01-40_WC_149_JUL-AUG26_PT - Flipbook - Page 10
ASK A LAWYER
Allocating a
Public Resource
Water and power generation in Saskatchewan
BY JEREN TUCHSCHERER
S SASKATCHEWAN’S ROLE in Canada’s clean
energy economy grows, power generation projects,
including nuclear and thermal facilities, are expanding
in parallel and attracting major attention from both
the government and private sectors. While much of
the focus is trained on emissions reduction and economic
opportunity, one issue is dominating behind the scenes: water.
Electric power generation, particularly the nuclear and
thermal generation, such as natural gas, biomass, and carbon capture-enabled facilities, depends heavily on reliable
and sustainable access to water. Water is essential for cooling and steam generation, which are paramount to the core
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operational processes in these facilities. While Saskatchewan
has substantial resources to support energy development,
these large-scale power generation projects can require
significant amounts of water for extended periods of time.
As a result, developers are forced to navigate the evolving
legal and regulatory frameworks that govern water use and
licensing in Saskatchewan.
Water licenses
Water in Saskatchewan is classified as a public resource,
governed by the province. The Saskatchewan Water Security
Agency (WSA) administers water rights, approvals, and
grants corresponding licenses under The Water Security
Agency Act (the Act). For developers, legal considerations
must be made in the planning of any power generation
Jeren Tuchscherer is an Associate with
Miller Thomson LLP in Saskatoon.
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WATER C AN ADA • JULY/AUGUS T 2026
project to ensure compliance with the Act. A sustainable water
source must first be identified to determine which considerations must be made, and can include groundwater, surface
water, municipal water supplies, or treated wastewater.
Where a project plans to pull water directly from rivers,
lakes, or aquifers, approval from the WSA pursuant to the
Act will be required. This type of request—by way of application under the Act—will be assessed by the WSA regarding
the potential impact on its existing users, connected aquatic
ecosystems, and long-term water availability. This is particularly
relevant for nuclear and thermal facilities that require continuous cooling water withdrawals, often at volumes that may
compete with agricultural, industrial, and municipal users. In
regions of Saskatchewan that may be more drought-prone, this
competition becomes a central legal and policy concern.
Project considerations
The assessment of environmental impacts can be a significant
hurdle in the development of a power generation facility. Provincial or federal environmental assessments review processes
that place significant emphasis on how water withdrawals,
usage, and discharges will affect surrounding environments. Significant impacts
include groundwater protection, wastewater disposal, stormwater management,
and effects on surrounding wetlands
or existing drainage systems. Cooling
systems, boiler operations, and emissions
control processes can generate wastewater
and thermal discharge (i.e. heated water),
which require appropriate treatment or
disposal approvals. Improper discharge or contamination can
expose operators to a number of risks, including environmental
liability, regulatory penalties, and remediation obligations.
The financing of power generation projects is also increasingly
tied to impacts on water sources. Lenders and investors are paying
close attention to regulatory approvals, environmental liabilities,
and long-term water availability when assessing the viability of a
power generation project. Uncertainty in any required permitting,
water licensing or environmental compliance can create risks and
interruptions for project financing and development timelines.
The development of power generation infrastructure presents
a major economic opportunity for Saskatchewan, especially as
the government and private sectors continue to invest in the
electricity generation sector and grid reliability. However, these
projects have impacts beyond the energy production itself and
must be viewed through an integrated legal and resource management lens. Water licensing, environmental approvals, municipal and agricultural servicing, Indigenous consultation, and
long-term water source sustainability are all becoming central
considerations for the developers of these emerging projects.
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