Marijuana wasn’t the only green thing being celebrated on April 20.
In a somewhat unexpected move, the Calgary-based electricity company TransAlta announced it will accelerate the phase-out of eight coal-fired power units — representing almost 3,000 megawatts of generating capacity — with six of those to be converted to gas-fired generation between 2021 and 2023.
The remaining two will be closed on Jan. 1, 2018.
“It makes complete economic sense that they did that,” says Binnu Jeyakumar, electricity program director at the Pembina Institute, pointing to expiring power purchase agreements (PPAs) and an increasing inability for coal to compete with natural gas and renewables.
While calculations vary, it’s estimated that the conversion of the six coal plants to simple cycle gas operations — a process that will cost around $300 million in total — will cut emissions by between 30 and 40 per cent per megawatt hour of electricity produced.