August M
Canada is preparing a massive overhaul of its electricity network as rising energy demand places increasing pressure on the country’s power systems.
Prime Minister Mark Carney announced a strategy worth C$1 trillion aimed at doubling Canada’s electricity grid capacity by 2050.
Power demand rising
According to Reuters, Canada’s electricity systems are facing growing strain from industrial expansion, artificial intelligence data centres and wider electric vehicle adoption.
At the same time, electricity production has declined in some areas due to droughts affecting hydroelectric generation and the closure of coal-fired .
Carney said the investment push is also tied to national energy security and long-term economic growth.
Reducing US reliance
The plan comes as Canada seeks to reduce dependence on trade links with the United States following tariffs introduced by President Donald Trump.
Reuters reported that Canada’s regional electricity grids currently trade more power with the US than with each other.
Data from the Canada Energy Regulator shows American electricity imports into Canada have risen every year since 2020.
Grid connections
The strategy includes new investment tax credits designed to encourage the construction of east-west electricity interties connecting provincial power grids.
Canadian officials say the expanded network would improve reliability and help move electricity more efficiently across the country.
The government also plans to adjust clean electricity regulations to allow greater flexibility for existing natural-gas-powered plants.
Energy transition
The move softens some rules introduced under former Prime Minister Justin Trudeau, which several provinces criticised as too restrictive.
Alberta and other regions reliant on natural gas had argued the regulations threatened grid stability.
Carney said natural gas would continue to play a supporting role, but added that future investment would focus mainly on hydropower, nuclear energy and renewables.
Sources: The Express, Reuters, Canada Energy Regulator
