Hydro Quebec employees work on power lines in Montreal, on April 7, 2023 (Andrej Ivanov/AFP via Getty Images)
“To achieve its goal of a net zero electricity sector by 2035 Canada will need 121 terawatt hours of new supply to replace carbon sources,” Energy NL wrote in the submission, as reported by Blacklock’s Reporter. It says this amount of electricity generation is equivalent to that of “four Churchill Falls.”
The province’s Churchill Falls generation station is Canada’s second-largest hydroelectric plant, after the Robert-Bourassa generating station in northwestern Quebec.
“To meet net zero 2050 targets Canada’s electricity generation capacity needs to grow by two to three times bigger than today,” said the submission. “To meet Canadian demand and replace carbon-based sources Canada needs new hydro facilities equal to four Churchill Falls.”
Energy NL, representing over 460 member organizations in Newfoundland and Labrador’s energy sector, said that achieving the 2050 net-zero emissions objective won’t be possible without multi-faceted support from the government. This assistance should encompass financial, legislative, and policy support.
The federal government released on Aug. 10 a draft proposal of Clean Electricity Regulations (CER). The CER aims to achieve net-zero emissions by “electrifying” more sectors of the economy that rely on fossil fuels, including transportation, home and water heating, and industrial activities.
The proposal has ignited jurisdictional debates between Ottawa and the provincial governments of Alberta and Saskatchewan, particularly regarding the removal of natural gas from their energy grids. If approved, the proposed regulations stipulate that, with few exceptions, electricity-generating facilities using any amount of fossil fuels must cap carbon dioxide emissions at 30 tonnes per gigawatt hour annually by Jan. 1, 2035.
About 90 percent of Alberta’s electricity is generated from coal and coke (36 percent) and natural gas (54 percent), while only 10 percent is from renewables, such as wind, hydro, and biomass. The same goes for Saskatchewan, where 81 percent of the province’s electricity is produced from natural gas (40 percent) and coal and coke (41 percent). The remaining 19 percent is produced mainly from hydroelectricity (15 percent).
The CER also affirmed that provinces heavily dependent on coal and natural gas will witness ratepayers shouldering an increase of up to 15 percent in their electricity bills. The Canadian Electricity Association has estimated utility refits would cost $350 billion at ratepayers’ expense. The Department of Environment also projected the expenses for replacing old facilities and increasing power production capacity will exceed $400 billion by 2050.
Provinces that rely more heavily on emitting technologies for electricity generation can expect higher incremental rate increases, as highlighted in a Regulatory Impact Analysis Statement, reported Blacklock’s Reporter.
The analysis notes that it is expected that most of the expenses incurred by electric utilities would ultimately be passed on to consumers. This scenario might lead to lower-income households using a comparatively larger proportion of their overall income to cover these costs in comparison to higher-income households.
According to the analysis statement, by 2040, rate hikes would average $485 more per year in Nova Scotia, $154 in Alberta, $111 in Saskatchewan, and $55 in New Brunswick.
Isaac Teo contributed to this report.