VICTORIA — Evan Pivnick, clean energy program manager at Clean Energy Canada, made the following statement in response to the publication of the Government of Canada’s clean electricity strategy and the Clean Electricity Regulations:
“With the demand for clean electricity increasing rapidly, the federal government has a crucial role to play in helping Canada’s 10 separate provincially-regulated electricity grids meet the challenge.
“The new regulations, which are both reasonable and achievable, will help Canada deploy the clean electricity required to meet our 2050 net-zero targets. After a multi-year consultation, the final regulatory design provides flexibility aimed at meeting each province’s unique needs while minimizing pollution and protecting reliability and affordability.
“Canada’s cleanest grids produce the cheapest power. And as we look to the future, our research in Alberta and Ontario shows that wind and solar are able to produce more affordable power than natural gas generation—a fact that holds true in much of the world. As provinces expand their electricity supply, these regulations will be key to ensuring they do so in the cleanest, most affordable way while limiting the growth of new polluting power sources and ensuring that natural gas-fired-power is only used as a last resort.
“While there are a number of ways that the regulations will help achieve this, the final details for the clean electricity investment tax credit—worth an estimated $25.7 billion—will be key to smoothing the road ahead for provinces. In addition, recent federal funding to build new generating and transmission capacity in a number of provinces, including New Brunswick, Alberta, and Saskatchewan will help keep costs down for ratepayers.
“Globally, the pace of electrification is only increasing. The world is set to add three times more renewable power in the next six years than it did in the previous six. Clean power is about more than just affordability—it’s also about attracting international investment. Indeed, a recent announcement of a new Honda battery plant cites Canada’s clean power and “low-emissions” manufacturing capabilities. These regulations will ensure Canada continues to secure this kind of investment.
“Meanwhile, they will also support the record numbers of Canadians electrifying their daily lives. Swapping out gas cars for EVs and gas heating for heat pumps can save households hundreds a month, and affordable power is the key to unlocking it.
“Electricity is the backbone of the energy transition—and these regulations and related investments are the glue that will hold it together. We congratulate the federal government for getting them over the line.”
KEY FACTS
- A household in Toronto that switched out its gas cars for electric versions, ditched their natural gas appliances, installed a heat pump, and made a few energy efficiency upgrades would cut $550 off their monthly bill, even taking into account upfront costs. A similar house in Vancouver could save $777. These families would also reduce the carbon footprint of running their cars and homes by more than 90%.
- The International Energy Agency has found that household expenditure on energy is projected to be lower in a net-zero future than with current policies, resulting in lower energy bills. These savings also far outweigh the increased cost borne by consumers in adopting higher efficiency and fuel switching measures.
- Provinces with grids based on fossil fuels tend to have the highest rates. For example, Alberta and Saskatchewan have the most-polluting grids and are among the provinces with the highest rates, while Quebec, Manitoba, and B.C. have the cleanest grids and the lowest rates.
- The world now invests almost twice as much in clean energy as it does in fossil fuels: Global energy investment is set to exceed US$3 trillion for the first time in 2024, with US$2 trillion going to clean energy technologies and infrastructure. Investment in clean energy has accelerated since 2020, and spending on renewable power, grids and storage is now higher than total spending on oil, gas, and coal.
RESOURCES
Report | Opening the Door
Report | A Renewables Powerhouse
