Canada’s Clean Energy Push Still Has a Natural Gas Problem

Canada’s electricity future is now more complicated.

On one hand, the country invests heavily in renewable energy, energy storage, and grid modernization. On the other hand, billions are still directed toward natural gas generation.

That tension is at the core of Canada’s electricity strategy heading into 2035.

For more details, read How Canada’s Electricity Landscape Will Evolve from 2026 to 2035, by Lucas Bettle.

Continued Expansion of Solar and Wind

Solar power is one of the fastest-growing parts of Canada’s electricity sector.

More than 25 major solar projects are now underway or planned, investing roughly $5.7 billion. 

Wind energy is also moving forward steadily.

Major wind projects in Nova Scotia and Quebec add thousands of megawatts of new capacity. Some are paired with green hydrogen production, signalling broader ambitions beyond electricity.

Hydroelectricity Isn’t Expanding as Quickly

Hydro remains Canada’s largest electricity source. Still, hydro growth appears modest compared to solar and wind.

Large hydro projects are extremely expensive and often located in remote regions. Building new dams and transmission infrastructure takes years, even decades.

One of the largest upcoming developments is the Gull Island project in Labrador, with a price tag of roughly $25 billion.

Nuclear Investment Surges

Nuclear energy now emerges as a big winner in Canada’s long-term electricity plans.

Planned projects account for more than a $67 billion investment in large-scale nuclear facilities and small modular reactors (SMRs). Supporters see nuclear as a reliable, low-emission power source that stabilizes the grid when solar and wind fluctuate.

Canada’s Bet on Natural Gas

Despite clean energy goals, natural gas generation still expands.

Several large projects are planned, particularly in Alberta. Many developers claim carbon capture technology reduces emissions. But questions remain about long-term effectiveness, costs, and scalability.

Storage and Transmission Changes Everything

Electricity storage may become a critical piece of Canada’s future grid.

Large battery systems and pumped hydro storage projects help manage intermittent renewable power by storing excess solar or wind energy for later use when demand rises.

Canada is also investing heavily in transmission infrastructure.

Projects like the Kivalliq Hydro-Fibre Link aim to connect remote communities to cleaner electricity grids for the first time. In Nunavut, that could eventually reduce reliance on diesel generation.

Is Canada Actually on Track with Clean Energy?

Canada is clearly investing in cleaner technologies. Solar, nuclear, storage, and emerging renewable sectors all gain momentum.

But continued reliance on natural gas suggests prioritizing reliability and growing demand just as much as emissions reduction.

By 2035, Canada’s electricity system may be cleaner and more modern. Whether it becomes truly low carbon remains an open question.