Prime Minister Mark Carney says Canada will launch a National Electricity Strategy aimed at doubling the country’s electricity grid capacity by 2050, as rising demand from industry, artificial intelligence, electric vehicles and clean technology puts new pressure on power systems across the country.
The plan, announced Thursday in Ottawa, will begin with consultations involving provinces, territories, Indigenous Peoples, utilities and unions. The federal government says the strategy will focus on producing more power, strengthening transmission links between regions, expanding the skilled energy workforce and increasing domestic manufacturing for grid-related technologies.
Ottawa says Canada already has an 80 per cent clean electricity grid and some of the lowest electricity costs in the G7, but demand is expected to double by 2050 as the economy becomes more energy intensive. The federal government says the strategy aims to secure affordable, reliable and lower-emission electricity for households and businesses.
The plan carries major financial implications. The grid expansion strategy has been estimated at about $1 trillion, underscoring the scale of investment needed to modernize Canada’s power system. The government argues the investment is necessary to protect energy security, keep electricity affordable and support Canada’s industrial competitiveness.
A key part of the announcement is Ottawa’s intention to adjust clean electricity regulations to allow more flexibility, including the use of natural gas, while still working toward a cleaner power system. The government says this approach is needed to keep energy reliable and affordable during the transition.
The strategy also promises up to $15 billion in total energy savings by 2050 and lower total energy costs for seven in 10 Canadian households, according to the Prime Minister’s Office. Ottawa also plans to expand support for energy-saving retrofits for up to one million homes, including help for households switching from propane, oil and electric baseboard heating to heat pumps.
Carney’s government says Canada’s fragmented provincial and territorial grids cost the country through outages, duplicated infrastructure and wasted power. The strategy will examine new and expanded east-west-north transmission connections to move electricity more efficiently across the country.
The government also says doubling the grid will require more than 130,000 skilled workers by 2050. Consultations will look at training, recruitment and retention across the electricity sector.
“In a rapidly changing and more volatile world, Canada is taking control of our future,” Carney said. “With our new National Electricity Strategy, we will build at scale and speed to double our grid and power Canada strong with clean, affordable, reliable energy for all generations. When we master energy, we master our destiny.”
Ottawa says work is already underway through major electricity projects, including hydro developments in the North, new nuclear generation in Ontario, transmission expansion in British Columbia and wind development in Nova Scotia. The next test for the strategy will be whether federal, provincial and industry partners agree on who pays, who builds and how fast Canada’s power grid expands.
