Provinces Wary of Feds Net-Zero Electricity by 2035

The federal government has announced its intention to introduce regulations requiring provinces to phase out the use of fossil fuels for electricity generation by 2035. The details of the regulations are expected to be released in the summer of 2023. This is part of the government's plan to achieve net-zero emissions by 2050 and net-zero electricity by 2035.

Prairie Provinces Concerned

The regulations will significantly impact Alberta and Saskatchewan, which rely heavily on natural gas for power generation. These provinces have limited hydroelectric capacity, and all provinces will face challenges in deploying small modular reactors (SMRs) in time to meet the 2035 deadline. They also have political opposition to the federal plan, as their conservative governments have accused Ottawa of imposing a one-size-fits-all approach that ignores regional differences and realities.

Reduced Options as Electrification Increases Power Demand

The electricity demand is expected to increase in the coming years as more electric vehicles hit the road and more buildings switch from natural gas heating to electric heat pumps or other technologies. The federal government argues that the regulations will incentivize innovation and investment in low-emitting generation sources, such as renewables, hydrogen, and carbon capture and storage (CCS). However, some critics warn that the regulations will increase costs for consumers and businesses, disrupt the electricity market, and jeopardize the viability of some natural gas plants, including those with Indigenous partnerships.

The federal government has stated that it will work with provinces, territories, Indigenous peoples, and stakeholders to achieve net-zero electricity by 2035. It has also committed to providing additional federal actions and complementary policies to support the transition, such as carbon pricing, infrastructure funding, and clean fuel standards. However, some provinces have expressed skepticism about the federal government's willingness to accommodate regional differences and respect provincial jurisdiction over electricity generation.

The proposed regulations are a bold and ambitious step towards decarbonizing Canada's electricity sector. They will also pose significant challenges and opportunities for provinces, especially those that rely on fossil fuels for power generation. The details of the regulations will be crucial in determining how the transition will unfold and what impacts it will have on the economy, the environment, and society.