Clean electricity, Affordable energy
New analysis from the Institute shows that a big switch from fossil fuels to clean electricity will save Canadians money. Clean electricity will power Canada’s future prosperity, and underpin Canada’s climate progress. The push for it is global—the rest of the G7 countries have also committed to a clean electricity grid by 2035. And federal funding, announced in March 2023, dedicated tens of billions of dollars for provinces and territories to upgrade and expand their electricity grids with clean electricity.
Our analysis finds that Canadians will spend 12 per cent less on energy by 2050 than they do today when they switch off fossil fuels to power their homes, vehicles and businesses with clean electricity.
Switching away from fossil fuels will save canadians money
Our research shows that a big switch will have Canadians spending less on energy because electric technologies are so much more energy efficient than fossil-based ones. The cost of renewable power has also fallen dramatically over the last decade, making it the cheapest source of new power. Wind and solar can be integrated into larger electricity systems in ways that maintain grid stability and reliability for customers. And clean electricity does not come with the price volatility of fossil fuels.
We find that households will save on energy costs overall despite projected gradual increases in the cost of electricity over time. But to ensure that all households get to benefit, provinces can use their policy tools to help ensure the transition remains fair and affordable for low- and middle-income households.
Clean energy is becoming an imperative for businesses
Abundant, clean, and affordable electricity is increasingly a must-have for economic development in Canada and around the world. And our research shows that the clean electricity sector will be a significant employer— tripling its current labour force by 2050 to provide over a quarter million jobs.
Federal support can help unlock these benefits for businesses and households. We recommend that provinces sign on to the high-level conditions attached to federal support, and embrace the benefits of a big switch.
Learn more about switching to clean energy
Download the Institute’s fact sheet, Clean Electricity in Canada.
Open letter calling for accelerated action towards non-climate-polluting electricity nationwide by 2035: Clean electricity is the heart of Canada’s economic growth.