Prime Minister Mark Carney announced on Thursday a new clean electricity strategy with the goal of doubling Canada's electricity grid capacity by 2050. The move is intended to address the country's growing electricity demands, fueled by electric vehicles, data centers, and advanced manufacturing. The federal government will consult with provinces, territories, Indigenous groups, utility companies, and unions over the next few months to figure out the best path forward.
The strategy, dubbed the National Electricity Agenda, includes investments in infrastructure for electricity generation, transmission, distribution, storage, and grid modernization. It also aims to connect Canada's fragmented grids from east to west via new and expanded transmission lines. According to government sources, the plan intends to "keep energy reliable and affordable in the short-term as Canada shifts to cleaner fuels over time" and promises to lower energy costs for 70% of Canadian households by 2050.
Doubling the grid's capacity will require over $1 trillion in investment over the next 25 years. Carney emphasized the need for diverse energy sources, including hydro, nuclear, wind, solar, some natural gas, carbon capture, and geothermal. The strategy also acknowledges the importance of natural gas in providing baseload and operational flexibility, noting that Canadian natural gas has one of the lowest emissions intensities globally.
The project is expected to create 130,000 high-skilled jobs by 2050, with 30,000 of those positions materializing by 2028. Carney stated that the government would offer tax credits and bring back energy-saving retrofits for up to a million homes, funded through loans, grants, and other measures. The announcement signals a shift from the previous Liberal government's strict decarbonization policies, with Carney stating the aim is not to pursue "absolute purity in generation".
