Federal government releases new draft regulations on clean electricity

OTTAWA -

Electricity infrastructure expenses are expected increase significantly over the next several decades as maintenance and increased demand is estimated to cost $400 billion by 2050.

The country's grid is already nearly 85 per cent clean, but demand is expected to double by 2050 as things like cars, buses and trains become electric.

"Why not make sure that this build-out is clean and affordable?" the minister posited.

The government expects the draft regulations would decrease greenhouse gas emissions by 342 million tonnes between 2024 and 2050.

The ministry has been seeking feedback on the regulatory framework for nearly a year and will consult on the draft regulations for 75 days, with a final version expected to be published in January 2025.

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They won't come into effect until 2035, but given the long lead time needed to build new electricity infrastructure Guilbeault said the government wants to give the industry plenty of notice.

"One thing we've heard from investors, from energy companies, is: 'Tell us what the rules are, and we will comply with them,"' the minister said of the consultations so far.

"They want to know what the rules of the game will be, and that's exactly what we're doing. We're giving them a lot of time to prepare."

Guilbeault said the draft regulations are designed to be affordable and achievable with existing technology that is already being used across the country.

They are also intended to show some flexibility, he said, particularly for remote communities that aren't part of the power grid and will be exempt from the new rules.

Federal and provincial governments are working together on plans and projects to reduce and eliminate the dependence on fossil fuels in remote communities, he said.

"We understand we're not there yet, which is why we've decided to ensure that the regulations wouldn't apply to them," the minister said.

He would not say if they have a timeline in mind to make clean electricity more accessible to all those communities that will be exempt.

This report by The Canadian Press was first published Aug. 10, 2023.