Why Canada’s Energy Security Hinges on Renewables

This policy brief by the International Institute for Sustainable Development (IISD) argues that Canada can enhance its energy security by transitioning from volatile fossil fuel markets to a renewable-based electrified system. It asserts that wind and solar are now more cost-effective than gas or coal and that Canada's existing hydroelectric capacity provides the necessary flexibility to integrate variable renewable energy without compromising grid reliability.

• Canada's energy security is currently compromised by a heavy reliance on oil, gas, and coal, which leaves the country vulnerable to global market volatility and geopolitical events, regardless of its status as a major producer. This was evidenced in May 2022 when gasoline prices reached a record CAD 2.07 per litre and natural gas prices hit a record CAD 7.54 per MMBtu.
• Renewable energy technologies, specifically wind and solar, have become more affordable than fossil fuel-based power. Because they do not require input fuels, they offer long-term price stability and are less susceptible to the price spikes associated with global fuel markets.
• Canada is well-positioned to maintain a reliable electricity grid while increasing its share of variable renewables. This is supported by over 160,000 km of transmission lines and a hydroelectricity capacity that accounts for approximately 60% of the country's electricity generation, which can be used to balance supply and demand.
• The electrification of transportation and buildings can further shield Canadians from fossil fuel price volatility. The federal government aims for 60% of new vehicle sales to be zero-emission by 2030 and no new combustion engine vehicles by 2035. Additionally, adopting electric heat pumps and energy retrofits in buildings—which account for a quarter of Canada's final energy consumption—would reduce exposure to natural gas prices.
• To achieve a non-emitting electricity grid by 2035, Canada must prioritize investments in wind, solar, energy storage, and improved interprovincial transmission. Currently, Canadian provinces are more connected to the United States than to each other, representing a barrier to maximizing domestic renewable resources.
• Evidence from Alberta shows that wind and solar are already cheaper for new power than gas. Between 2019 and 2021, Alberta added 1.6 GW of wind and solar, which constituted 17% of its total capacity by 2021.

APA

Christensen,, N. D. T. (2022). Why Canada’s Energy Security Hinges on Renewables. International Institute for Sustainable Development. https://www.iisd.org/articles/deep-dive/canadian-energy-security-renewables

Chicago

Christensen,, Nichole Dusyk,Lasse Toft. Why Canada’s Energy Security Hinges on Renewables. International Institute for Sustainable Development, 2022. https://www.iisd.org/articles/deep-dive/canadian-energy-security-renewables.

Wikipedia

{{cite report |last1=Christensen, |first1=Nichole Dusyk,Lasse Toft |title=Why Canada’s Energy Security Hinges on Renewables |publisher=International Institute for Sustainable Development |date=3 October 2022 |url=https://www.iisd.org/articles/deep-dive/canadian-energy-security-renewables |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{christensen2022why, author = {Christensen,, Nichole Dusyk,Lasse Toft}, title = {{Why Canada’s Energy Security Hinges on Renewables}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = oct, url = {https://www.iisd.org/articles/deep-dive/canadian-energy-security-renewables}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }