap.

But Leach said it might not stay that way.

"In 15 and 20 years from now when we see those continued cost declines and new technologies, those are more likely to swamp our market and make it less viable to use as much natural gas as we use today," he said.