Canada is betting big on hydro and wind, with federal and provincial leaders announcing what they call “the largest clean energy investment in North American history.”
Canadian officials say $70 billion has been set aside to expand wind and hydropower in eastern Canada under an agreement between Prime Minister Mark Carney’s government and the provinces of Quebec and Newfoundland and Labrador.
If it goes ahead, Carney said the project would generate 14,000 megawatts of power, “enough to light, heat [and] cool the homes in Toronto, Montreal and Vancouver combined”. He said it would also support 23,000 jobs and contribute $31 billion, or €19.3 billion, to Canada’s GDP through the early 2040s.
The plans remain tentative, but they mark a major effort to lift electricity production in Canada.
The agreement includes upgrades to the Churchill Falls generating station and a new hydro project on Gull Island. Both are in Labrador, on Canada’s Atlantic coast.
Some of the new electricity would also be sent to Quebec. Utility Hydro-Quebec would then sell a significant amount into the northeastern United States.
The article says importing more Canadian hydroelectricity is seen by some as a key part of cutting emissions from the US power grid, while also improving reliability and costs for American consumers.
Canada already gets around 80 percent of its electricity from non-emitting sources, mainly hydro, as well as nuclear, wind and solar. The article says that helps give the country the lowest residential electricity costs in the G7.
Through “a combination of clean economy tax credits, efficient project approvals, cooperation agreements with provinces and territories, and attractive financing”, Carney said: “We are making Canada the best place in the world to build and invest in clean energy.”
The project could still run into political trouble within months. At the signing ceremony on Monday 17 August in Newfoundland, Quebec Premier Christine Frechette said her opponents in the separatist Parti Quebecois could scrap the deal if they win provincial elections in October, which the article says current polls suggest is likely.
Since taking office last year, Carney has faced criticism from environmentally conscious groups that accuse him of walking back climate pledges supported by his predecessor Justin Trudeau. The article says a member of Carney’s cabinet resigned last year over plans for a new oil pipeline from Alberta to the Pacific coast.
Monday’s announcement was welcomed by the Canadian Climate Institute, which said it showed “the level of ambition needed to reach Canada’s goal of doubling the electricity grid with clean energy”.
Its president, Rick Smith, said stronger domestic clean energy supply would also “improve energy security and affordability in a time of volatile energy price swings”.
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