Part 2. The Great Canadian Grid Overhaul: Forging an East-West Energy Artery

By Denis Koshelev

For quite some time, it has been described as Canada’s “elusive national dream” for electrical infrastructure: a truly national grid, seamlessly connecting provinces from east to west. This vision is now moving from a dream to a necessity, representing the most promising solution to securing Canada’s energy future.

Inter-Provincial Integration Plans and Benefits

The concept of an east-west electrical grid has emerged as a recurring theme in Canadian energy policy discussions. British Columbia Premier Christy Clark has been particularly vocal in advocating for federal support to build new electrical infrastructure that would allow B.C. to sell hydroelectricity to Alberta, potentially accelerating Alberta’s transition away from coal-fired power generation. This vision of inter-provincial electricity sharing would leverage British Columbia’s 93 percent clean energy profile to support Alberta’s massive shift away from coal, creating what Clark describes as an “east to west partnership” that is “all Canadian, all clean”.

“If we had a hydro intertie (transmission lines that connect the electricity grids) between British Columbia and Alberta that could carry a heavy load, we’re 93 per cent clean energy in B.C., we can easily help Alberta get off coal and do that in a way that creates an east-to-west partnership. It’s all Canadian, it’s all clean,” said Clark in 2016 on CBC’s The House. [5]

Greater inter-provincial grid connectivity offers profound technical and economic advantages, extending well beyond mere electricity transactions. It strengthens grid reliability, optimizes resource allocation, and significantly advances climate change mitigation efforts. Establishing an integrated east-west grid would diminish Canada’s reliance on cross-border energy exchanges, while enabling provinces rich in clean energy to bolster regions still reliant on fossil fuels. This strategic integration would dramatically accelerate Canada’s journey toward its climate objectives, as hydroelectric power from energy-abundant provinces could readily displace coal-fired generation in areas where renewable resources are less developed.

Recent concrete progress toward inter-provincial integration is evident in the Canada Infrastructure Bank’s $217 million equity financing commitment for a new transmission line linking Nova Scotia and New Brunswick. This 160-kilometre, 345-kilovolt transmission line will run parallel to the existing connection from Onslow, Nova Scotia, to Salisbury, New Brunswick, while generating $105 million in GDP. The project represents a practical step toward enhanced grid connectivity while minimizing costs for ratepayers and includes provisions for Mi’kmaw First Nations ownership participation through the Indigenous Equity Initiative. [6]

Building a 21st-Century Smart Grid

The Investment Challenge: Meeting the projected electricity demand growth and achieving net-zero targets by 2050 requires a “nation-building project of unprecedented scale and importance” for Canada’s electricity grids. [9] The Public Policy Forum has called for accelerating over 500 energy, critical minerals, and infrastructure projects, aiming to mobilize $1.1 trillion by 2035. [10] The Canadian infrastructure investment climate shows encouraging signs, with a projected total investment value exceeding $300 billion in Canada’s 100 largest public infrastructure projects, an increase of $8 billion from 2024. [11]

The Policy and Regulatory Maze: However, the scale of the required build-out is immense, and there are indications that the pace of expansion may be constrained by existing processes. Efforts to streamline regulatory procedures and the Canada Electricity Advisory Council’s recommendation for “A Champion to Reform Clean Electricity Approvals” suggest that current approval processes may be hindering rapid deployment. [7] The Canadian Climate Institute emphasizes that early and smart policy action can significantly reduce overall costs and prevent higher consumer prices that would result from underbuilt systems struggling to meet growing demand. [4]

Despite ambitious targets and significant investment projections, the pace of infrastructure expansion is likely constrained by existing regulatory and permitting bottlenecks. Without fundamental reforms to accelerate project approvals and eliminate duplication, Canada risks falling behind its demand projections and net-zero targets, leading to higher costs and potential reliability issues in the future. This highlights a critical need for policy and regulatory innovation to match the scale of the physical build-out.

Given Canada’s diverse landscape, successful implementation hinges on a collaborative, stakeholder-driven strategy. This demands integrated planning that actively involves all levels of government, key industry leaders, and Indigenous communities. Establishing clear, incremental, yet ambitious interim targets will ensure measurable and attainable progress, sustaining the momentum crucial for achieving full decarbonization by mid-century.

While Canada’s decentralized energy landscape allows provinces to tailor solutions, it inherently complicates the development and implementation of a unified national energy strategy. The Canada Electricity Advisory Council (CEAC) acknowledged this jurisdictional autonomy. Its report, released in 2024, identifies four cornerstones for a successful electricity transition: speed, reliability, affordability, and Indigenous participation. The goal, as articulated for a new Grid Council, is to “promote the lowest cost approaches... while advancing competitiveness to sell more Clean Canadian Power to the United States…” [25]

The Council recommends policy clarity, consistency, and alignment to enable the electricity sector to play its pivotal role in Canada’s transition to net-zero. The report also suggests a focus on inter-regional grid infrastructure and targeted support for Indigenous, northern, and remote communities, as well as low-income Canadians.

