The proposed plant, which would be used to provide additional electrical power during peak utilization periods, would use natural gas as a fuel.
SaskPower must ensure the required infrastructure is in place to help meet the demand for power in the province, Crown Corporations Minister Ken Cheveldayoff commented.
The proposed plant "is part of SaskPower's plans to add peaking capacity to help reinforce the electrical system,'' Cheveldayoff added in a news release.
Consultations with municipal officials and landowners about the project is underway.
An open house to provide information about the project will be held at the Spy Hill Community Hall from 2 to 8 p.m. on March 25.