VANCOUVER, B.C., June 17, 2026 — Canada risks losing billions of dollars in industrial investment unless it accelerates the expansion of its clean electricity systems, according to a new report released by the Canadian Climate Institute.
The report, Power Play: How to Supercharge Canada’s Clean Electricity Advantage, concludes that access to reliable, affordable clean electricity could become one of Canada’s strongest competitive advantages in attracting major projects such as mines, data centres, and advanced manufacturing facilities. However, current planning frameworks and market structures are not keeping pace with growing demand.
Researchers examined electricity systems in Ontario, Quebec, Alberta, and British Columbia, which together account for more than 75% of Canada’s industrial electricity demand. The study found that most provinces are not planning enough new generation or transmission infrastructure to support expected industrial growth.
According to the report, technologies such as wind, solar, and battery storage are now among the fastest and most cost-effective options for meeting new electricity demand. Despite this, Canada continues to lag many international jurisdictions in deploying these resources at scale.
The Institute argues that existing electricity planning models were designed for a different era and are limiting investment in both grid infrastructure and industrial development. It also highlights the need for stronger federal support for interprovincial transmission projects, which can improve grid flexibility and maximize the use of renewable energy resources.
The report emphasizes the critical role Indigenous communities play in Canada’s energy future. Indigenous governments already hold equity positions in hundreds of electricity projects and are expected to be key partners in future grid expansion efforts.
To strengthen Canada’s clean electricity advantage, the Canadian Climate Institute recommends that the federal government:
Establish a national framework for interprovincial electricity planning and coordination;
Expand financing and funding tools to support transmission and generation projects;
Advance amended Clean Electricity Regulations to provide long-term policy certainty for investors; and
Increase support for grid flexibility measures, including industrial demand management programs and battery storage deployment.
The findings come as the federal government develops its national electricity strategy and seeks input on how to meet the country’s goal of significantly expanding electricity infrastructure.
The report notes that failing to build sufficient clean electricity capacity could cost Canada between $110 billion and $220 billion in potential capital investment. Meanwhile, renewable energy costs continue to decline, with solar costs falling 84%, wind costs dropping 56%, and battery storage costs declining 27% over the past year.
The Canadian Climate Institute plans to release additional reports later this year focused on recommendations for provincial governments and utilities.
Comments