REGINA - Saskatchewan says it has reached a deal with Ottawa that will allow the province to keep using coal-fired power plants in what it calls "a responsible manner" beyond 2030.

The federal government announced last week that provinces will have to phase out coal entirely and replace it with lower-emitting sources by 2030 or use carbon capture and storage technology.

Saskatchewan uses carbon capture at one of its coal-fired power plants, but hasn't made a decision about installing the technology at other plants.

The agreement will allow the province to meet federal emission requirements over time on an electricity system-wide basis, as opposed to regulation of every coal-fired plant.

The deal also acknowledges Saskatchewan's work in advancing carbon capture and storage and the province's move to 50 per cent renewable energy generation by 2030.

Almost 50 per cent of the electricity generated in the province uses coal as a fuel source, but coal-fired units are among the largest sources of air pollution in the country.