Back in May, the Carney government announced a strategy entitled “Powering Canada Strong: A National Strategy for an Electrified Canadian Economy.” The plan is to double the capacity of Canada’s electrical grid by 2050. This announcement did not get anywhere near the attention it deserved, especially considering that the cost is estimated at a gigantic $1 trillion. Sadly, our subsidized legacy media does virtually no scrutiny of pretty much any announcement the Liberal government makes, in fear of losing their multi-billion-dollar welfare payments with our scarce tax dollars. This project in particular deserves much better coverage because of its complexity, cost and impact on every Canadian and every business.
For starters, there is no doubt that Canada, as well as other countries, needs to expand its capacity to produce electricity. Our current economy demands more power, and the industries of the future such as AI and the massive data centres needed will require even more electricity. Some of the proposals in the announced policy are positive, such as promoting more interconnection among the currently fragmented provincial electrical grids and establishing better domestic supply chains so that components of the expanded grid can be manufactured in Canada. This massive project will also create good jobs and expand the skill sets of Canadian workers.
The fact that nuclear energy and natural gas, as well as wind and solar, are included as parts of the strategy could also be seen as positive. Most environmental groups hate nuclear power and want to see natural gas eliminated completely as an energy generator, which is impractical and risks Canadians freezing in the dark when the wind isn’t blowing and the sun isn’t shining. However, apparently the natural gas involved in the grid expansion is supposed to be subject to the immensely expensive carbon capture and storage process to reduce emissions.
At the same time, Carney has said another goal of this project is to lower electricity costs for consumers and businesses. Yet “green” energy projects in Canada to date have done nothing other than increase costs to users. For instance, the Ontario former Liberal government’s green energy initiatives doubled the cost of electricity in the province and eliminated the competitive advantage Ontario companies previously enjoyed because of manageable electricity prices. Requiring the natural gas used in the grid expansion to be subject to carbon capture will make the goal of reducing costs to consumers very unlikely.
The Powering Canada strategy also intends to spread electrification economy-wide and eliminate fossil-fuel generated power that is not “decarbonized.” Given the unreliability of wind and solar as well as their relatively high cost, overdependence on these energy sources is likely to lead to brownouts and blackouts. Unreliability coupled with higher costs will be a disaster for businesses attempting to compete in the future economy.
As usual with most Carney government announcements, there is little detail as to how this very large project is actually to take place. So far, this Liberal government has been very good at making grandiose announcements, yet abysmal at actually implementing them. With a plan as immense as doubling the electrical grid capacity in Canada, one would think at least a few details would be necessary as to how this very complex project was to be accomplished. As Canada has developed a very well-deserved reputation over the last decade as the country where nothing can get built, it’s likely observers will view the Powering Canada plan as a pleasant fiction.
Canada’s electricity system is already about 85 per cent emissions-free because of our use of nuclear power plants and our geographical good fortune in having abundant hydro-electric generation capabilities in most, but not all, regions of Canada. We have one of the world’s “greenest” electricity grids as a result. There is currently intense competition among countries world-wide to attract the data centres that are necessary for AI development. Other countries are not insisting their carbon-based energy generation sources are “decarbonized,” so will be able to offer lower costs and more reliability.
Once again, the Carney government pretends to be paying attention to the issues important to enhance Canada’s economic prospects yet puts deal-breaking caveats on the policies needed to achieve success. Trying to have things both ways, by attempting to satisfy the environmental zealots as well as those who want to see Canada build and succeed, will achieve neither goal. These pretences may be viewed positively by some Canadian voters, but they will be easily seen through by the investors we desperately need to rescue Canada from its current downward spiral.
She has published numerous articles in journals, magazines & other media on issues such as free trade, finance, entrepreneurship & women business owners. Ms. Swift is a past President of the Empire Club of Canada, a former Director of the CD Howe Institute, the Canadian Youth Business Foundation, SOS Children’s Villages, past President of the International Small Business Congress and current Director of the Fraser Institute. She was cited in 2003 & 2012 as one of the most powerful women in Canada by the Women’s Executive Network & is a recipient of the Queen’s Silver & Gold Jubilee medals.
