The worldwide transition away from fossil fuels is accelerating, and Canada’s newly introduced Clear Electrical energy Rules and Powering Canada Ahead framework will assist make sure the nation efficiently navigates that transition whereas defending affordability and grid reliability.
Already, the U.S. and European Union are collectively investing trillions in cleaner industries to safe their place on this new commerce order. Fortunately, Canada has a clear industrial ace up its sleeve that a lot of our rivals don’t: clear energy. However because it stands, Canada is vulnerable to squandering its profitable play – a threat that the federal authorities desires to mitigate.
The brand new Clear Electrical energy Rules shall be important in serving to Canada construct a net-zero electrical energy grid by 2035, a purpose shared by your entire Group of Seven. However the implications are broader than simply electrical energy technology alone. This previous June, for the primary time, Canada’s Vitality Regulator supplied detailed net-zero situations for our financial system, concluding {that a} larger, cleaner and smarter electrical energy system would be the “spine” of any net-zero future. The evaluation additionally discovered that – opposite to the views of some – attaining (and even exceeding) the federal government’s purpose of net-zero electrical energy by 2035 is feasible.
The excellent news is that Canada is starting with a big head begin. Our grid is already 84 per cent non-emitting, in comparison with solely 40 per cent within the U.S. That implies that the merchandise we make right here, from metal to batteries to aluminum, have already got a decrease carbon footprint. It’s one of many causes Common Motors and others opted to make their parts for EV batteries in Canada. And it’s why the Canadian metal trade is vocal in its assist of federal authorities measures to develop clear energy.
What’s extra, households will really spend much less on power as they swap to wash electrical energy, because of environment friendly, bill-slashing applied sciences like electrical autos and warmth pumps, in response to a quantity of research. And powering your own home and automobile with clear electrical energy means avoiding the fossil gasoline value volatility inflicted by Russia or Saudi Arabia.
However these new electrical energy rules come at a time when Canada is vulnerable to dropping its clear industrial benefit. The nation goes to wish much more electrical energy sooner or later (roughly double, in truth) as Canadians plug their vehicles, houses, and factories into the grid. Canada is at a important juncture. With out a clear directive, our grid faces the prospect of changing into dirtier – in stark distinction to the route our commerce companions are heading.
Certainly, regardless of making some progress with a new power plan, Ontario just lately supplied up six new contracts for pure gas-fired energy to handle its increasing power wants, particularly in mild of main nuclear crops going offline. A couple of provinces have opted to struggle the federal authorities’s clear energy ambitions, Alberta most vocally. Premier Danielle Smith even went as far as to reference her opposition to the rules in the closing phrases of her election victory speech.
However the alternative is nationwide, and the provinces resisting these rules are sometimes these with probably the most to achieve in new funding. Alberta has already bagged virtually $4-billion of personal sector funding in renewable energy. In the meantime, Atlantic Canada is attracting clear hydrogen proposals left, proper and centre, largely off the again of its plentiful offshore wind prospects.
Clear energy is reasonable. Wind can now produce electrical energy at decrease prices than pure gas-fired energy in Alberta and Ontario. Solar energy is already cheaper than electrical energy from gasoline in Alberta and is on observe to be 16 per cent inexpensive by the top of the last decade. And opposite to common perception, there are plenty of methods to stability renewables’ variability.
Whereas clear electrical energy is commonly the most affordable sort round, shifting our grids away from fossil fuels requires funding. To enhance the brand new rules, the federal authorities is providing assist to provinces and utilities, together with new funding tax credit that cowl between 15 and 30 per cent of funding prices for clear electrical energy tasks. They’re additionally providing up new financing sources just like the Canada Infrastructure Financial institution and assist with clear electrical energy technology, transmission, and storage tasks – together with the Atlantic Loop.
Now the provinces have to step up. They should resolve if they are going to row collectively towards a extra aggressive Canada, making the investments and modernizations required, or if they are going to row in opposition to the worldwide tide and threat squandering our benefit.
Constructing a clear electrical energy infrastructure that may energy our prosperity within the twenty first century will take work. The query just isn’t, can Canada afford to take these steps? However as a substitute, can it afford to not?
This submit was coauthored by Jason Dion and initially appeared within the Globe and Mail.
