Brattle Economists Analyze the Impact of Canada’s Energy Transition on Reliability in a New Report for Electricity Canada

Canada has been making great strides towards sustainability in the country’s electricity systems and meeting ambitious net zero policies. However, Canada is falling behind in developing coordinated implementation plans that prioritize reliability, and the reliability impacts on delivery infrastructure are not keeping pace with the rapidly evolving landscape.

Principals Tom Chapman and Dr. Kathleen Spees recently authored a report for Electricity Canada analyzing how the energy transition in Canada is impacting reliability. The authors share key findings based on discussions with Canadian utilities and industry professionals and develop recommendations on how to best address reliability concerns as the nation’s electricity system supports the transition to a clean energy economy.

Key findings include:

• Prioritizing reliability is essential to achieving an orderly transition to a clean energy economy.
• Investments in clean energy are only half the story: reliability requires enabling investments in network infrastructure, grid modernization, and grid hardening.
• A long-term goal of net zero requires a long-term vision from utility regulators that explicitly includes electrification and decarbonization.
• The utility business model is central to achieving a successful energy transition, but many risks to future reliability lie outside the direct control of utilities.
• Effective policies to address affordability and local economy impacts are required.
• First Nation, Indigenous, and utility partnerships are an emerging success story, but additional partnerships are at risk if utility reliability concerns are not addressed.
• Enhanced engagement is required to strengthen relationships among utilities stakeholders, policymakers, and regulators to ensure reliability concerns are addressed early in the policy development process.
• A cohesive, integrated planning strategy is required to facilitate strategic investments in enabling infrastructure.

The full report, “Electricity in Canada: Always On,” can be found below.