Issue 85 - January 2026
Ringing in the new year with Electricity Canada!
Electricity Canada is kicking off the new year and ready to take on new challenges! Current Affairs sits down with our President and CEO Francis Bradley to discuss 2026 predictions, opportunities on the horizon and of course, the Flux Capacitor podcast.
Hi Francis, thank you for joining us! Last year when we interviewed you about the year ahead in 2025, you said the big issues were going to be political change and meeting growing demand. How do you think those predictions went?
I think we, as a sector, encountered both!
On the Canadian side of things, at the very beginning of the year, there was this assumption that we were going to be facing a landslide victory by the Conservatives and it would be a wholesale change. In the end that didn't happen. We had another Liberal government elected, but it is a very, very different Liberal government and it has a very different approach to all of the files that are of interest to us.
Politically, we have moved beyond talking about how the future is going to be different. We have a government that seems to be interested in trying to address some of the changes that are going to be required for us to be able to meet those challenges in the cross-border issue.
This time last year, we were facing the possibility of tariffs because the President-Elect who was not yet President at the time, was musing about the potential for tariffs. And of course, we've seen tariffs, and they have had significant impact on the Canadian economy as a whole.
In terms of growing electricity demand, we have seen in some quarters a little bit less demand because we have at least one quarter of an economic downturn in the country. Some sectors are feeling it, but on the other hand, we've now got a better idea of what the rise of artificial intelligence is going to mean for the electricity. We don't know exactly all the contours of that, but the two things that we do know, number one, we're going to see even more demand than we thought for data centres and hyperscalers. And two, we have a government in Ottawa that seems very determined that we will have a sovereign AI sector in this country, which was not something that was part of the lexicon even a year ago.
What is that going to mean for electricity demand going forward? Over the years we have talked about how critically important reliability is, but when electricity is meeting barely more than 20% demand of end use energy in this country, reliability is important, but it is not as important as it will be in the future when electricity meets far more of end use energy demand which is the way that AI is powered in the future.
I think the critical need for reliability will only be greater because of our increasing reliance on AI. And it sounds as though there’s a political desire here in Ottawa to make sure that there is the sovereign approach to data centres, artificial intelligence, and our Canadian electronic infrastructure in the future. We don’t know exactly what it’s going to look like, but it is going to be huge.
What do you think will be facing the electricity sector in 2026 besides data centres and hyperscalers?
It is going to be greater demand and how we accommodate that greater demand in the context of ensuring that we have sovereign capability in different critical sectors. It isn't just AI. I've spent time on the Hill last week on the issue of steel- every G-7 country has a strong domestic steel sector. We are facing some significant challenges, however Canada has so much natural resources to be able to fuel a steel sector. While we're seeing some short-term challenges with recent layoffs announced at Algoma, but the long-term prospect is going to be very positive.
The challenges that we've been facing from an international trade standpoint are short-to-medium-term. Over the long-term Canada has the resources and has the energy to be what our current government wants us to be - a superpower in these spaces. Whether it's electricity or critical minerals or just the non-critical minerals.
While rhetoric sometimes coming from the White House is "we don't need anything that Canada has”’, we know that that is demonstrably not true.
We're a year into Electricity Canada's strategic plan focused on Economic Growth and Optimization, Resilience and Energy Security. How are we as an association building on these "big rocks"?
We’re in a place right now where our board committees are now getting off the ground, are up to speed and have a deeper understanding of what we are doing in our councils and committees.
For the three strategic goals, I think what we're going to see in 2026 is very direct and specific strategic direction coming from these board committees that will help us be even more focused, more targeted, and therefore more effective in those three areas that you mentioned, growth and optimization, resiliency and security.
We’ve already started seeing the first steps in late 2025 when for example, the Security Committee has been particularly active, and we now have more of our CEOs who have security clearances. We have begun a cycle in November of this year, the first will be a series of classified briefings for our board members. The Security Committee is starting to look a lot like the Electricity Sub-sector Coordinating Council (ESCC), in the United States where we bring CEOs together with the most senior people in government to address the most critical issues of the sector.
We also have examples in the two other committees where we're seeing CEO level engagement on these issues and our organisation is benefitting from that engagement by having a clear focus and an ability to speak more clearly as an advocate for the sector.
There's a lot of challenges and opportunities ahead in 2026. What are the challenges you think the sector should watch out for, and what are the opportunities that excite you?
I think the biggest challenge from a federal policy perspective has everything to do with how the government could or should be helping us to build for the future demand. And whether they're going to make it easier reduce the challenges with respect to siting or not. I think Bill C-5 (The One Canadian Economy Act) sends all the right messages that this is a government that is determined that we're going to get big things done. There are still a couple of issues however, number one, Bill C-5 only addresses a small number of national projects deemed of national importance. Our ability to meet the challenges of the future are not going to be dependent on a small number of major projects, but a large number of medium sized and smaller projects like the refurbishment of existing facilities.
Secondly, is the challenge of addressing the fundamental challenges we have with respect to getting things sited and the duplication of regulatory processes within different government departments. We still have pieces of legislation like the Clean Electricity Regulations, the Fisheries Act, the Impact Assessment Act and the Navigable Waters Act that our members are continuing to trip over to get things done.
The opportunities are that we know that demand is going to increase and it's going to continue to increase despite a step back in the United States from commitments to environmental protection and decarbonization. We know that customers are continuing to electrify whether it is transportation, whether it is home heating, whether it is greater automation. And so, the opportunities of a growing electricity sector are real. I'm very positive when looking towards the future, that combination of what's going to be a growing electricity sector and a federal government that is publicly saying it wants to help get projects moving forward more quickly shows that we're going to continue to see a real acceleration of projects in this sector.
Give us a sneak peek of the Flux Capacitor in 2026.
We are ending 2025 with 130 podcast episodes and 2026 will actually be our organisations 135th year! I think what the listener will be hearing different next year is a bit of a step back to more in-person conversations and I think fewer conversations on Zoom.
I did a couple of podcasts in 2025 that were in person, and they felt like better conversations. As I discussed with Allan Danroth on episode 130, we spent the last five and a half years sitting in front of our computer screens and it makes all the difference in the world from a communication and building relationship standpoint to actually have conversations with people in real time, in person.
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