G7 POWER SYSTEMS SCORECARD
COUNTRY PROFILE: CANADA1
May 2024

Synopsis
OVERALL COUNTRY SCORE: 264/400

Canada, with its significantly clean electricity grid and low-carbon capacity, iswell positioned to further decarbonise its grid. Canada is on track to phase out
coal fired generation by 2030, however, there is significant new unabated gas
fired generation being proposed in some provinces.
The upcoming Clean Electricity Regulations, Canada’s goal of 90% non-emitting
generation by 2030, Canada’s large emitter trading systems, and federal fundingfor clean energy investments are crucial for achieving a net zero grid by 2035.
While some provinces are also taking action and have announced targets foradding renewable capacity, others such as Alberta have been taking steps that
deter renewables deployment. Provinces reliant on gas fired generation inparticular can benefit from the reliability and affordability of a decarbonised grid.
They need to increase their renewable energy share, expand transmission,
enhance storage, promote end use flexibility, and improve energy efficiency.
Headline message – Benchmarks 1–2 (Section 1: Infrastructure/Energy mix)
SCORE: 81/120

Canada has one of the lowest emission power mixes in the world thanks to its
large hydropower capacity, with over 80% of generation coming from renewablesources or nuclear power. Variable renewables have ramped up in recent years
and, though the solar and wind pipeline is smaller than in most G7 countries,
given the significant existing clean base, the pipeline puts the country broadly on
track to 90% non-emitting electricity by 2030.
The deployment of solar and wind will be especially crucial for provinces without
sufficient hydropower resources, in particular Alberta and Nova Scotia.
Disappointingly, Alberta – the province that had led the country in wind andsolar growth – is now the sole province that is taking active steps to limit thegrowth of wind and solar.
1 To see the whole Scorecard, including the scoring methodology, visit https://www.e3g.org/g7-power-systems-scorecard

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: CANADAHeadline message – Benchmarks 3–5 (Section 2: Policies/Targets)
SCORE: 183/280

Canada's upcoming Clean Electricity Regulations are a key part of Canada’s
commitment to work towards a net zero grid by 2035. The funding measuresannounced by the federal government will also play a key role in realising thistarget. However, Canada's federative system of electricity means that provinces
are largely responsible for their own electricity systems. Therefore, they need tostep up their efforts to align with Canda's net zero grid by 2035 target. In
particular, provinces with significant emitting gas fired generation – Alberta,
Saskatchewan and Ontario – need to do more to reduce emissions.
Action is also needed at the provincial level to increase the share of renewableenergy in the electricity mix across the country. Provinces can optimise theirsystems and reduce the overall cost of decarbonisation via transmission
expansion, storage, digitalisation, promoting end use flexibility, retrofitting, andenergy efficiency.

Benchmark 1: Reducing fossil fuel reliance
SCORE: 35/60

Canada is home to a significantly clean electricity grid with 110 gCO2/kWhemission intensity. Although the overall share of installed fossil fuel electricity issmall, some regions rely significantly on fossil fuels to generate electricity, and asignificant amount of new gas fired generation is proposed in numerous
provinces. In 2022, gas and coal fired electricity accounted for 68.7% and 13.3%
of Alberta’s total electricity generation. During the same year, gas fired
electricity supplied nearly 46.4% and coal fired assets supplied nearly 34.5% of
Saskatchewan’s electricity.2 Canada also has a small yet significant share of otherlow-carbon capacity like nuclear on its grid.
1.1 New unabated coal and gas power plants in planning or construction
SCORE: 4/15

Canada doesn’t have any new coal power projects in the pipeline and is on track
to phase out coal fired power by 2030. However, around 6.3 GW of new
unabated gas capacity is in development (half of it already in construction),3
which would grow the existing gas fleet by about 25%.
2 NRCan Electricity Generation Shares data for 2022.
3 Global Energy Monitor, February 2024, Global oil and gas plant tracker

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: CANADA

1.2 Share in electricity generation: fossil fuels
SCORE: 12/15

Fossil fuels generate 17.39% of Canada’s total electricity.
1.3 Share in electricity generation: non-renewable low-carbon tech
SCORE: 4/15

Nuclear makes up 12.89% of Canada’s electricity generation. About half of thatfleet is nearing end of life, and refurbishments have been announced for many,though increased reliance on gas fired power is often looked to as the interim
power option.
1.4 Carbon intensity of power index
SCORE: 15/15

Canada’s carbon intensity of power index is 53.6, based on IEA’s CO2 emission
intensity, which indexed at 100 in year 2000.
Data from Environment and Climate Change Canada (ECCC) indicates that
Canada’s national electricity GHG intensity is 110 gCO2/KWh.4

Benchmark 2: Ramping up renewables
SCORE: 46/60

As of 2023, 67.4% of Canada’s electricity was generated by variable and nonvariable RES. With this strong head start, Canada is in a good position to
decarbonise its grid by adding more wind, solar, storage and other non-emitting
sources.
2.1 Share of variable RES in electricity generation
SCORE: 3/15

Variable RES make up 6.6% of total power generation, with 5.7% provided bywind and 0.9% by solar power.5
2.2 Share of other RES in electricity generation
SCORE: 14/15

4 ECCC Data Catalogue, May 2024, Annex 13 Electricity Intensity
5 Ember, Electricity data explorer (accessed May 2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: CANADAThe total share of non-variable RES in electricity generation is 61.7%. The
dominant generation source is hydropower with 60.4%, with biomass
contributing a further 1.29%.6
2.3 Variable RES pipeline capacity vs country’s announced target
SCORE: 14/15

Canada does not have a specific, legislated target for variable RES generation but
is aiming for 90% non-emitting generation on the grid by 2030. The current wind
power capacity is bound to almost double, and utility-scale solar capacity toincrease by a factor of six between today and 2030. Despite some uncertainty inthe renewables project pipeline, the projects that are already further towards
reaching the construction stage will enable Canada to reach its 2030 target of
90% clean electricity.
Some provinces, such as Ontario, are planning to procure more wind and solar(and battery storage), and the federal government has several incentives in place
to support wind and solar deployment. Alberta – the province that had led thecountry in wind and solar growth – is now the sole province that is taking active
steps to limit the growth of wind and solar.
2.4 Average permitting time for VRE
SCORE: 15/15

Average permitting wait time for RES was 180 days, including 1 year of
preparation time, and up to 6 months’ wait time for a decision on an application.

Benchmark 3: Adapting the power systems to highRES share
SCORE: 85/120

The primary challenge in the country is the work remaining for provincial
jurisdictions with significant fossil fuel generation, to put in place provincial plans
and measures to adapt to a grid that is predominantly powered by non-emitting
sources.
The share of variable RES is growing, albeit at different rates, across the country.
Several provinces have abundant hydro that can serve as long-term storage.
6 Ember, Electricity data explorer (accessed May 2024)

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However, to fully take advantage of this – along with variable RES – Canada
needs greater inter-provincial transmission capacity. A collaborative, interjurisdictional effort is needed to promote grid development.
The federal government has announced various initiatives to support RES,
including the Clean Electricity Regulations (key for Canada’s commitment to work
towards a net zero grid by 2035) and the investment tax credits. However,provinces, who are largely responsible for planning and delivering their own
electricity systems, have been lagging. This is especially true for provinces withhigh share of fossil fuel electricity. For instance, a 7-month long moratorium, andongoing uncertainty post moratorium, has disrupted RE development in Alberta,
at least in the short-term. Alberta and Saskatchewan have also pushed backagainst the Clean Electricity Regulations, without proposing reasonable
alternatives. Therefore, provinces should commit to achieving net zero grids by2035 and set explicit renewable energy and storage targets. This will send asignal to the markets and the system planners to chart pathways to achieve net
zero grids.
Context for Benchmark 3
In Canada, electricity is a provincial jurisdiction and there is no national planningbody or grid operator. There are provincial regulators, system operators andgenerators, with different provinces having varying degrees of deregulation. The
federal government can play a limited function in terms of providing funding
support, capacity building, convening, approving certain projects, andcollaborating on interties.
Historically, federal policies like the coal phase-out, combined with provincial
policies, have significantly reduced emissions in the electricity sector. Currently,
the federal government is finalising the Clean Electricity Regulations. However, it
is receiving significant pushback from the provinces, some of whom in-part are
arguing that the federal government is overstepping its jurisdiction.
Our assessment focuses on federal action and the action of two provinces –Alberta and Ontario – that have significant fossil fuel in their generation mix anda high potential for RES. In some cases, we also provided a score for otherprovinces, where data was on hand.
Alberta has a deregulated energy-only market where generation and distribution
are fully deregulated and transmission planning is done by the system operator.

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Ontario also has a deregulated market, however most of the electricity is stillprocured by the system operator.
3.1 Policies to limit curtailment to a minimum that ensures optimal RES
capacity utilisation
SCORE: 12/15

There are no federal policies targeting curtailment at the moment and nocurtailment data is available at national level. Overall curtailment rates are very
low in most of Canada’s provinces due to large shares of flexible generation,
notably hydro and gas.
Provinces

In 2020, Ontario curtailed 2,621 GWh of wind and solar, representing 17% of
total variable generation. In 2021, it curtailed 1,289 GWh,7 representing 12% of
total variable generation. The majority of the curtailment in Ontario is caused byinflexibility of nuclear: 56% of Ontario’s electricity generation comes from
nuclear plants,8 which are typically difficult to dispatch down. While there is no
way of knowing for sure, it is likely that wind and solar curtailment is done as alast resort after all other flexible generation – including gas, hydro, and imports –have been ramped down and all export options have been maxed out. The
Ontario Society of Professional Engineers welcomed Government of Ontario’s
decision to offer low overnight prices for charging electric vehicles,9 which it
believes will help stimulate new demand for currently curtailed electricity, andreduce the need to run some peaker gas plants. Ontario recently completed thelargest clean energy storage procurement in Canadian history which will help
reduce this curtailment.
The Market Surveillance Administrator (MSA) monitors wind and solar
curtailment in Alberta. In its Q3 2023 report, the MSA identified a significant
increase in curtailment rates year-over-year, increasing by a factor of five
between Q3 2022 (8.4 GWh) and Q3 2023 (43.9 GWh). In Q2 2023, curtailment
was an estimated 41.8 GWh.10 Relative total generation, curtailment in Q2 2022
was less than 0.1%, rising to 0.4% in 2023. The increase in wind and solar
curtailment in Alberta is driven by an increase in transmission congestion, as
7 IESO, Year-end data 2021 (webpage, accessed May 2024)
8 Canada Energy Regulator, June 2017, Market snapshot: Canada’s nuclear energy output ranked 6 th in theworld
9 Ontario Society of Professional Engineers, March 2022, Policy win – The Government of Ontario isinvestigating options for a new ultra-low overnight electricity rate
10 Market Surveillance Administrator, November 2023, Quarterly Report for Q3 2023

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: CANADA

renewables are being deployed faster than anyone – including the system
operator – had predicted. This issue is likely to persist, and potentially worsen, if
transmission planning and buildout does not accelerate.
Alberta and Ontario can take further steps to modernise their electricity grids toimprove their flexibility and reduce curtailment. This can be achieved throughseveral methods, such as procurement of energy storage capacity, including
long-duration storage; expanding import and export capabilities withneighbouring provinces and states; and implementation of energy efficiency
programs and demand side management programs. A 2023 analysis by Pembina
Institute of a decarbonised Alberta electricity grid found a significant reduction incurtailment would be achieved by doubling the intertie capacity between Alberta
and British Columbia (an increase of 1,100 MW). In fact, expanded export
capability would eliminate 2,119 GWh of wind curtailment (5% of total AB wind
generation) and 108 GWh of solar curtailment (4% of total AB solar generation).
3.2 Active steps by the national grid operator to plan for short spells of 100%
RE power
SCORE: 11/15

The provinces of Quebec, British Columbia, Newfoundland and Labrador, andManitoba, already run their grids with nearly 100% hydroelectric power. No
system operator in Canada that operates at the provincial level has set explicit
plans for managing short periods of 100% wind and solar power. However,
several provinces are planning on adding significant amounts of wind and solar
capacity to their grids (see indicator 3.7 for more details). Therefore, theseprovinces have significant experience with accommodating a high share of firm
renewables on their grids. However, as the share of variable renewables energy
rises, they may face new challenges.
Further, the system operators in Alberta11 and Ontario12 have both investigated
the impact of a net zero emissions grid and raised several reliability concerns
without specific pathways to address them.
Provinces that do not yet have 100% renewable grids can take two actions to doadvance planning for managing short periods of 100% renewable power. First,
they can formally commit to achieving net zero grids by 2035 in line with thefederal net zero grid target, and expand mandates of key institutions like system
11 Pembina Institute, July 2022, Pembina Institute response to AESO Net-Zero Emissions Pathways Report
12 Pembina Institute, May 2023, Exploring Ontario’s pathways to net-zero electricity

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operators and utilities to follow suit.13 Second, they can set explicit variable
renewable energy targets and instruct provincial regulators and system
operators to prepare provincial electricity systems to be able to accommodatehigh shares of variable renewable energy, or import renewable energy fromneighbouring provinces or states.
3.3 Effective policies to ramp up electricity storage
SCORE: 12/15
FederalGovernment of Canada has taken some steps in recent years on storage broadly.
The 2022 Fall economic statement saw the government announce a 30%
investment tax credit for investments into clean technologies.14 The Governmentof Canada announced a 15% clean electricity investment tax credit forinvestments in clean energy projects, including storage – battery storage,
pumped hydro storage, and compressed air – in budget 2023.15 This budget also
renewed funding for programs like Smart Renewables and Electrification
Pathways Program (SREP)16 and Canada Infrastructure Bank,17 which supports
energy storage projects. SREP has already committed to provide funding tosupport 2,300 MWh of energy storage capacity.18
Finally, Canada has significant hydroelectricity capacity spread across a few
provinces. There is a recognition at the federal level that Canada’s hydro capacity
can serve as long-term storage.19 Federal government can help unlock hydropower as long-duration energy storage by connecting hydro rich provinces like
British Columbia with solar and wind rich provinces like Alberta, by way of
promoting interjurisdictional coordination on inter-provincial transmission.
Provinces

Alberta’s energy-only electricity market structure does not generally incentivise
storage development. This is highlighted in the Alberta Electric System
13 Pembina Institute, September 2023, Supporting grid infrastructure investments and committing to a

net-zero grid
14 Department of Finance, 2022, Fall economic statement 2022
15 Government of Canada, last modified March 2023, Budget 2023 – A made-in-Canada plan: Strong middle

class, affordable economy, healthy future
16 Government of Canada, Smart Renewables and Electrification Pathways Program (webpage, accessed

May 2024)
17 Natural Resources Canada, 2023, Powering Canada Forward: Building a clean, affordable and reliable

electricity system for every region in Canada
18 Ibid.
19 Ibid.

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: CANADAOperator’s Long-term Outlook reports, which forecast the province’s energy
storage capacity plateauing at 500 MW in the next few years.20 Despite this,short-duration energy storage projects continue to dominate the AESO’s project
queue, showing upwards of 10x that amount applying for connection between
now and 2026. In the past five years, Alberta has grown its energy storage fleet
from 0 MW to 190 MW, all 1- to 2-hour lithium-ion batteries. Additionally, a
320 MW compressed air storage project with up to 48 hours of storage iscurrently undergoing the federal impact assessment process.21
In recent months, the Alberta government has also taken limited steps to
support energy storage. In May 2022, the Electricity Statutes (Modernizing
Alberta’s Electricity Grid) Amendment Act, received royal assent. The Act
includes a formal definition for energy storage in Alberta’s regulatory framework
and allows distribution and transmission facility owners to own and operateenergy storage facilities, though only under certain conditions. The bill was
proclaimed in March 2024.22
SaskPower, Saskatchewan’s crown utility corporation, is planning to add nearly
400 MW of battery storage capacity by 2035.23 SaskPower is currently in theprocess of adding the province’s first battery storage system capable of providing
20 MW of load for up to 1 hour.24 This project is funded in part by theGovernment of Canada.
Ontario has taken a leadership role in the Canadian energy storage space. In
2022, the Ontario government directed the province’s Independent Electricity
System Operator (IESO) to acquire a minimum of 1500 MW of electricity storage
resources,25 which represents the largest battery procurement in Canadianhistory, as part of a request for a total additional 4000 MW of capacity. The IESO
took action towards this goal in 2023, announcing the procurement of 880 MW
of energy storage from 15 different projects.26 However, based on the available
information, most of these projects provide only short-duration storage.27
20 AESO, May 2024, Long-term Outlook 2024
21 Government of Alberta, Marguerite Lake compressed air energy storage (webpage, accessed May 2024)
22 McClennan Ross, March 2024, Shifting currents: Modernizing Alberta’s electricity grid
23 SaskPower, November 2023, SaskPower response: Federal Clean Electricity Regulations
24 SaskPower, Battery energy storage system (webpage, accessed May 2024)
25 Government of Ontario, October 2022, Ontario building more electricity generation and storage to meetgrowing demand
26 Government of Ontario, September 2023, Ontario celebrated indigenous leadership in clean energy

storage
27 Northland Power, Oneida – Canadian battery energy storage (webpage, accessed May 2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: CANADAThe need for long-duration storage in Ontario has been identified. IESO’s
Pathways to Decarbonization report highlighted the need for deeper
understanding of the role of long-duration storage and its potential to reducereliance on gas.28 Ontario then responded with the Powering Ontario’s Growthplan, which committed to many no-regrets actions, including new andrefurbished nuclear, upgrading hydro plants, announcing procurement of morewind, solar and storage, including long-duration storage, building moretransmission capacity, and set a stronger target for energy conservation plus
committed to develop a plan to accelerate energy conservation. Ontario has also
limited all gas-fired generation contract end dates to 2040. A recent report
prepared for Energy Storage Canada found that deploying up to 6 GW of longduration energy storage (LDES) in 2032 could help address uncertainty aroundnuclear and hydrogen build-out and save ratepayers $11 to $20 billion over the
storage’s lifetime relative to the baseline scenario described in IESO’s report.29
The report recommends that IESO should start incorporating LDES into all futureplanning as an immediate no-regret move.
The rest of the hydro provinces will be able to utilise their hydro capacity as longduration energy storage as they integrate greater shares of variable renewableenergy into their energy mixes.
In conclusion, provinces that do not have significant hydro capacity can takeadvantage of long-duration battery storage by properly evaluating its benefits
and modelling long-duration energy storage as part of future planning. They may
also take advantage, through expanded transmission interties, of the inherent
storage potential in neighbouring provinces’ hydroelectric generation.
3.4 Effective policies to increase end use flexibility
SCORE: 10/15
FederalCanada wants to achieve 600 petajoules of total annual energy savings by 2030
via adoption of energy efficiency codes, standards, and practices.30 This is part ofthe country’s target under Sustainable Development Goal 7. The Canadianfederal government has taken limited steps toward achieving this target.
Through its SREP program, the government has funded some demand

28 IESO, December 2022, Pathways to Decarbonization
29 Dunsky for Energy Storage Canada, January 2024, Long duration energy storage (LDES) opportunity

assessment
30 Government of Canada, Sustainable Development Goal 7: Affordable and clean energy (webpage,accessed May 2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: CANADA

management projects.31 More recently, the federal government has beenencouraging provincial regulators to enable greater end use flexibility by funding
regulatory innovation research.32
Canada is also leading the International Smart Grid Action Network’s work
towards end use flexibility characterisation and grid utilisation.33
Provinces

Some provinces have taken steps to enable end use flexibility. The most popular
option is offering rate flexibility, though not all provinces offer this. Even in thosethat do, it is unclear what impact it has had on end use flexibility.
Ontario consumer electricity rates have varied depending on the time of use formany years. Electricity is more expensive during typical on-peak periods and lessexpensive during off-peak periods. There is also a third “mid-peak” rate for
periods in between. The timing of typical on- and mid-peak periods switchesdepending on the season, and overnight hours and weekends are always offpeak. The goal of the time-of-use (TOU) pricing is to incentivise load shift tohours when demand is low and can be met with non-emitting generation.34 A
2016 study found that TOU reduced electricity consumption during summer peak
hours by between 1.18 and 2.27% in 2012, 2013, and 2014 following the fullrollout of the program.35
In 2023, Ontario made another time-of-use option available to consumers called
the Ultra-Low Overnight (ULO) price plan, which is targeted towards electricvehicle users. In exchange for higher on-peak rates, electricity consumers who
opt into the ULO plan pay 67% less than regular TOU users during overnight offpeak hours. The goal of the ULO plan is to shift electric vehicle charging from onor mid-peak hours to overnight hours when the load can be serviced with nonemitting resources.36

31 Government of Canada, Smart Renewables and Electrification Pathways Program (webpage, accessed

May 2024)
32 Government of Canada, Energy Innovation Program smart grid regulatory innovation capacity building

call for proposals (webpage, accessed May 2024)
33 International Smart Grid Action Network, Flexibility markets (webpage, accessed May 2024)
34 Ontario Energy Board, Managing costs with time-of-use rates (webpage, accessed May 2024)
35 The Brattle Group for the Independent Electric System Operator, February 2016, Analysis of Ontario’s fullscale roll-out of TOU rates – Final study
36 Government of Ontario, April 2023, Ontario launches new Ultra-Low Overnight electricity price plan

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Alberta has shown limited initiative in enabling end use flexibility. The city ofGrande Prairie is set to undergo a pilot program with ATCO for time-of-use
electricity rates:37 an option that is not yet available in the rest of the province.
Similarly, FortisAlberta is conducting a pilot program for managed EV charging,which allows external control of consumer EV charging to manage peakdemands. Alberta also allows industrial load to opt into a program for load
shedding services that can be called upon by the system operator.38
In 2018, Yukon experimented with a residential demand response program that
reduced the use of residential electric and hot water heating during winterdemand peaks.39
Manitoba is also exploring time-of-use rates.40
British Columbia has a Peak Rewards program that rewards subscribing
customers for allowing BC Hydro to remotely adjust their thermostat, EV
charger, load controller, or battery energy storage system during peak events.41
Hydro Quebec has a dynamic rate option called Rate Flex D. During the winter,customers using this rate type pay below the base rate during off-peak hours,
but they pay a significantly increased rate during peak demand events. During
the rest of the year, consumers pay the regular base rate for electricity.
Consumers are notified of an upcoming peak demand event one day in advance.
Rate Flex D gives electricity consumers the opportunity to save money if they canmanage their load during peak events, reducing grid stress.42
3.5 Effective policies to accelerate grid development
SCORE: 8/15
FederalThe federal government has identified grid development as a priority andcontinues efforts to bring provinces together to develop regional
interconnections. It also has some funding available in form of clean electricity
37 ATCO, Time of use rates (webpage, accessed May 2024)
38 AESO, Load Shed Service for imports (webpage, accessed May 2024)
39 Natural Resources Canada, 2023, Powering Canada Forward: Building a clean, affordable and reliable

electricity system for every region in Canada
40 Global News, 30 January 2024, Manitoba Hydro says new power generation, time of use rates and moreare on the table
41 BC Hydro, Peak Rewards (webpage, accessed May 2024)
42 Hydro Quebec, Rate Flex D (webpage, accessed May 2024)

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investment tax credits,43 funds available via the Smart Renewables andElectrification Pathways Program,44 and loans available via the CanadianInfrastructure Bank.45 According to Canada Energy Regulator modelling,achieving a net zero economy in Canada by 2050 will require an additional 3495
to 4983 MW of inter-provincial transmission capacity by 2035.46 These modelledscenarios rely heavily on carbon capture, utilisation, and storage (CCUS)
technologies; intertie capacity needs will be even higher in scenarios with limited
CCUS use.
However, the challenge remains that provincial and territorial electricity grids
are regulated and operated independently and are often optimised without
interjurisdictional coordination. For this reason, there is momentum forprovinces to continue grid planning in isolation from one another. Also, in somecases interconnections may provide more benefits to one province, territory,
type of generator, or consumer group, giving other parties little motivation to
support the project unless new market structures add financial incentives, or
projects costs are divided proportionally to the benefits each participant will
receive. The development of new interties with other jurisdictions can also
threaten the economic viability of previous investments, leading to additional
hesitation.
Further, provinces are not developing the grid infrastructure at a pace or scaleneeded to decarbonise the economy on Canada’s stated timelines. Initiatives likethe Northeast Grid Planning Forum47 may help address some of the coordination
challenges for this kind of medium- and long-term planning, but are in the earlystages.
Additionally, the Minister of Energy and Natural Resources has established theCanada Electricity Advisory Council in May 2023, tasked with providing expert
advice on electricity related topics.48

43 Government of Canada, last modified March 2023, Budget 2023 – A made-in-Canada plan: Strong middle

class, affordable economy, healthy future
44 Government of Canada, Smart Renewables and Electrification Pathways Program (webpage, accessed

May 2024)
45 Natural Resources Canada, 2023, Powering Canada Forward: Building a clean, affordable and reliable

electricity system for every region in Canada
46 Data provided by the Canada Energy Regulator, July 2023.
47 Acadia Center, February 2024, The Northeast Grid Planning Forum: Uniting North Americans for our net

zero future
48 Government of Canada, The Canada Electricity Advisory Council (webpage, accessed May 2024)

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Alberta

Under section 15 of Alberta’s Transmission Regulation, the Alberta Electric
System Operator (AESO) is required to ensure that, under normal operating
conditions, the transmission system should allow 100% of in-merit generation to
be dispatched.49 However, the Ministry of Affordability and Utilities is now
considering changes to this policy, including a stipulation that new transmission
investments should only occur when the benefits outweigh the costs, orchanging the threshold for “normal operating conditions”, effectively increasing
the threshold of allowable congestion above zero.50 Due to the increasing risk oftransmission congestion in the province, the AESO has updated its approval
process, including an assessment of the impact of upcoming projects on theoperations of existing transmission infrastructure. These cluster studies areintended to inform future grid upgrade projects.
Ontario

The need for increased transmission capacity and early planning has been
identified by both the Ministry of Energy51 and the IESO.52 Infrastructure for theeast–west flow of electricity across the province is well developed and currently
undergoing upgrades, but electricity flow from south to north is limited by thecapacity of existing transmission lines. The Ministry of Energy has requested that
the IESO identify options for the development of additional transmission
corridors between the north and south to expand opportunities for electricity
generation projects in Northern Ontario. The IESO is also planning additionaltransmission lines into downtown Toronto in anticipation of growing demand
and the phasing out of a local gas generation plants.53 The IESO’s Pathways to
Decarbonization report found that the costs of transmission build-out to achievea decarbonised grid could range from $17 billion to $40 billion.54 Concrete
policies to accelerate this build-out have not been announced.
In conclusion, Canada’s federal government has a good level of focus on griddevelopment to achieve a net zero grid, but provinces and territories are notconsistently following suit. Greater collaboration between different levels ofgovernments and between jurisdictions will help advance grid infrastructuredevelopment. Further, within each province and territory, system planners
49 Government of Alberta, March 2024, Alberta Regulation 86/2007: Electric Utilities Act
50 Bankes, N., November 2023, Transmission policy in Alberta, ABlawg
51 Government of Ontario, 2023, Powering Ontario’s Growth: Ontario’s plan for a clean energy future
52 IESO, December 2022, Pathways to Decarbonization
53 Government of Ontario, 2023, Powering Ontario’s Growth: Ontario’s plan for a clean energy future
54 IESO, December 2022, Pathways to Decarbonization

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should plan for grid infrastructure development with the needs of a net zeroeconomy in mind.
3.6 Effective policies to enable the required digitalisation of power systems
SCORE: 12/15
FederalFederal government is taking a programmatic approach to prioritise
digitalisation. Natural Resources Canada, a federal department, has identified
grid digitalisation, specifically smart grids, as a priority in achieving Canada’s
decarbonisation goals. Since 2003, there has been $726m in public funding for
Smart Grid R&D projects across the country including demand management,
distributed energy resource management, EV integration grid monitoring andautomation, microgrids, and energy storage.55
Some other federal programs that support grid modernisation include:> Smart Renewables and Electrification Pathways Program ($922m over
4 years).56> Energy Innovation Program ($52.9m per year).57> Program of Energy Research and Development ($32m per year).
> Green Infrastructure Programs:58 Smart Grid Program;59 Energy Efficient
Buildings RD&D Program;60 EV Infrastructure Demonstrations Program;61
Clean Energy for Rural and Remote Communities Program.62
Ontario

Ontario’s electric system operator has a Smart Metering Entity,63 which is
responsible for the operation of the province’s Meter Data Management and

55 Natural Resources Canada, April 2022, Smart Grid in Canada 2020–2021
56 Government of Canada, Smart Renewables and Electrification Pathways Program (webpage, accessed

May 2024)
57 Government of Canada, Energy Innovation Program (webpage, accessed May 2024)
58 Government of Canada, Green infrastructure programs (webpage, accessed May 2024)
59 Government of Canada, Green Infrastructure Smart Grid Program (webpage, accessed May 2024)
60 Government of Canada, Energy Efficient Buildings RD&D (webpage, accessed May 2024)
61 Government of Canada, Electric Vehicle Infrastructure Demonstration (EVID) Program (webpage,accessed May 2024)
62 Government of Canada, Clean Energy for Rural and Remote Communities Program (webpage, accessed

May 2024)
63 IESO, Smart Metering Entity (webpage, accessed May 2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: CANADA

Repository. In 2014, Ontario had 4.8 million smart meters, accounting for 45% of
all electricity consumed in Ontario.64 More recent data indicates that Ontario has
over five million smart meters.65
Alberta

Alberta has limited smart metering in place. In light of the emergency grid alert
at the start of 2024, experts have called on the government to do more topromote smart metering and to effectively utilise the smart meters to manage
demand.66
Other provinces and Canada

Nova Scotia recently joined British Columbia and Quebec in full smart meterrollouts.67 Canada overall has 13.3 million smart meters based on the mostrecent estimates.68
3.7 Effective mechanisms or frameworks to prevent preferential treatment forfossil fuel-based generation over RES on the market
SCORE: 13/15
Federal

In 2019, the Government of Canada implemented a national minimum price on
CO2 pollution, or carbon price.69 The national carbon price started at $20/tonnein 2019, increasing annually by $10/tonne to $50/tonne in 2022. In 2020, Canada
proposed to increase the price annually by $15/tonne starting in 2023, reachinga maximum of $170/tonne in 2030. Provinces and territories have been given theflexibility to implement their own pricing system to best suit their circumstances– as long as it aligns with the federal government’s minimum stringency
standards. This approach reflects learnings and leadership of provincial-level
carbon policies, including Alberta’s industrial carbon pricing system andQuebec’s carbon levy put in place in 2007, and British Columbia’s economy-wide
carbon tax implemented in 2008. A recent study by the Canadian Climate
Institute found that large-emitter trading systems, such as the federal carbon
64 Ministry of Energy, December 2014, Chapter 3: Smart Metering Initiative, 2014 Annual Report of the

Office of the Auditor General of Ontario
65 IESO, Smart Metering Entity – Unlocking the value of Ontario’s smart meters (webpage, accessed May

2024)
66 Global News, 4 February 2024, Energy experts call for better smart meters to help reduce drain onelectricity grid
67 Natural Resources Canada, April 2022, Smart Grid in Canada 2020–2021
68 Ibid.
69 Government of Canada, The federal carbon pollution pricing benchmark (webpage, accessed May 2024)

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price, have been the most effective policy driver of emissions reductions in
Canada.70 Therefore, as the federal carbon price increases to $170/tonne by2030, the business case for cleaner sources of electricity like wind, solar, andstorage will continue to become stronger.
The Canadian federal government has set a goal of procuring 100% clean
electricity for its buildings by 2025.71 The government has signed several
contracts across the country to procure clean energy.72 These contracts aresupporting local development of new wind projects, while promoting
participation of local Indigenous communities.
Budget 2023 also saw the federal government announcing a 15% clean electricity
investment tax credit for investments in wind, solar, etc.73
More recently, the federal government announced $175 million in support for 12
wind, solar, and smart grid projects in Alberta.74 The funding, announced via the
Smart Renewables and Electrification Pathways Program, will also support
projects led by First Nations owned companies. In early 2023, Canada announced
a $50 million investment in Oneida Energy storage project (250 MW) – an
Indigenous-led project – in Ontario.75
Governments of Canada and Newfoundland and Labrador recently signed a
Memorandum of Understanding (MOU) on offshore wind development.76 The
MOU will allow Newfound and Labrador to administer land tenure and life cycle
regulation for offshore wind projects developed in an identified area. The
agreement will allow Newfoundland and Labrador to control the speed ofdevelopment and send a signal to investors.

70 Canadian Climate Institute, March 2024, Industrial carbon pricing the top driver of emissions reductions,

new analysis shows
71 Government of Canada, 2025 clean power commitment for federal buildings (webpage, accessed May

2024)
72 Government of Canada, Clean electricity initiative (webpage, accessed May 2024)
73 Government of Canada, last modified March 2023, Budget 2023 – A made-in-Canada plan: Strong middle

class, affordable economy, healthy future
74 Government of Canada, September 2023, Federal Government invests in 12 new wind, solar and smart-grid projects with Alberta Indigenous and industry partners
75 Government of Canada, Ontario: Clean electricity snapshot (webpage, accessed May 2024)
76 Government of Canada, December 2023, Governments of Canada and Newfoundland and Labrador sign

Memorandum of Understanding to advance offshore wind power and good jobs

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Provincial

Most provinces have a mixed history of progress procuring RE. However, despitea recent RE moratorium in Alberta, we have seen some momentum in otherprovinces with rounds of RE procurement in the last few years. In 2018, theOntario government cancelled 758 renewable energy contracts.77 However, in
December of 2023, Ontario’s Independent Electricity System Operator
announced an upcoming cycle of long-term procurements targeting
approximately 5000 MW of non-emitting generation meant to meet expectedenergy needs in 2029.78
In Alberta, renewables bid into the energy-only market at $0/MWh and arehence always dispatched when available (see indicator 3.1 on curtailment). The
government of Alberta has set a target of achieving 30% renewable generation
by 203079 and has run multiple rounds of renewable energy procurement80 tocontribute to achieving this target, saving the province $160 million in theprocess.81 Unfortunately, Alberta’s recent 7-month moratorium on RE projectapprovals and unclear new rules for RE development have disrupted its strong RE
investment growth.
In Ontario, electricity from intermittent and self-scheduling renewablegenerators is purchased first because renewables are the least expensive sourceof supply. These generators are considered “price takers”;82 they must accept
the market electricity price without setting a price of their own.
Nova Scotia has also set a target to offer leases for 5 GW of offshore wind energy
by 2030.83
HydroQuebec is planning to add over 10,000 MW of new wind power generation
by 2035.84

77 CBC, 13 July 2018, Ontario government cancels 758 renewable energy contracts, says it will savemillions
78 IESO, December 2023, Evaluating procurement options for supply adequacy
79 Alberta government, updated 1 January 2020, Renewable Electricity Act
80 AESO, REP results (webpage, accessed May 2024)
81 Calgary Herald, 25 October 2022, Alberta made estimated $160m from Renewable Energy Program as

power prices surged: U of C report
82 IESO, February 2014, Introduction to Ontario’s physical markets
83 Government of Nova Scotia, September 2022, Province sets offshore wind target
84 HydroQuebec, n.d., Action Plan 2035 – Towards a decarbonized and prosperous Quebec

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SaskPower recently completed a competitive process of selecting a developer tobuild a 100 MW solar facility.85
3.8 Electrification rate target and roadmap to support delivery
SCORE: 7/15

Canada’s electrification targets vary by sector and region. For vehicles, Canada
has set a 100% zero-emission vehicles target by 2035.86 However, regarding
buildings, Canada does not have an explicit target in place at the federal level,
and most provinces have not set electrification targets for buildings. British
Columbia has set a target to make all new buildings net zero by 2030.87

Benchmark 4: Governance / International leadership
SCORE: 62/80

Thanks in part to the federal and provincial leadership, Canada is on track tophase out coal by 2030. Canada is also a leader and signatory on various
international commitments, such as the Powering Past Coal Alliance. Over 80% of
Canada's electricity is already non-emitting; albeit the proportion of nonemitting electricity varies across the country. Canada is also behind its peer
nations when it comes to the deployment of variable renewable energy andstorage.
To help Canada achieve a net zero grid by 2035, the Canadian federal
government continues to rely on industrial emissions pricing, and has announced
several new policy initiatives, including the upcoming Clean Electricity
Regulations. However, there is a mixed response from the provinces. Some
provinces are exploring pathways to deliver a net zero grid by 2035, and haveplans to add significant amounts of variable renewable capacity (wind and solar).
However, there has also been significant pushback from several provincial
governments on draft Clean Electricity Regulations, and uncertainty about the
future of industrial emissions pricing.

85 SaskPower, January 2024, SaskPower selects proponent for new 100-megawatt solar facility near

Estevan
86 Government of Canada, December 2022, Let it roll: The Government of Canada moves to increase thesupply of electric vehicles for Canadians
87 Ministry of Environment and Climate Change Strategy, October 2021, B.C. launches stronger climate plan

for a better future

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4.1 2035 carbon neutral power system commitment adopted in national
legislation
SCORE: 9/10

Canada has committed to a net zero grid by 2035 and is currently working to
finalise its draft Clean Electricity Regulations and tax incentives,88 which,
together with industrial emissions pricing, will help Canada make progress
toward a net zero grid. However, this commitment and the Clean Electricity
Regulations are under active political challenge from some provinces, especially
Alberta and Saskatchewan. Elements of industrial emissions pricing are also atpolitical risk. Manitoba recently asked the provincial crown corporation to plan
for a net zero grid by 2035.89
4.2 Global leadership on supporting power systems decarbonisation indeveloping countries
SCORE: 10/10

Canada has demonstrated international leadership in supporting energy
transition. Most of the commitments that Canada has signed onto were part ofannouncements at the last three COPs.
Some examples include:> Canada has doubled its climate finance contribution to $5.3 billion for theperiod of 2021 to 2026.90> Canada was directly involved in establishing the Just Energy Transition
Partnerships program (JETPs).91 Most recently, Canada has been developing
JETPs with communities in emerging economies.92> Canada is a member of the Powering Past Coal Alliance. The country is also
providing up to $1 billion under the Climate Investment Funds – Accelerated
Coal Transition.93

88 Government of Canada, August 2023, Canada Gazette, Part I, Volume 157, Number 33: Clean Electricity

Regulations
89 Minister of Finance, 2023, Letter from Adrien Sala, Minister responsible for Manitoba Hydro, to Ben

Graham, Chair, Manitoba Hydro-Electric Board
90 Government of Canada, Canada’s climate finance for developing countries (webpage, accessed May

2024)
91 Government of Canada, COP27 summary of outcomes (webpage, accessed May 2024)
92 Government of Canada, November 2022, Canada supports the global transition to clean and secureenergy with investments to phase-out coal electricity around the world
93 Government of Canada, Powering Past Coal Alliance: phasing out coal (webpage, accessed May 2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: CANADA

> Canada is a signatory to the Paris Declaration on Carbon Pricing in theAmericas,94 which promotes economy wide carbon pricing as an instrument
to take climate action. Canada is continuing to make a push on carbon
pricing, including at COP26.95> Canada is part of a partnership that supports the Least Developed Countries(LDC) 2050 Vision.96 This partnership supports climate adaptation andresilience.
4.3 International commitments on power systems decarbonisation throughalliances or networks such as the PPCA, Glasgow Coal to Clean Power Initiative
etc.
SCORE: 10/10

Canada has made several international commitments through various alliances.
Canada was a founding member and co-chair of the Powering Past Coal Alliance,
through which it is encouraging and supporting the transition from unabatedcoal power generation to clean energy.
Canada’s other international commitments include:> Canada was one of the original signatories under the Global Coal to Clean
Power Transition at COP26.97> Canada continues to support coal limiting initiatives through the Climate
Investment Funds – Accelerating Coal Transition Program (CIP-ACT).98> Canada, along with Australia, European Commission, and the United States,
launched the Clean Energy Ministerial Battery Storage Initiative,99 aimed atadvancing development, deployment, and cost reduction of batteries
through international cooperation and supporting global renewable energy
deployment.
> At COP28, Canada became one of over 130 signatories of the Global
Renewables and Energy Efficiency Pledge, who committed to work together

94 Government of Canada, December 2017, Paris Declaration on Carbon Pricing in the Americas
95 Government of Canada, Canada’s achievements at COP26 (webpage, accessed May 2024)
96 Government of Canada, COP27 summary of outcomes (webpage, accessed May 2024)
97 UN Climate Change Conference UK 2021, November 2021, Global coal to clean power transition

statement
98 Government of Canada, COP27 summary of outcomes (webpage, accessed May 2024)
99 Clean Energy Ministerial, Supercharging battery storage (webpage, accessed May 2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: CANADAto triple the world’s installed renewable energy generation capacity anddouble the annual energy efficiency improvements by 2030.100
4.4 Net zero power system roadmap to drive delivery of 2035 commitment
SCORE: 9/10

The Canadian federal government has developed a suite of measures including
emissions regulations,101 financial incentives102 and collaboration with
provinces103 to advance a net zero grid by 2035.
Several Canadian provinces (British Columbia, Manitoba, Ontario, Quebec,
Newfoundland and Labrador, Prince Edward Island) are already over 90% nonemitting.104 However, among provinces with significant electricity emissions, only
Nova Scotia has made a commitment to achieve 80% total renewable energy by
2030,105 and none have developed roadmaps for a clean grid.
No Canadian province has a roadmap in place for achieving net zero power by2035. However, some are exploring potential pathways to implement a net zero
grid by 2035. NB Power, New Brunswick’s main utility company, conducted astudy identifying 16 different pathways toward achieving a net zero grid by2035.106 New Brunswick government is planning to add 600 MW of small
modular reactor nuclear power, 1400 MW of wind, and 200 MW of utility scalesolar by 2035.107 Along with other action such as energy efficiency and coalphase-out by 2030, New Brunswick’s electricity system is expected to reach nearzero emissions by 2035.108 Manitoba is asking the province’s crown utility, MBHydro, to make plans for a net zero grid by 2035.109

100 COP28 UAE, December 2023, Global Renewables and Energy Efficiency Pledge
101 Government of Canada, August 2023, Canada Gazette, Part I, Volume 157, Number 33: Clean Electricity

Regulations
102 Government of Canada, last modified March 2023, Budget 2023 – A made-in-Canada plan: Strong

middle class, affordable economy, healthy future
103 Government of Canada, December 2023, Governments of Canada and Newfoundland and Labrador sign

Memorandum of Understanding to advance offshore wind power and good jobs
104 Canada Energy Regulator, September 2023, Exploring Canada’s energy future 2023
105 Nova Scotia Power, Clean energy – Powering a green Nova Scotia, together (webpage, accessed May

2024)
106 NB Power, August 2023, NB Power publishes 2023 IRP: Pathways to a net-zero electricity system
107 Government of New Brunswick, December 2023, Powering our economy and the world with clean

energy – Our path forward to 2035
108 Ibid.
109 Minister of Finance, 2023, Letter from Adrien Sala, Minister responsible for Manitoba Hydro, to Ben

Graham, Chair, Manitoba Hydro-Electric Board

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4.5 Critical role of renewables, interconnection, and demand side measuresreflected in country’s energy security framework
SCORE: 8/10

The federal government has taken some action to support renewables,interconnections and demand side management. However, these solutions are
not necessarily framed as energy security management measures. That said, in
2023, Canada and the United States created a joint Energy Transformation Task
Force with the goal of advancing energy security in both countries.110 During its
one-year mandate, this task force aims to secure and strengthen opportunities
and supply chains for renewable energy generation, electric vehicles, criticalminerals, nuclear energy generation, and grid integration and resilience.
As explained under indicator 3.4, several provinces have introduced time-of-use
pricing to support end use flexibility and to deal with demand. However, several
provinces do not offer such a plan.
Provinces play a large role in planning and delivering activities related to griddevelopment. While many recognise the need for greater grid infrastructure,they lack concrete policies to achieve these objectives. See indicator 3.5 for moredetails.
4.6 Unabated coal phase-out date and roadmap to support delivery
SCORE: 10/10

Canada has committed to a phase-out of unabated coal fired electricity by
2030.111 This will support Canada’s 2030 goal of 90% non-emitting electricity andits national climate change commitments.
Canada is on track to phase out unabated coal by 2030. Ontario was the firstprovince to do so in North America in 2014. Alberta will have achieved this goalby the end of 2024. The rest of Canada will phase out unabated coal by 2030.

110 Government of Canada, October 2023, Deputy Prime Minister co-chairs meeting of Canada–U.S. Energy

Transformation Task Force
111 Powering Past Coal Alliance, Canada (webpage, accessed May 2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: CANADA

4.7 Unabated gas phase-out date and roadmap to support delivery
SCORE: 0/10

As the federal carbon price increases to $170/tonne by 2030 (see indicator 3.7),
the business case for unabated emissions from gas fired electricity generation
will worsen. This, in turn, will drive investments in abatement technologies, suchas carbon capture and storage, while incentivising an accelerated transition
toward lower emission sources of electricity.
The proposed Federal Clean Electricity Regulations will add certainty to theprocess of phasing out unabated gas fired electricity when implemented inautumn 2024, while offering provincial systems several flexibility and reliability
measures. Under this regulation, new gas fired assets will need to be abatedstarting in 2035. New gas plants, or those past the end of their economic life, canuse carbon capture and storage, and other technologies to abate emissions andcontinue operating. There is also limited flexibility for gas fired peaking power
plants to continue operating without emissions abatement.
Alberta and Saskatchewan are pushing back against the Clean Electricity
Regulations arguing that gas is essential for their electricity systems. Alberta’s
premier has indicated that Alberta wants to build more base load gas capacity.112
Saskatchewan is also adding new unabated gas fired assets.113
Lastly, Ontario recently procured some additional gas-fired capacity. Ontario’s
Independent Electricity System Operator (IESO) has stated that this new capacity
is needed to maintain system reliability while several nuclear units are offline forplanned refurbishments. Once these refurbishments are complete in 2033 andnew, non-emitting technologies like storage and hydrogen have been tested, gas
will no longer be needed.114 Also, the IESO has conducted a feasibility study forphasing out gas fired electricity. Although the study yielded mixed results,
nationally, it was a leading effort by a system operator to phase out gas.115

112 Global News, 28 November 2023, Feds won’t challenge Alberta’s Sovereignty Act as electricity

providers unpack implications
113 SaskPower, Planning and construction projects (webpage, accessed May 2024)
114 Government of Ontario, 2023, Powering Ontario’s Growth – Ontario’s plan for a clean energy future
115 IESO, December 2022, Pathways to Decarbonization

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4.8 2030 target for share of total RES in electricity generation
SCORE: 6/10

Canada’s electricity is already about 83% emissions free, thanks to hydroelectric,
nuclear, wind, solar, biomass, and tidal power generation.
Canada committed to tripling renewable energy by 2030 at COP28.116 A few
provinces have also set targets for the share of total RES in their electricity
generation by 2030: Nova Scotia has commitment to achieve 80% total
renewable energy by 2030,117 whereas Alberta wants to generate at least 30% of
its electricity from renewable energy sources by the same year.118 At the national
level, there is a non-legislated commitment to 90% non-emitting electricity
generation by 2030.119 Canada is also aiming for a net zero emitting grid by 2035
via the upcoming Clean Electricity Regulations.
Several provinces are planning to procure more RES. Further, it is likely thatsome provinces, such as British Columbia and Quebec, which are already above
90% non-emitting, will continue to support a clean grid in 2030 and beyond. See
indicator 3.7 for more detail.

Benchmark 5: Reducing energy waste
SCORE: 36/80

Canada has a mixed bag of support for reducing energy waste though its grids
are overall efficient with low transmission line losses. The Canadian federal
government has taken significant steps to support retrofit programs andannounced programmatic support. However, there remains a pressing need forfurther action to accelerate the scale and scope of retrofitting initiatives.
Particularly, more support is needed from the provinces, both in the form ofsetting their own targets, providing programmatic supports, and implementing
other enabling policies.

116 Government of Canada, COP28 summary of outcomes (webpage, accessed May 2024)
117 Nova Scotia Power, Clean Energy – Powering a green Nova Scotia, together (webpage, accessed May

2024)
118 Alberta government, updated 1 January 2020, Renewable Electricity Act
119 Environment and Climate Change Canada, 2022, 2030 Emissions Reduction Plan

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5.1 Efficient policies to retrofit / renovate buildings
SCORE: 10/20

Between 2023 and 2027, the federal government is investing $200 million in the
Deep Retrofit Accelerator Initiative (DRAI)120 to support “retrofit accelerators” –organisations that identify, guide, fund, and build capacity for deep retrofit
projects. Starting in 2022–2023, the federal government of Canada ran a Greener
Neighbourhoods Pilot Program,121 piloting the EnergieSprong aggregated deep
retrofit model. Canada is developing a Green Buildings Strategy (GBS), which is
aimed at reducing emissions and increasing resiliency of the built
environment.122 The goal of GBS is to “mobilize national action to transformmarkets and reduce costs to meet this goal.”
5.2 National energy/power savings target
SCORE: 8/10

Canada is signatory to IEA’s commitment to double the annual energy efficiency
improvement rate to over 4%.123
There is no legislated national target for energy savings, energy efficiency or
power savings. Most of Canada’s provinces have adopted their own annual
energy savings targets, mostly in the form of legislated commitments (e.g.,
Manitoba – 1.5% savings p.a. or Prince Edward Islands – 2% savings p.a),according to Efficiency Canada’s database (last reviewed November 2022).124 In
addition, two provinces – Quebec and Manitoba adopted gas saving targets.
Despite active provincial action on this issue, the improvement rates are overall
below what’s needed: Canada remains the G7 country with lowest annual energy
efficiency improvements.125
5.3 Sufficient spending on energy efficiency programmes
SCORE: 7/20

The Canadian federal government has taken some steps toward energy
efficiency, albeit mostly in the form of programmatic announcements. The
120 Government of Canada, Deep Retrofit Accelerator Initiative (webpage, accessed May 2024)
121 Government of Canada, Greener Neighbourhoods Pilot Program (webpage, accessed May 2024)
122 Government of Canada, The Canada Green Buildings Strategy consultation (webpage, accessed May

2024)
123 IEA, June 2023, Energy Efficiency: The decade for action
124 Efficiency Canada, Energy Efficiency Programs (webpage, accessed May 2024)
125 Alliance for an Energy Efficient Economy, March 2023, Strategic plan for advancing energy efficiency

across demand sectors by 2030

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Canada Greener Homes Grant, which recently expired, offered grants for
retrofits.126 Canada Greener Affordable Housing program provides funding toaffordable housing providers for deep energy retrofits for existing multi-unit
residential buildings.127 On the other hand, the Canada Greener Homes Loan
program provides interest-free loans worth up to $40,000 for eligible homeretrofits.128 Lastly, the Oil to Heat Pump Affordability program offers financial
support to eligible home owners for switching from oil heating to heat pumps. 129
5.4 High-quality appliance and equipment standards and labelling
SCORE: 11/20

The federal government sets efficiency standards for certain appliances andequipment. These standards apply to all specified products that are imported or
shipped between provinces. Provinces and territories have the jurisdiction overproducts sold within their borders.
Federal regulations cover 58 products including household appliances, water
heaters, heating and air conditioning equipment, lighting products, electronic
products, commercial refrigeration, and other industrial or commercial
equipment.130 Additionally, five provinces have set their own regulations, which
provide a varying amount of coverage. British Columbia is currently preparing
Highest Efficiency Equipment Standards.131
The federal government also manages a labelling program called EnerGuide,
which is mandatory for commonly residential appliances like washing machines,
dryers, dishwashers, cooktops, ovens, and refrigerators. EnerGuide labels display
the annual energy consumption of the labelled model compared to theconsumption of the most and least efficient models in the same class,empowering consumers to make educated purchasing decisions.132

126 Government of Canada, Canada Greener Homes Grant (webpage, accessed May 2024)
127 Canada Mortgage and Housing Corporation, Canada Greener Affordable Housing (webpage, accessed

May 2024)
128 Government of Canada, Canada Greener Homes Loan (webpage, accessed May 2024)
129 Government of Canada, Oil to Heat Pump Affordability Program (webpage, accessed May 2024)
130 Government of Canada, Energy efficiency regulations by province (webpage, accessed May 2024)
131 Pembina Institute, February 2024, Submission to Highest Efficiency Equipment Standards Consultationin B.C.
132 Government of Canada, The EnerGuide label (webpage, accessed May 2024)

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About E3G
E3G is an independent climate change think tank with a global outlook. We workon the frontier of the climate landscape, tackling the barriers and advancing thesolutions to a safe climate. Our goal is to translate climate politics, economics
and policies into action.
E3G builds broad-based coalitions to deliver a safe climate, working closely withlike-minded partners in government, politics, civil society, science, the media,
public interest foundations and elsewhere to leverage change.
More information is available at www.e3g.org
Copyright
This work is licensed under the Creative Commons Attribution-NonCommercialShareAlike 4.0 License. © E3G 2024

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