Improving integration and coordination of provincially-managed electricity systems in Canada

The paper analyzes the diverse structures of Canadian provincial electricity markets, noting that a lack of coordination creates economic inefficiencies and hinders the integration of renewable energy. It identifies six primary challenges to integration, including constitutional jurisdictions and vested interests in price differentials. To address these, the author proposes four strategies: enhancing bilateral projects, adopting a bottom-up Nordic-style collaborative model, utilizing the Canadian Free Trade Agreement, or implementing a federal healthcare-type framework of shared principles.

• Canadian provincial electricity markets are highly fragmented, with average prices in 2019 ranging from 7 to 16 ¢/kWh and per capita consumption varying significantly, with Quebec exceeding 20,000 kWh while Prince Edward Island and Ontario use approximately 9,000 kWh.
• Provincial electricity market structures fall into three main categories: vertically integrated Crown corporations with little competition (e.g., B.C., Quebec, Manitoba), vertically integrated private companies (Nova Scotia and P.E.I.), and unbundled sectors with open wholesale and retail competition (Alberta and Ontario).
• The lack of integration creates three primary opportunities for improvement: increasing economic efficiency by reducing price differentials, facilitating the integration of intermittent renewables by utilizing hydro reservoirs in B.C., Manitoba, Quebec, and Newfoundland and Labrador for storage, and supporting the diffusion of technological innovations like electric vehicles and smart homes.
• Six major challenges impede electricity integration in Canada: constitutional provincial jurisdiction over energy, a lack of integrated governmental vision and governance, heterogeneous market institutions, vested interests in maintaining price differentials, concerns over energy security and independence, and conservative path-dependent regulatory frameworks.
• The author proposes four strategies for increasing collaboration: (1) enhancing bilateral projects with federal support, (2) a bottom-up approach inspired by the Nordic model of voluntary regional institutions, (3) a free trade strategy using the Canadian Free Trade Agreement's 'Regulatory Reconciliation and Cooperation' process, and (4) a federal 'healthcare-type' strategy where funding is tied to shared principles of portability and accessibility.

APA

Pineau, P.-O. (n.d.). Improving integration and coordination of provincially-managed electricity systems in Canada. Canadian Climate Institute. https://climateinstitute.ca/wp-content/uploads/2021/09/CICC-Improving-integration-and-coordination-of-provincially-managed-electricity-systems-in-Canada-by-Pierre-Olivier-Pineau-FINAL.pdf

Chicago

Pineau, Pierre-Olivier. Improving integration and coordination of provincially-managed electricity systems in Canada. Canadian Climate Institute, n.d. https://climateinstitute.ca/wp-content/uploads/2021/09/CICC-Improving-integration-and-coordination-of-provincially-managed-electricity-systems-in-Canada-by-Pierre-Olivier-Pineau-FINAL.pdf.

Wikipedia

{{cite report |last1=Pineau |first1=Pierre-Olivier |title=Improving integration and coordination of provincially-managed electricity systems in Canada |publisher=Canadian Climate Institute |url=https://climateinstitute.ca/wp-content/uploads/2021/09/CICC-Improving-integration-and-coordination-of-provincially-managed-electricity-systems-in-Canada-by-Pierre-Olivier-Pineau-FINAL.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{pineaundimproving, author = {Pineau, Pierre-Olivier}, title = {{Improving integration and coordination of provincially-managed electricity systems in Canada}}, institution = {Canadian Climate Institute}, url = {https://climateinstitute.ca/wp-content/uploads/2021/09/CICC-Improving-integration-and-coordination-of-provincially-managed-electricity-systems-in-Canada-by-Pierre-Olivier-Pineau-FINAL.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }