FINWIRES · TerminalLIVE
FINWIRES

Canada Launches National Electricity Strategy to Double Grid Capacity by 2050

By

Canada's Prime Minister, Mark Carney, on Thursday announced a national strategy to double Canada's electricity generation capacity by 2050, while signaling the federal government will ease clean electricity rules to allow greater flexibility for natural gas generation.

In a statement released by the prime minister's office, the government said Canada must respond to rising electricity demand driven by industrial growth, artificial intelligence, and electrification by building what it called a more "affordable, competitive, and sustainable" economy.

"Electricity is the clear solution to Canada's energy security, affordability, and competitiveness," the statement said, adding that national electricity demand is expected to double by 2050.

The government said it is launching consultations with provinces, territories, Indigenous groups, utilities, and unions to develop the strategy, which aims to expand generation, transmission, storage, and grid modernization across the country.

According to the statement, the strategy could lower total energy costs for seven in 10 Canadian households and deliver up to 15 billion Canadian dollars ($10.9 billion) in energy savings by 2050. It also said achieving those savings would require "a willingness to use a wide range of energy - including natural gas."

"That's why we intend to adjust clean electricity regulations to provide the flexibility needed to keep energy costs for all Canadian families reliable and affordable, while reducing emissions and building the clean energy system of the future," the statement said.

Bloomberg reported that the total cost of expanding Canada's electricity grid is expected to exceed C$1 trillion ($729 billion), with costs shared among federal and provincial governments and private-sector investors.

The strategy contains a few concrete measures and instead focuses on consultations over the coming months.

"Doubling our grid will not be easy. The scale is huge, the timeline short, and the task of getting the right mix of power complex," Carney said at a news conference in Ottawa, according to Bloomberg.

"Get it wrong, and Canadians will pay higher utility bills. Be too timid, and Canadians will end up short of power - losing good jobs and growing reliant on foreign suppliers," he reportedly said.

The strategy outlines four main priorities: expanding electricity infrastructure, improving east-west and northern transmission connections between provincial grids, training more than 130,000 skilled workers needed by 2050, and increasing domestic manufacturing of grid technologies.

The prime minister's office said the government would also expand financing and grants for energy-saving retrofits for up to one million homes, including support for replacing oil, propane, and electric baseboard heating with electric heat pumps.

Bloomberg reported that the announcement came ahead of an expected industrial carbon pricing agreement with Alberta tied to a proposed west coast oil pipeline and the Pathways carbon capture project in the oil sands. Carney said the government would support a pipeline capable of transporting at least one million barrels per day of what he described as "low-emission Alberta oil" to new markets.

Related Articles

Commodities

Snam Reports Higher Q1 LNG, Pipeline Gas Volumes; Investments Jump

Snam reported Q1 earnings Wednesday, showing total gas injections of 16.31 billion cubic meters for Q1, up from 15.22 bcm a year earlier.Pipeline gas imports were 10.29 bcm for the quarter ended March 31, up from 9.81 bcm a year earlier, while national gas production fell to 0.71 bcm from 0.88 bcm.Gas inflows through Mazara del Vallo increased to 5.59 bcm in the first quarter from 5.42 bcm a year earlier, Snam said.Passo Gries gas inflows increased to 1.80 bcm in the first quarter from 1.50 bcm a year earlier, while Melendugno volumes rose to 2.42 bcm from 2.34 bcm.The company reported LNG inflows of 5.31 bcm for the quarter ended March 31, up from 4.53 bcm in the year-ago period.The company imported 2.32 bcm through Adriatic LNG in Q1, up from 2.26 bcm a year earlier, while Piombino LNG volumes rose to 1.11 bcm from 1.05 bcm.The company reported OLT LNG volumes of 1.12 bcm for the quarter, up from 1.08 bcm in the year-ago period.Snam said Italian gas demand reached 21.83 bcm in the quarter, compared with 21.72 bcm a year earlier, as thermoelectric demand increased to 7.13 bcm from 7.01 bcm.Snam advanced the Adriatic Line Phase 1 project to 80% completion during the quarter.The company raised Q1 investments to 991 million euros ($1.16 billion) from 361 million euros a year earlier.

Commodities

US Natural Gas Update: Futures Gain Ahead of Storage Data on Weather Forecast Shift

US natural gas futures maintained earlier gains in after-hours trade on Wednesday as warmer weather forecasts and expectations for stronger cooling demand offset lingering concerns about ample inventories.The front-month Henry Hub natural gas and the continuous futures contract both climbed 0.88% to $2.868 per million British thermal units.According to Barchart, natural gas prices gained support after forecasts shifted toward above-normal temperatures across key regions of the US.Above-average temperatures are expected across the Midwest and Southwest through May 17, potentially boosting demand from electricity providers for air conditioning, Barhcart said, citing information from the Commodity Weather Group.A decline in natural gas output also supported higher futures prices on Wednesday, Natural Gas Intelligence said Wednesday.US gas production averaged 109.8 billion cubic feet per day on Wednesday, up 3.1% from a year earlier, according to BNEF data cited by Barchart.Lower-48 gas demand rose 6.0% year-over-year to 67.8 Bcf/d, while estimated LNG net flows to US export terminals slipped 1.9% week-over-week to 17.3 bcf/day, data showed.Meanwhile, traders awaited the US Energy Information Administration's weekly storage report, due on Thursday.Analysts surveyed by The Wall Street Journal expect an 87 Bcf injection for the latest week, which would leave inventories 142 Bcf above the 2021-2025 average, compared with the prior week's surplus of 139 Bcf.The WSJ cited EBW Analytics as saying two more "supportive" EIA storage reports are likely before triple-digit injections return by the end of May.

Commodities

US Biofuels Update: US-China Trade Summit Underpins Soybean Futures Market

Biofuels feedstock futures closed mixed on Wednesday, as the soybean market remained supported by the start of the US-China trade summit.The Chicago Board of Trade July soybean futures contract closed 0.18% higher on Wednesday at $12.29 per bushel, while the CBOT July soybean oil futures contract settled 1.38% lower at 75.36 cents per pound.The Nymex June ethanol futures contract settled 1.81% higher on Tuesday at $1.96 per gallon.Rhett Montgomery, DTN analyst, said the new-crop soybean futures reached another 2026 high for the contract at $12.07 per bushel."Soybean futures were higher for a fourth straight session on optimism as President Trump arrives in China for meetings with China's President Xi," Montgomery said in a daily note.He added that soybean futures also drew support from cuts to old crop US supplies by the US Department of Agriculture on Tuesday, and the "borderline bullish" outlook for 2026-27, dependent on where production lands.On Wednesday, the Energy Information Administration reported that for the week ending May 8, US ethanol production averaged 1.08 million barrels per day, above 1.02 mmb/d last week and 993,000 b/d a year ago.The four-week average output at 1.04 mmb/d was above 1.02 mmb/d during the same time last year.Domestic ethanol inventories ended the week at 24.9 million barrels, below 26 mmbbls a week ago, and below 25.4 mmbbls a year ago.Meanwhile, US House lawmakers were scheduled to vote on a measure that would allow nationwide, year-round sales of E15-blended gasoline. If the measure passes the House, it will be sent to the Senate.