Canadians will save money switching to clean electricity, research finds

Provinces can leverage billions of dollars in federal support to build bigger, cleaner electricity grids and keep energy affordable.

22.06.23

22 June 2023, OTTAWA—Amid rising concerns over the cost of living, new research by the Canadian Climate Institute finds that the average Canadian household will spend 12 per cent less on energy in 2050 than they do today, as they switch from fossil fuels to power their homes, vehicles and businesses with clean electricity.

The new report—Clean Electricity, Affordable Energy: How federal and provincial governments can save Canadians money on the path to net zero—finds these cost savings are expected despite gradual increases over time in electricity rates across provinces and territories. To ensure all households benefit, the report shows how provinces can use policy tools, like means-tested fixed charges on electricity bills, to help ensure the transition remains affordable for low- and middle-income households.

The report also estimates how much each province and territory stands to benefit from the tens of billions of dollars in federal support for clean electricity identified in the 2023 budget. These funds are intended to help provinces and territories upgrade and expand their grids with clean electricity. The funds can help accelerate the build out of clean, reliable electricity and ensure grids are ready to meet growing demand as Canada electrifies its economy and moves towards net zero emissions by mid-century.

By signing on to high-level conditions for accessing federal support, provinces and territories can unlock significant benefits for their ratepayers and deliver the bigger, cleaner, smarter electricity systems that businesses are increasingly demanding as a requirement for their investment.

Quotes

“Switching to clean, abundant, reliable electricity will save Canadians money on energy as the country moves towards a low-carbon future. Technologies like electric vehicles and heat pumps use much less energy and are typically cheaper to operate than fossil-fuelled alternatives, which cut energy costs and helps keep life affordable.”

—Jason Dion, Senior Director of Research, Canadian Climate Institute

“Bigger, cleaner electricity systems are now a must-have for businesses looking to make major investments. Producing 100 per cent clean electricity is now table stakes for provinces and territories wanting to ensure their future prosperity through the global energy transition.”

—Rick Smith, President, Canadian Climate Institute

“Canada needs to make massive investments in our electricity system to meet the needs of the energy transition. The scale is too much for ratepayers to cover alone. The 2023 federal budget made transformative investments in Canada’s electricity sector that will help electricity companies build the system we need at a price Canadians can afford.”
—Francis Bradley, President and Chief Executive Officer, Electricity Canada