The Bottom Line: Why Canada’s Energy Security Hinges on Renewables

The document asserts that Canada's reliance on oil, gas, and coal exposes it to global market volatility and geopolitical risks, as evidenced by record-high fuel prices in 2022. It argues that renewable energy sources like wind and solar are now more cost-effective than fossil fuels and provide long-term price stability because they do not require input fuels. The brief highlights Canada's existing hydroelectric capacity and transmission infrastructure as key assets for integrating variable renewables. It recommends accelerating the electrification of transportation and heating, improving interprovincial grid connectivity, and investing in energy storage to achieve a non-emitting electricity grid by 2035.

• Canada's energy security is compromised by a system dominated by fossil fuels, leaving it vulnerable to global market forces and geopolitics despite being a major producer. In May 2022, this was evidenced by gasoline prices hitting a record high of CAD 2.07 per litre and Alberta natural gas prices reaching CAD 7.54 per MMBtu.
• Renewable energy is now more affordable than fossil fuel alternatives for new power capacity. Solar PV and onshore wind costs have declined by 88% and 68% respectively since 2010, making them cheaper than the lowest-cost fossil fuel options by 11% and 38% respectively.
• Unlike fossil fuels, renewable energy provides long-term price stability because it does not rely on input fuels, meaning operational costs remain low and predictable once infrastructure is connected to the grid.
• Canada is well-positioned to integrate variable renewable energy due to its extensive transmission network (over 160,000 km) and significant hydroelectric capacity, which accounts for approximately 60% of the country's electricity generation and provides necessary grid flexibility.
• Electrifying end-use sectors, specifically transportation and buildings, can further reduce exposure to volatile fuel prices. The federal government aims for 60% of new vehicle sales to be zero-emission by 2030 and no new combustion engine vehicles by 2035.
• To achieve a non-emitting electricity grid by 2035, Canada must prioritize wind, solar, energy storage, and increased interprovincial transmission to overcome current barriers where provinces are often better connected to the U.S. than to each other.

APA

Christensen, L. T., & Dusyk, N. (2022). The Bottom Line: Why Canada’s Energy Security Hinges on Renewables. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-10/bottom-line-canada-energy-security.pdf

Chicago

Christensen, Lasse Toft, and Nichole Dusyk. The Bottom Line: Why Canada’s Energy Security Hinges on Renewables. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-10/bottom-line-canada-energy-security.pdf.

Wikipedia

{{cite report |last1=Christensen |first1=Lasse Toft |last2=Dusyk |first2=Nichole |title=The Bottom Line: Why Canada’s Energy Security Hinges on Renewables |publisher=International Institute for Sustainable Development |date=October 2022 |url=https://www.iisd.org/system/files/2022-10/bottom-line-canada-energy-security.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{christensen2022bottom, author = {Christensen, Lasse Toft and Dusyk, Nichole}, title = {{The Bottom Line: Why Canada’s Energy Security Hinges on Renewables}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = oct, url = {https://www.iisd.org/system/files/2022-10/bottom-line-canada-energy-security.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }