Will Canada's Clean-Tech Revolution Thrive Without More Clean Power?

Navigating the Power Surge: Canada's Clean-Tech Odyssey

Editorial Team (ET)May 8, 2025

The rapid growth of Canada's clean-tech sector has been nothing short of impressive, with Industry Minister François-Philippe Champagne playing a pivotal role in catalyzing this transformation. In recent years, Canada has witnessed the establishment of massive electric-vehicle battery plants and a surge in green industrial initiatives. However, as the clean-tech revolution gains momentum, Champagne raises a critical concern: the availability of clean power.

The Green Industrial Policy Takes Shape

Champagne, in a candid interview with The Canadian Press in December, emphasized the significance of energy generation as a potential limiting factor in Canada's clean-tech journey. He designated 2023 as the year when "our green industrial policy is taking shape." This assertion underscores the pivotal role that energy production will play in sustaining and propelling Canada's green economy.

Mega Projects and Renewable Energy

Throughout the year, Canada unveiled a slew of major projects, including the Volkswagen EV battery plant in St. Thomas, Ont., and a significant Dow Chemical plastics factory in Alberta. Swedish battery manufacturer Northvolt is also gearing up to establish its first North American battery factory near Montreal. Not to be outdone, Stellantis and LG Energy Solution are jointly constructing a substantial battery plant in Windsor, Ont., with generous government support akin to the Volkswagen deal.

Champagne's vision for 2024 is clear: intensifying support for small- and medium-sized enterprises that will contribute to these mammoth projects. Equally vital is the infrastructure necessary to power these industrial giants, which brings us to a crucial question - how can we ensure a steady supply of energy to these burgeoning ventures?

The Power Predicament

The minister underscores the immediate need for Canada to focus on developing small nuclear reactors and expanding its renewable energy sources. The availability of power is now a key determinant in project approvals, highlighting the urgency of addressing this issue. Some regions in the country are already grappling with energy generation capacity constraints, a concern shared by Quebec's Energy Minister Pierre Fitzgibbon.

Quebec's Energy Conundrum

Quebec, a major player in Canada's electricity supply, is racing against the clock to meet surging power demands. Fitzgibbon's warning last year that the province would exhaust its electricity surpluses by the end of 2026 highlights the gravity of the situation. With rapidly escalating demand, Quebec may have to make tough choices regarding allocating power to industrial users seeking expansion opportunities.

Canada's Clean Energy Commitment

Canada boasts a commendable record in generating electricity from non-emitting sources, with over 80% of its electricity deriving from hydro dams, wind farms, solar panels, tidal power, and biomass. However, the nation's climate transition ambitions necessitate a substantial increase in renewable energy production. By 2035, Canada aims to make all electricity production non-emitting, utilizing renewable fuels or fossil-fuel facilities with carbon capture and storage systems.

A Shift Towards Electric Transportation

In sync with its climate goals, the federal government is mandating the cessation of gas-powered car sales after 2035. Additionally, it aims to electrify most medium- and heavy-duty vehicles by 2040. Simultaneously, Ottawa is advocating for electric heat pumps as a cleaner alternative to traditional gas or oil furnaces and pushing industries to reduce fossil fuel usage. All these endeavors demand a substantial upswing in power supply.

Future Power Demand

The Canada Energy Regulator's predictions are telling; it anticipates a nearly 50% growth in electricity demand over the next three decades. This surge is primarily driven by the burgeoning electric vehicle market and the increased need for hydrogen production. The clean-tech sector is entering uncharted territory, facing the challenge of expanding power generation dramatically within a compressed timeframe.

Coordinated Efforts for Sustainable Growth

Evan Pivnick, program manager at Clean Energy Canada at Simon Fraser University, emphasizes that Canada's electrical supply has traditionally grown in response to demand. However, the impending clean energy revolution requires proactive measures to ensure a reliable power supply. Collaboration among governments, utilities, and industries is imperative to meet the growing energy needs of investors seeking opportunities in Canada.

Clean Power as a Competitive Advantage

Companies like Volkswagen have selected Canada for their first North American EV battery plants, partly due to access to renewable power. Champagne's message is unequivocal: clean power is a major selling point in conversations with potential investors.

In conclusion, Canada's clean-tech revolution is undeniably impressive, but its sustainability hinges on addressing the imminent energy generation challenge. As the nation strives to achieve ambitious climate goals and foster green industrial growth, investing in clean power infrastructure becomes paramount. The synergy between a robust clean energy sector and attracting global investments will undoubtedly define Canada's position in the evolving clean-tech landscape.

KanadaEnergie

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