Issue 76 - April 2025
Increasing Generation
Electricity Canada’s Generation Council met in Ottawa on March 18-19 to discuss best practices, challenges and opportunities in creating a reliable electricity grid for all Canadians. The first step? Building more of it! Current Affairs sits down with Brittany Botting, Director of Generation at Electricity Canada to learn more.
Hi Brittany, thanks for joining us! How can Canada prepare for future load growth?
With a growing population, increasing housing supply, electrification of industry, AI, electric vehicles and so much more! Meeting this load growth will require building out more electrical infrastructure faster than we ever have before. Estimates peg the annual investments into our grids needed to keep up with demand at $55 billion and growing.
To move at the pace and scale that is needed, investors need more certainty. Canadian governments need to systematically remove the barriers to building and ensure the rules are clear, predictable and practical. Governments should be looking for ways to invest in the grid through things like the Investment Tax Credits or low-cost, repayable loans. And there needs to be an understanding of the opportunity that comes with investing in our electricity grids today to build a cleaner, more resilient and more secure energy system that will be the backbone of our future economy.
What are the biggest obstacles to increasing electricity generation in Canada?
When it comes to increasing electricity generation members must strike the appropriate balance between affordability, reliability and sustainability. There are many factors that go into making an investment decision and each decision point can be met with obstacles. To get the point where there are shovels in the ground there a few hoops to jump through:
- Capital – generation projects can have long lead times and are incredibly expensive. Companies must be able to secure the necessary capital to move forward with an investment.
- Regulatory – new generation projects must go through a number of assessments and obtain a number of permits to move forward.
- Technological – while some generation technologies have been around for a while, some are still emerging. This comes with a whole host of technical and logistical questions that must be solved before implementation.
- Community support – new generation projects are significant infrastructure projects that require support from local communities and Indigenous groups to be successful.
- Logistical – supply chain delays and labour shortages are widely seen across the sector and must be factored in as well.
How are Electricity Canada Members tackling these issues?
At our last Generation Council meeting I was really struck by the degree of collaboration that is occurring between our members to solve some of these problems. For example, our member from the Yukon Energy Corporation shared how they are were able to piggyback on a purchasing order ATCO had made for some critical components in order to move up the supply chain queue. Or, on a much larger scale, the new MOU for Churchill Falls is spurring all sorts of collaborations between Hydro Quebec and Newfoundland and Labrador Hydro that will expand capacity in both those provinces.
Why is energy security so important, and what do we need to do get Canada closer to achieving it?
Electricity underpins everything we do and Canadians so often take for granted that when you flip a switch, the lights will go on. Preserving this feeling for families and businesses under any circumstance is, in my opinion, what it means to have energy security.
The integrated North American grid has enhanced our collective energy security for decades, but with the threats coming from U.S. could possibly disrupt the two-way flow of electricity trade between our two countries. Canadians have had to pause and re-evaluate the state of our energy systems.
With this system being challenged, there is a need to shore up our domestic energy capacity to ensure we are resilient today and into the future. As a start, we need to get building to meet the demand for electricity we already know is coming. This may also be the time to think big and creatively about some of the industry’s sticky problems. For example, are there things that can be done to support the domestic manufacturing of critical electricity components? Are there opportunities for more east-west connections?
Fill in the blank - The electricity sector needs to _____________ in the next 10 years.
Build more electrical infrastructure .
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