A staff memo to Environment Minister Steven Guilbeault states that ratepayers can expect higher costs for electricity..According to Blacklock’s Reporter, the department of Environment declined to estimate the additional costs consumers and industries might have due to “green” electrification..“As the economy transitions to net zero by 2050, there will be increased demand for clean electricity to decarbonize other sectors such as transportation or buildings,” said the March 27 memo. .“Some experts are predicting that demand could double by 2050.”.“This expansion of clean electricity supply towards 2050 will increase costs,” said the memo. .The document was prepared for Guilbeault's testimony at the Commons Environment committee..Cabinet has not provided specific information about how phasing out coal-fired power plants and mandating new electric vehicle (EV) sales will impact electricity rates in the future..In 2016, the Canadian Electricity Association submitted a report to the Senate Energy committee, showing that infrastructure costs in the electricity sector were estimated to be $350 billion..“That’s going to come mostly through utilities through rate hearings,” testified Sergio Marchi, then-CEO of the Association..In a 2017 report Electricity Sector in a Carbon-Constrained Future, the Senate committee stated that they could not estimate the impact on ratepayers..“Many Canadians could soon be paying higher electricity bills as the country tries to meet reduction targets for its greenhouse gas emissions,” said the report..The department of Natural Resources warned of substantial increases in electricity costs due to the government's EV mandate. It is estimated that the mandate alone would lead to a 23% increase in overall electricity demand..“The projected costs of the investments needed to enhance Canada’s electricity grid to meet increased demand from electric vehicle charging and the electrification of the economy more broadly are currently being developed,” said the Inquiry. .“The majority of grid costs associated with electric vehicles likely will be attributed to upgrades to distribution systems.”.Cabinet mandated the elimination of new gas and diesel-powered cars and pickups by 2050. Resulting increased demand for electricity “represents approximately 3.4% (by 2030), 16% (by 2040) and 22.6% (by 2050) of today’s domestic electrical power demand,” said the Inquiry..The figures were requested by Conservative MP Warren Steinley (Regina-Lewvan, SK), who asked “What are the government’s projections related to the increased amount of electricity that will be needed to power the electric vehicle charging stations in 2025, 2030 and 2035, and has the government developed a detailed plan on how to increase the capacity of Canada’s electricity grid?”
