Capital Power (OTCPK:CPXWF) has made it clear that building new natural gas-fired power plants in Canada is no longer on the table. In an animated interview with Reuters, CEO Avik Dey expressed that Prime Minister Trudeau’s proposed clean electricity regulations are wreaking havoc on potential investments in gas-powered energy production. The company, which is the second largest power generator in Alberta, is vehemently opposing the government’s new clean energy regulations, alongside Alberta Premier Danielle Smith, who has pledged to defy the proposed electricity policies.
CEO Voices Concerns
Capital Power’s CEO, Avik Dey, didn’t hold back as he highlighted his apprehensions about the limitations of the current clean energy regulations. Dey highlighted the unviability of investing in a new gas-fired plant expected to operate for 30 years under the current regulatory framework. Additionally, Alberta’s Premier, Danielle Smith, and Dey both expressed concerns that the proposed regulations could lead to grid failures, including brownouts and blackouts due to the restrictions on peak-use plants.
Urging for Policy Changes
Dey emphasized that altering Canada’s federal net-zero goal to 2045, along with modifications to the end-of-life parameters for plants, restrictions on peak-use plants, and the use of offsets, could make a net-zero grid a realistic possibility. However, if these changes are not implemented, the policies proposed by the government would be detrimental to regions like Alberta, according to Dey. It’s clear that Capital Power (OTCPK:CPXWF) is advocating for substantial alterations to the current regulatory framework, or it may seek alternative strategies to navigate the challenging landscape.
The CEO’s Discontent
In a defiant tone, Dey’s comments conveyed a clear frustration and disdain for the current regulatory climate in Canada. The heated discourse indicates that Capital Power is willing to fight vehemently against Canada’s proposed regulations and is not afraid to voice its staunch opposition to what it perceives as stifling its growth and future prospects.
The battle between Capital Power and the Canadian government over the proposed clean electricity regulations is intensifying. With claims that the regulations could lead to potential grid failures and render investments unviable, the standoff between the two parties shows no signs of abating. It remains to be seen how the government will respond to the outpouring of grievances from major industry players like Capital Power.