Proposed Frame for the Clean Electricity Regulations
Source: | · GOVERNMENT OF CANADA · | July 26, 2022
Source: Electric Autonomy Canada
Canada is committed to achieving a net-zero electricity system as a key part of its plan to achieve net zero emissions by 2050 to help combat climate change. The plan also includes facilitating coordination between key parties through the Pan-Canadian Grid Council and Regional Energy Tables, and incentives for investments in clean technologies by utilities, businesses and households.
The Clean Electricity Regulations (CER) would be part of a suite of federal measures to move Canada’s electricity sector to net zero as an enabler for broader decarbonization of the economy. Electricity systems in many parts of Canada rely on natural gas for electricity generation. The adoption of abatement technologies and non-emitting fuels can allow utilities and others to make significant progress towards net zero emissions. However, with the current suite of technologies, continued use of natural gas may be required especially for emergencies and in some circumstances to complement variable wind and solar, but this use should decline over time as technologies evolve. Requiring financial compliance that could take the form of offsets or payments corresponding to the federal carbon priceFootnotei will help ensure that this is the case.
The CER and complementary measures would encourage energy efficiency; demand side management, dynamic pricing; and a range of efficiency, abatement and non-emitting generating technologies such as carbon capture and storage (CCS), solar, wind, geothermal, small modular nuclear reactors (SMRs), hydro, distributed energy systems, interties and energy storage. It could also support bringing more clean power from Indigenous power producers to Canada’s electricity systems.
Achieving a net-zero electricity supply is key to reaching Canada’s climate targets in two ways. First, it will reduce GHG emissions from production of electricity. Second, using clean electricity instead of fossil fuels in vehicles, heating and industry will reduce emissions from those sectors too.