Canada's Energy Future
Canada Unveils National Strategy to Fortify Electricity Grid, Boost Affordable Energy
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Canada launched its National Electricity Strategy on June 25, 2024, aiming to stitch together the country's fragmented regional grids with new transmission lines. Natural Resources Canada says electricity demand could nearly double — rising between 1.7x and 2.2x — by 2050, meaning Canada must build more grid infrastructure in the next 25 years than it has in the last century.
The plan's centerpiece is a new Federal-Provincial-Territorial Framework on Interties — a formal mechanism to coordinate grid planning across provinces and settle long-running disputes over who pays for shared transmission lines. The federal government has backed the strategy with $27.3 billion in Clean Electricity Investment Tax Credits through 2035, plus $600 million for the Smart Renewables and Electrification Pathways Program, according to Budget 2024.
Canada's Grid Problem: Built North-South, Not East-West
Canada's electricity system was designed to trade power with the United States, not between provinces. The result is a patchwork grid where Quebec exports surplus hydropower to New England while neighboring New Brunswick burns oil. Natural Resources Canada notes that earlier attempts to fix this — like the 2017 Regional Electricity Co-operation initiative — collapsed because provinces couldn't agree on who should foot the bill for cross-border lines.
Canada's grid is currently about 82% non-emitting overall, according to Statistics Canada. But that number masks huge gaps: Quebec sits near 99% clean, while Saskatchewan is around 15%. The new Intertie Framework aims to fix this by adopting a "beneficiary pays" cost model — meaning provinces that gain the most from a new line pay the most for it.
Minister Wilkinson: Energy Sovereignty Is the Core Goal
Energy Minister Jonathan Wilkinson framed the strategy as more than a climate plan. "To power a net-zero economy, we need to build more in the next 25 years than we have in the last hundred," he said at the June 25 launch. "This strategy isn't just about climate; it's about energy sovereignty and ensuring Canadians aren't left behind by fluctuating global gas prices."
Total grid investment needed could reach between $600 billion and $1.1 trillion over the next 25 years, according to the Public Policy Forum. Goldy Hyder of the Business Council of Canada said the biggest hurdle is permitting speed, arguing that if Ottawa can cut the approval timeline for a transmission line from 10 years to five, "the capital will flow."
Alberta Pushes Back as Provinces Eye Carrot-and-Stick Funding
Not everyone is on board. Alberta Premier Danielle Smith has called federal grid timelines "unachievable" and "unconstitutional," threatening to use the Alberta Sovereignty Act if Ottawa's rules step on provincial resource powers, according to The Globe and Mail. Saskatchewan has also resisted, with critics from the Conservative Party calling the strategy "expensive federal overreach."
The federal government has built a clear incentive structure: provinces that sign onto the Intertie Framework unlock access to billions in clean electricity tax credits. Those that opt out face higher costs to meet federal emissions rules on their own. CBC News has reported this dynamic as the dominant tension that will shape federal-provincial relations for years ahead.
Indigenous Communities and Remote Towns Stand to Gain Most
Many remote and Indigenous communities across Canada still rely on diesel generators — expensive, polluting, and unreliable. The National Electricity Strategy lists Indigenous-led projects as a priority for federal loan guarantees. Guy Bruce, President of the First Nations Power Authority, says Indigenous Peoples "must be equity owners in the transmission lines that cross their traditional territories," not just consulted after the fact.
Environmental groups largely welcomed the plan but flagged one key risk. Caroline Brouillette of Climate Action Network Canada warned that the strategy "must not become a loophole for extending the life of natural gas plants under the guise of reliability," according to The Hill Times. The success of the whole effort, analysts say, still hinges on whether provinces can set aside decades of jurisdictional rivalry and actually sign on.
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