Clean electricity is transforming the global economy

The global economy is undergoing an 'electrotech revolution' driven by drastic cost reductions in solar, wind, and battery technologies, with clean energy investments projected to top US$2 trillion in 2025. Canada is well-positioned due to its low-cost electricity and critical mineral reserves, but faces rising electricity demand in provinces like B.C., Quebec, Ontario, and Alberta that exceeds supply. To compete, the author recommends that Canadian governments strengthen clean electricity regulations and tax credits, support the electrification of heavy industries (such as steel and cement) through blended finance and carbon pricing, and create incentives to develop critical minerals value chains while sharing financial risks with investors.

• A global 'electrotech revolution' is being driven by falling technology prices rather than policy, making solar panels, wind turbines, and batteries routinely cheaper to install than new coal or gas plants. Battery system costs specifically decreased by 40 per cent between 2023 and 2024.
• Global investment in clean energy is reaching record levels, with the IEA projecting it will exceed US$2 trillion in 2025, which is double the projected investment in fossil fuels (oil, gas, and coal). Solar installations grew by 64 per cent in the first half of 2025, reaching 380 GW.
• Canada is experiencing a surge in electricity demand that often exceeds supply in provinces including Alberta, B.C., Ontario, and Quebec, resulting in long waitlists for industrial grid connections and lost investment opportunities.
• To maintain competitiveness, Canada should focus on three policy areas: expanding clean electricity grids through updated procurement and rate-setting rules; supporting industrial electrification in sectors like mining, chemicals, steel, and cement via blended finance and the large emitter trading system (LETS); and incentivizing the critical minerals value chain by sharing financial risks with investors.

APA

Canadian Climate Institute (2025). Clean electricity is transforming the global economy. https://climateinstitute.ca/clean-electricity-is-transforming-the-global-economy/

Chicago

Canadian Climate Institute. Clean electricity is transforming the global economy. 2025. https://climateinstitute.ca/clean-electricity-is-transforming-the-global-economy/.

Wikipedia

{{cite press release |author=Canadian Climate Institute |title=Clean electricity is transforming the global economy |date=8 October 2025 |url=https://climateinstitute.ca/clean-electricity-is-transforming-the-global-economy/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{canadianclimateinstitute2025clean, author = {{Canadian Climate Institute}}, title = {{Clean electricity is transforming the global economy}}, publisher = {Canadian Climate Institute}, year = {2025}, month = oct, url = {https://climateinstitute.ca/clean-electricity-is-transforming-the-global-economy/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }