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The document analyzes how Denmark, Norway, Sweden, and Finland created a highly integrated electricity market, notably through the Nord Pool exchange, to balance variable renewable energy with hydroelectric storage. It argues that Canada's 'balkanized' grid, characterized by provincial control and political resistance, could benefit from similar bilateral exchanges—specifically linking hydroelectric-rich provinces like Quebec, Manitoba, and British Columbia with those transitioning from fossil fuels—to lower costs and achieve carbon neutrality by 2050.

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  • Denmark's success in variable renewable energy, with wind power providing 47% of national electricity consumption in 2021, relied on strong interconnections with Nordic neighbors to provide backup power and a market for surplus energy.
  • The Nordic model demonstrates that hydroelectric resources can act as 'batteries' for variable renewables; for example, Norway exports surplus hydro during wet periods to compensate for wind shortages and imports electricity during dry periods to preserve reservoirs.
  • Nord Pool, established in the 1990s following market deregulation in Norway and Sweden, has become Europe's largest electricity market, exchanging 995 TWh of electricity in 2020 across Nordic, Baltic, and other European countries.
  • Canada's electricity grid is described as 'highly balkanized,' with provinces prioritizing local procurement and maintaining concentrated decision-making power, which hinders the regional interconnections needed for decarbonization.
  • Increasing transmission capacity between Quebec and New England by 4 gigawatts could reduce the cost of zero-emission electricity across the network by 17% to 28%, provided Quebec shifts from a baseload provider to a storage system supporting wind and solar.
  • Sweden aims for 100% renewable energy by 2040, which requires replacing nuclear power (which accounted for 40% of production in 2017) with variable sources and investing in a legacy transmission grid plagued by bottlenecks.
  • Interprovincial cooperation in Canada faces significant political obstacles, including deep divisions over Labrador's hydroelectric transport between Quebec and Newfoundland, and mistrust from Atlantic provinces toward Quebec's market ambitions.

Cite the original document

APA
Canadian Climate Institute (2022). Coopération nordique et provincialisme canadien. https://institutclimatique.ca/publications/cooperation-nordique-et-provincialisme-canadien/
Chicago
Canadian Climate Institute. Coopération nordique et provincialisme canadien. 2022. https://institutclimatique.ca/publications/cooperation-nordique-et-provincialisme-canadien/.
Wikipedia
{{cite report |author=Canadian Climate Institute |title=Coopération nordique et provincialisme canadien |date=23 March 2022 |url=https://institutclimatique.ca/publications/cooperation-nordique-et-provincialisme-canadien/ |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{canadianclimateinstitute2022coopration, author = {{Canadian Climate Institute}}, title = {{Coopération nordique et provincialisme canadien}}, institution = {Canadian Climate Institute}, year = {2022}, month = mar, url = {https://institutclimatique.ca/publications/cooperation-nordique-et-provincialisme-canadien/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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