CLEAN ELECTRICITY, AFFORDABLE ENERGY

The report argues that federal funding from Budget 2023 can help provinces modernize electricity grids and reduce the cost of transitioning to net zero. While electricity rates may rise modestly, the shift to more efficient electric technologies like heat pumps and electric vehicles is projected to lower average household energy spending by 12% by 2050. The authors emphasize that provinces should adopt targeted policy tools, such as means-tested fixed charges, to ensure energy affordability for low- and middle-income households.

• Federal Budget 2023 provides substantial financial support for clean electricity, including $3 billion over 13 years for the Smart Renewables and Electrification Pathways (SREP) program, an estimated $25.7 billion via the Clean Electricity Investment Tax Credit (ITC) between 2024 and 2035, and at least $20 billion in preferential financing from the Canada Infrastructure Bank.
• Provinces with more emissions-intensive grids—specifically Alberta, Saskatchewan, Nova Scotia, and New Brunswick—are positioned to benefit most from federal support relative to their current capacity, receiving 33% more funding per Gigawatt of installed capacity than hydro-rich provinces.
• Average household energy spending, including both energy bills and equipment costs, is projected to decrease by 12% between the present and 2050 under a net zero transition, as households switch from fossil fuels to more efficient electric vehicles and heat pumps.
• While electricity rates are expected to rise modestly in most provinces by 2050, these increases are expected to be offset by lower overall energy costs and the reduced volatility associated with moving away from fossil fuels.
• To prevent the energy transition from disproportionately impacting low- and middle-income households, provinces could implement means-tested fixed charges for electricity transmission and distribution, which could result in savings for low-income households amounting to 1.3% of their average income.

APA

Canadian Climate Institute (2023). CLEAN ELECTRICITY, AFFORDABLE ENERGY. https://climateinstitute.ca/wp-content/uploads/2023/06/Clean-Electricity-Affordable-Energy.pdf#page=6

Chicago

Canadian Climate Institute. CLEAN ELECTRICITY, AFFORDABLE ENERGY. 2023. https://climateinstitute.ca/wp-content/uploads/2023/06/Clean-Electricity-Affordable-Energy.pdf#page=6.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=CLEAN ELECTRICITY, AFFORDABLE ENERGY |date=June 2023 |url=https://climateinstitute.ca/wp-content/uploads/2023/06/Clean-Electricity-Affordable-Energy.pdf#page=6 |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitute2023clean, author = {{Canadian Climate Institute}}, title = {{CLEAN ELECTRICITY, AFFORDABLE ENERGY}}, institution = {Canadian Climate Institute}, year = {2023}, month = jun, url = {https://climateinstitute.ca/wp-content/uploads/2023/06/Clean-Electricity-Affordable-Energy.pdf#page=6}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }