04-07-2025
- Business
- National Observer
National power grid needed to fend off Trump and build clean economy: advocates
Days after Mark Carney's Liberal government passed its controversial major projects legislation that allows it to bypass environmental laws and Indigenous consultation, more than 100 organizations across Canada are calling for a nation-building project that might begin to rebuild goodwill with those offended by Bill C-5.
In an open letter published Thursday, the 105 environmental, labour, Indigenous and community groups urge federal officials to fund an east-west power grid that prioritizes renewable energy, Indigenous and community ownership and energy efficiency as 'key projects in the national interest.'
'Better integrating Canada's electricity system is crucially important for energy security and economic competitiveness in the near term, but it is also a no-regret investment for the long-term prosperity of everyone living in Canada,' the letter reads. Upgrading power grids could create more than 300,000 jobs over the next 25 years, it adds.
A national power grid mega-project could also drive clean economic growth, and if materials like aluminum and steel are procured in Canada, it could also support those sectors under pressure from US tariffs, advocates say.
The groups argue that federal leadership is required to pull off a project of this scale due to challenges related to permitting, funding and interprovincial trade barriers. A study published in the Osgoode Hall Law Journal in 2022, found that more interprovincial transmission lines could boost interprovincial trade of renewable power by connecting privately owned wind, solar and other power sources to more customers.
The Liberals' 2025 platform included a commitment to build out an east-west electricity grid. The platform explicitly says the project will be developed with provinces, territories, Indigenous partners and stakeholders and 'will unleash clean growth across the country.'
The Prime Minister's Office did not return a request for comment.
A national power grid mega-project could also drive clean economic growth, and if materials like aluminum and steel are procured in Canada, it could also support those sectors under pressure from US tariffs, advocates say.
A coast-to-coast high voltage direct current (HVDC) line could be built in under five years, at a cost of roughly $24 billion, according to a study from the David Suzuki Foundation — $10 billion less than the recently completed Trans Mountain expansion project.
'Building an east-west electricity grid across Canada is a huge opportunity that will improve our energy security and create thousands of jobs,' said Stephen Thomas, clean energy manager with the David Suzuki Foundation, in a statement. 'With demand for power going up, our electricity system needs to be powered by renewable energy, not fossil fuels.
'A renewable-backed electricity grid will lower people's energy bills while limiting environmental harm and pollution.'
A briefing note prepared for a meeting between federal and Ontario officials in December that Canada's National Observer received through a federal access to information request describes the process leading up to the federal clean electricity regulations. The document notes that Environment and Climate Change Canada 'made significant changes to relax the regulations in the final design,' following 'substantial stakeholder feedback.'
Those relaxed regulations, published in December, allow fossil fuels to be used to generate electricity as far into the future as 2050, despite originally intending to be net-zero by 2035. The rules will still push provinces and utilities to transition to clean electricity — a widely recognized prerequisite to decarbonize other sectors like transportation, buildings and heavy industry — but 'flexibilities' to allow gas-fired power plants to operate well past 2035 are now baked into the country's decarbonization efforts.
The 105 groups behind Thursday's letter want the federal government to achieve a net-zero power grid by updating Canada's electricity strategy. They also call for upholding legal rights for Indigenous communities, including the right to free, prior and informed consent; labour supports like prevailing wage requirements and training capacity; and upgrades to both transmission and generation in line with affordable, reliable, clean electricity.
Last year, then-energy and natural resources minister Jonathan Wilkinson told Canada's National Observer that some provinces were eager to collaborate on expanding the power grid — with the notable exceptions of Alberta and Saskatchewan.
Even though a nationwide grid has long been discussed, a likely starting point is strengthening regional tie-ins between provinces with significant hydro resources and those still reliant on fossil fuels to better manage supply and demand.
A bit of geographic luck has already positioned Canada relatively well for this approach. Each province that still depends on burning coal, oil or gas to generate electricity has a neighbour with hydropower that can lend a hand. Some like British Columbia, Manitoba, Quebec and Newfoundland and Labrador have massive hydro resources, while others like Alberta, Saskatchewan, New Brunswick and Nova Scotia still rely on fossil fuels.
