Clean Electricity Regulations signal Canada means business in the global race for low-carbon investment

OTTAWA, ON — Scott MacDougall, Director of the Pembina Institute’s electricity program, made the following statement in response to the Government of Canada’s release of its finalized Clean Electricity Regulations:

“Across Canada, many provincial governments have already recognised the huge economic opportunity associated with dramatically expanding their power grids with reliable, affordable clean electricity. Whether it’s B.C., Quebec, Nova Scotia, New Brunswick, Ontario, Manitoba, Saskatchewan or Newfoundland and Labrador – the last few weeks have seen a string of announcements from provinces taking active steps to grow their supply of electricity with virtually all of that new supply coming from non-emitting sources.

“Not only will this bring billions of dollars of new investment in the form of clean electricity build-out, it will also bolster these provinces’ competitiveness as investment destinations in a world where companies are seeking out access to abundant low-cost, clean electricity to power their operations.

“Taken as a whole, Canada’s electricity grid is already on track to be 90 per cent emissions-free by the end of this decade. This puts it second amongst its G7 peers. But with many major economies now engaged in the race to grow their clean grids and attract international investment, todays’ regulations create a clear pathway for all provinces to capitalize and build on their existing clean electricity advantages. Whether it’s hydro, solar, wind, geothermal, or other non-emitting sources, the Clean Electricity Regulations offer direction and guidance for provinces to identify their own best path forward and utilize the resources that are best suited to their respective strengths and needs. They also provide guardrails for gradually phasing down emissions from gas-fired power plants, while still allowing the use of gas for when it really matters.

“Access to abundant clean electricity has become the backbone of modern, resilient economies, where consumers have the chance to fully experience the affordability benefits of switching to electrified end-uses (such as electric vehicles and home heat pumps). Research shows this has the potential to save most Canadian households hundreds of dollars a month on their energy bills.

“As our recent research shows, leading jurisdictions in the United States, Europe and Australia – in both hot and cold climates, and across various sizes of grids – have already integrated a high proportion of wind and solar power with no increase in power outages or inflated electricity prices. In short, clean power can be both reliable and affordable, and by recognising its importance, all governments in Canada can show they mean business when it comes to achieving prosperity for their populations for decades to come.”

[30]

Key facts

Canada is projected to be operating a 90 per cent emissions-free grid by 2030. This puts it second (after France) amongst its G7 peers. But with many countries now joining the clean electricity race at pace, Canada must continue to grow its clean grid if it is to retain this clean power advantage even as demand for electricity grows. For example, France – although it is already the leader in the G7 in terms of clean electricity – continues to grow its nuclear sector and invest in energy efficiency programs to both increase capacity and get the most value from its clean grid. Jurisdictions that can guarantee access to clean, affordable power will be best-placed to attract net-zero aligned international investment in 2030 and beyond.
Research from the International Energy Agency shows that, in 2024, global investment in clean technology is double that of fossil fuels. The IEA also finds that global investment in solar photovoltaic in 2023 and 2024 was greater than all other power generation technologies combined.
Wind and solar are already more cost-effective to bring online than gas. By modernizing their grids with energy storage, strong interconnections, and demand response mechanisms, provinces better enable these forms of generation, while also making their grids more resilient in the face of demand growth. A balance of these contributes to a flexible and reliable grid that can adjust for peak demand and low energy outputs.
Research from the Transition Accelerator shows that net-zero electricity in 2050 could save most Canadian households anywhere from $143 to $1,135 annually. A separate study from Clean Energy Canada finds that Canadian households can save hundreds of dollars per month today by installing heat pumps, energy efficiency measures, and using an electric vehicle.
The Clean Electricity Regulations have substantial flexibilities, such as annual emissions limits for companies’ fleets within provincial boundaries (rather than individual units), gradual phase-in of requirements between 2035 and 2050 depending on a number of factors for each generator, and the ability to use some emissions offsets that, taken together with other flexibilities, will allow for the use of gas-fired power when it matters most. This gives provinces the space to transition and grow their grids to meet their unique needs.
Pembina Institute research shows that jurisdictions around the world are already integrating high levels of renewable energy. Denmark has already achieved a grid powered by 65 per cent wind and solar, while Germany is sitting at 40 per cent. This has not compromised reliability or affordability for consumers.