The Council’s analysis projects that by 2050, most Canadians will experience net savings in their energy outlays, even with a projected doubling of investment in the electricity sector. However, some households, particularly those with lower incomes and in specific regions, might face elevated average costs. [7]

The Technical Challenges: The integration of intermittent renewable energy sources presents significant technical and operational challenges for grid stability and reliability. Alberta’s experience illustrates these challenges, where the phaseout of dispatchable coal-fired power plants has coincided with a dramatic increase in intermittent wind and solar generation. This transition has contributed to increased grid instability during extreme weather events, as intermittent sources cannot provide the same level of predictable, controllable power output as traditional thermal plants. [12]

The unpredictable nature, seasonal variations, and fluctuations associated with solar and wind energy generation present significant difficulties in smoothly integrating them into traditional electrical power networks. The traditional, centralized grid design is insufficient to handle the inherent variability of variable renewable energy (VRE), especially as penetration rates exceed critical thresholds. This demands a fundamental shift towards a “smarter” and more adaptable grid architecture that can dynamically manage supply and demand fluctuations, rather than just increasing generation capacity. [13]

Canada’s energy system remains heavily reliant on fossil fuels, both for domestic use and as a major export to U.S. and global markets. This dual role reinforces fossil fuel infrastructure and policy, making a transition to electrification more complex. However, this dependence carries vulnerabilities tied to global market fluctuations and geopolitical uncertainty. Imagining a fully electrified Canadian economy presents a compelling vision, with nearly all energy needs met through renewable electricity generation from wind, solar, and existing hydroelectric and nuclear facilities. Electrification significantly reduces overall energy input requirements due to enhanced efficiency, with electric vehicles, heat pumps, and industrial processes replacing traditional fossil fuel systems.

The Path to Modernization: Achieving this ambitious vision requires substantial enhancements to Canada’s electrical grid. This includes modernizing transmission networks, investing in intelligent grid technologies, and deploying effective demand-response mechanisms. The shift to a fully electrified system powered by renewables offers numerous advantages, such as stimulating job growth, ensuring energy price stability, and significantly bolstering the resilience and adaptability of the national grid.

Climate Positive Energy at the University of Toronto has been actively involved in grid modernization initiatives. They have partnered with organizations such as Toronto Hydro, Alectra Utilities, and Siemens Canada to explore collaboration opportunities and accelerate the adoption of green energy technologies. [24]

Many essential flexibility technologies for Canada’s electricity grid transformation are already commercially available and becoming increasingly affordable. Vehicle-to-Grid (V2G) technology, in particular, offers a groundbreaking, cost-effective solution for seamlessly integrating intermittent renewable energy sources into the national grid. By harnessing the substantial, often unused battery capacity of electric vehicles, V2G can deliver distributed energy storage at a fraction of the expense of dedicated grid-scale systems. This significantly enhances grid flexibility, bolsters stability, improves affordability, and accelerates the path to decarbonization. Despite these compelling advantages, Canada’s adoption remains in its nascent stages, hampered by factors such as the absence of established standards, limited availability of bidirectional charging infrastructure, and ongoing concerns about battery degradation. [14] Studies indicate that widespread adoption of V2G could reduce peak electricity demand by up to 20%, directly alleviating pressure on the grid and supporting the integration of renewable energy sources. [15] In regions prone to blackouts or unreliable power conditions expected to worsen with more severe weather, V2H systems allow households to use their EVs as backup power sources. This can keep essential appliances running during outages and provide a measure of energy independence. [16]

Energy storage solutions, including batteries, are also critical for smoothing out the intermittency of renewables and ensuring a stable supply.

Verdict

Canada’s electricity grid faces escalating risks from climate change-driven extreme weather. Recent near-blackouts, like Alberta’s -40°C scare, reveal the grid’s reliance on public demand reduction, not inherent resilience. Most Ontario utilities lack comprehensive climate risk assessments; only half analyze past weather, and less than a quarter combine it with climate projections [19]. While new 2026 regulations will mandate vulnerability assessments, current preparedness is uneven, especially for smaller utilities [19]. Experts agree that proactive grid hardening — upgrading infrastructure, boosting flexibility, and integrating climate projections — can cut future damage costs by up to 80% and is crucial for integrating renewables [22]. Despite “big investments,” Canada’s grid upgrades aren’t keeping pace with rising demand, electrification, and growing weather threats [23].

The vision of an integrated east-west grid is the clear and logical path to ensuring a reliable, affordable, and clean energy future for Canada. This strategic shift would not only bolster national energy security but would also enhance Canada’s position as an energy exporter by creating a more robust and flexible system from which to trade. However, its success is not guaranteed. It hinges on the political will to overcome decades of jurisdictional inertia, streamline project approvals, and commit to a level of investment not seen in generations.

Part 2. The Great Canadian Grid Overhaul: Forging an East-West Energy Artery

By Denis Koshelev

Inter-Provincial Integration Plans and Benefits

Building a 21st-Century Smart Grid

Verdict

References