People walk down a path snaking through Toronto's Finch Hydro Corridor on Thursday.Cole Burston/The Globe and Mail
The federal government announced Thursday it has begun consultations with provincial and territorial governments, utilities, unions and Indigenous peoples to develop a national strategy to double the size of Canada’s power grid.
Although dubbed a “national electricity strategy,” the announcement largely reiterated long-standing federal priorities such as beefing up interties between provincial electricity grids, accelerating regulatory approvals for large projects and supporting nuclear power.
But federal presentations and documents also struck a few new notes. The government wants to strengthen domestic manufacturing of components such as transformers and wind turbine towers, and to address labour shortages in the electricity sector. The government also signalled a new enthusiasm for natural-gas-fired generation.
Speaking in Ottawa, Prime Minister Mark Carney said Canada could double power generation by 2050 through “massive investment” and borrowing “using our AAA balance sheet” to ensure the costs do not unduly fall on ratepayers’ shoulders.
“If we get it wrong, Canadians will pay higher utility bills,” Mr. Carney said.
“If we’re too timid, Canadians will end up short of power, losing good jobs and growing reliant on foreign suppliers.”
The Canadian Press
In a briefing for reporters, federal officials said that although no deadline has been set, consultations will take place over the next four months, and new initiatives could be announced by the fall.
They said electricity accounts for about one-fifth of all energy use in Canada. Most of the country’s greenhouse gas emissions come from other forms of energy; officials said much of that consumption could be switched to electricity.
Some observers, including environmental advocacy groups and energy think tanks, noted the government’s failure to articulate much in the way of an actual strategy to achieve its stated objectives.
Dale Beugin, executive vice-president of the Canadian Climate Institute, said, “I would think of this [as] more of a vision document and less of a policy package.”
“This strategy is now the centrepiece of the federal government’s climate plan,” said Chris Severson-Baker, executive director of the Pembina Institute, in a statement.
“This must move from discussion paper to an implementation plan with a very substantial budget allocation by the fall to translate into meaningful benefits for Canadians.”
Opinion: Ottawa wants to double electricity supply. Provinces will determine whether it happens
One apparent departure from previous federal orthodoxy was rising enthusiasm for natural-gas-fired generation, which one federal document asserted “can play a useful role.”
Gas-fired generation has been a flashpoint for energy policy conflict for several years. Alberta took Ottawa to court over the constitutionality of the Clean Electricity Regulations, which were penned by the previous federal Liberal government and laid out a plan to decarbonize electricity grids.
Alberta objected to the requirement that new gas-fired plants include carbon capture equipment, which could greatly increase their cost. Premier Danielle Smith argued that Ottawa’s goals were not only unworkable, but they breached provincial jurisdiction.
Ottawa suspended Alberta’s participation in the regulations as part of a memorandum of understanding signed by both governments in November, with the proviso that the province increase its industrial carbon price. (Mr. Carney and Ms. Smith will sign a deal on Friday that will see Alberta institute a $130-per-tonne carbon price by 2040.) The agreement also laid the conditions for construction of a new oil pipeline to the West Coast.
The Prime Minister said the government intended to “adjust” the regulations, which some observers interpreted as a signal it will facilitate construction of new gas plants, thus locking in increased emissions.
“The point is that if you’re building these things, they’re pretty capital intensive, and they are going to be around for a long time,” Mr. Beugin said.
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Evan Pivnick, associate director of public affairs at Clean Energy Canada, said natural gas “definitely has a role to play,” particularly as a variable power source that can adjust output to balance minute-to-minute shifts in supply and demand. However, he said the government’s statements Thursday “overemphasized” the role of gas at the expense of preferable alternatives.
“It doesn’t in the same way talk about the role of renewables and batteries, and the growing importance of those as low cost, secure, clean alternatives,” he said.
Mr. Carney said natural gas’s role would be “dwarfed in scale” by investment in clean energy via hydro, nuclear and renewables.
The government also reiterated its support Thursday for increased interconnections between provincial power grids, which today generally trade only small amounts of electricity. Mr. Carney announced it had referred the Transmission InterConnect Investment Strategy to its new Major Projects Office, which Ottawa established last year.
Mr. Pivnick said that while virtually nothing is known about that initiative, he welcomes the referral because it suggests transmission is a key priority worthy of federal financial backing.
Merran Smith, the president of New Economy Canada, said she will look for various accountability mechanisms as the policy develops, and budget money to ensure Ottawa follows through on its plans.
“This is building a grid for generations, and we can’t put the costs on consumers today. It needs to be spread over the long term, and that means government investment,” she said.