Achieving Canada’s climate goals will require a massive $690 billion investment in the country’s electrical utilities, Environment Minister Steven Guilbeault revealed.
Blacklock's Reporter says the new Clean Electricity Regulations aim to eliminate fossil fuel use for electricity generation, a shift Guilbeault says is essential to combating climate change.
“Climate change is a growing threat to Canada and the world,” said Guilbeault in a Regulatory Impact Analysis Statement.
“We are already seeing the costs.”
Electricity generation currently accounts for nearly 8% of Canada’s greenhouse gas emissions, with most coming from provinces like Alberta, Saskatchewan, Nova Scotia, Ontario, and New Brunswick.
The government’s plan to reach net-zero emissions will require a dramatic transformation of the electricity sector.
“A net-zero economy will require far more electricity than we use today,” the analysis noted, citing a widespread switch to electric vehicles and electric heating systems as key components of the transition.
“To cut greenhouse gas emissions, households and businesses will increasingly switch from fossil fuels to using energy in the form of electricity.”
The costs are steep. Between 2024 and 2050, building and maintaining the infrastructure to support the anticipated growth in electricity demand is expected to cost $690 billion in present value terms, according to the analysis.
The financial impact will extend to households, particularly in provinces without access to nuclear or hydroelectric power. A 2023 environment department report estimated ratepayers could face a 15% increase in electricity costs, with annual hikes by 2040 of $485 in Nova Scotia, $154 in Alberta, $111 in Saskatchewan, and $55 in New Brunswick.
Energy NL, a Newfoundland and Labrador trade group, highlighted the challenge in a submission to the Senate energy committee.
“Achieving net zero by 2050 is likely not possible without the support of multiple levels of government,” the group wrote.
“To achieve its goal of a net-zero electricity sector by 2035, Canada will need 121 terawatt hours of new supply to replace carbon sources."
This amount of electricity, they noted, is equivalent to building four new Churchill Falls hydroelectric plants, Labrador’s iconic generation station and one of the largest in Canada.
The scale of the effort will require a doubling or tripling of Canada’s current electricity output, Energy NL said. “To meet Canadian demand and replace carbon-based sources, Canada needs new hydro facilities equal to four Churchill Falls.”
Guilbeault’s department emphasized the necessity of the transition, despite the costs.
“We are trying to ensure Canada meets its obligations to combat climate change while providing reliable energy to Canadians,” the minister’s statement concluded.
