Enserva’s Provincial Spotlight Series provides an overview of the latest policy updates, regulatory changes, and industry-specific developments in our members’ operating areas. In this edition, we revisit Saskatchewan to explore topics pertinent to the energy services, supply, and manufacturing sectors.
ICYMI: The previous issue, published on March 5th, highlighted Alberta.
Political Insights
Premier Scott Moe and Energy and Resources Minister Colleen Young recently attended CERAWeek 2025 in Houston, reinforcing Saskatchewan’s position as a key jurisdiction for responsible energy development. The province’s delegation engaged with energy leaders from North America and beyond, highlighting Saskatchewan’s opportunities in oil, gas, uranium, biofuels, wind, and hydro power.
In a further commitment to energy security, Premier Moe announced that Saskatchewan is joining the Governor’s Coalition on Energy Security. Saskatchewan plays a crucial role in North American energy stability by exporting 21 million cubic metres of oil to the US annually. As the second Canadian province—after Alberta—to join the coalition, Saskatchewan aligns with US governors in advocating for lower energy costs, increased reliability, and sustainable economic development.
Saskatchewan 2025 Budget
The 2025 Saskatchewan budget, released on March 19, 2025, prioritizes affordability, enhancing health and social services, economic growth and fiscal responsibility.
- Oil & Gas Investment: New Low Productivity and Reactivation Oil Well Program and a four-year extension of the Oil Infrastructure Investment Program.
- Infrastructure & Trade: $4.6B in capital projects, including $777M for highways, plus $40.6M to expand international trade.
- Fiscal Outlook: $12M surplus; revenue at $21.1B (+6%), expenses at $21.04B (+4.5%).
Regulatory & Policy Updates
- SaskPower has launched two new rebate programs:
- Indigenous New Homes Rebate – Provides financial support for eligible Indigenous communities in Northern Saskatchewan to incorporate energy-efficient measures in new home construction. The rebate is targeted at homes that rely on electric heat, which can lead to high power costs. Homes built under the program are expected to reduce power and energy bills by up to $3,000 annually. The rebate is funded by the Government of Canada’s Future Electricity Fund and is intended to improve energy efficiency and lower electricity demand on the provincial grid.
- RRS for Small and Medium-Sized Business, Farm, and Residential Customers – Allows customers to offset their greenhouse gas emissions by purchasing Renewable Energy Certificates (RECs) from SaskPower’s renewable generation facilities. This option, previously available only to large industrial customers, provides an alternative to self-generation for small and medium businesses, farms, and residential customers. Participants can offset some, or all, power consumption at a rate of $0.015 per kilowatt-hour.
- Interprovincial Trade: Premier Scott Moe is advocating to streamline domestic trade regulations and amend the Canadian Free Trade Agreement (CFTA) in response to US tariff threats. Regulatory discrepancies between provinces create unnecessary barriers for industries like trucking, construction, and mining. With Saskatchewan exporting over $20 billion in goods and services annually to other provinces, strengthening interprovincial trade remains a top economic priority.
- Natural Hydrogen Exploration: Interest in Saskatchewan’s natural hydrogen potential is growing, with ongoing geological assessments examining subsurface formations for production and storage opportunities. Recent exploration efforts are focused on understanding the region’s viability.
Challenges & Risks
- Trade Tensions: The United States has imposed a 25% tariff on all steel and aluminum imports, effective March 12, 2025. In response, Canada implemented reciprocal 25% tariffs on $29.8 billion worth of US products, bringing the total value of reciprocal tariffs to nearly $60 billion. These measures have significant implications for Saskatchewan’s energy sector, which relies on steel as a critical input across the energy supply chain. Local steel companies are already feeling the impact, with potential disruptions to supply chains and project costs. The provincial government is working with industry stakeholders to assess the situations and explore mitigation strategies, as broader trade tensions – including new Chinese tariffs – add to economic uncertainty.
- Federal Regulations: Saskatchewan continues to push back against federal energy and environmental policies, including the proposed oil and gas emissions cap and Clean Electricity Regulations. With uncertainty surrounding the federal government’s direction amid a change in leadership, the province remains firm in its opposition to these policies that could undermine economic growth and energy security. Saskatchewan continues to advocate for regulatory flexibility to support the energy sector’s competitiveness, a stance that has been reinforced by recently imposed tariffs, which exacerbate economic pressures.
Upcoming Industry Events: On April 2nd, 2025, Enserva is co-hosting a networking reception with CAOEC, EPAC, and Canadian Propane Association, bringing together Saskatchewan MLAs, policymakers, and industry leaders. This event provides a valuable opportunity to engage with key decision-makers and connect with peers in the energy sector. Enserva members interested in participating can contact the policy team at policy@enserva.ca.
The Bottom Line
Saskatchewan’s 2025 budget reinforces its commitment to economic growth, resource industry competitiveness, and infrastructure investment. With new incentives for oil and gas, streamlined regulations, and workforce expansion efforts, the province is positioning itself for long-term industry success. Saskatchewan is also renewing efforts to ease interprovincial trade, strengthening market access for businesses operating across Canada.
