Cities and Smart Grids in Canada

The report examines the intersection of urban growth, aging electricity infrastructure, and climate change in Canada, arguing that the deployment of smart grid technologies is essential for decarbonization and grid resiliency. It identifies a significant financing gap for modernization, estimating a need for CAD 350 billion in investment over 20 years. The document outlines four emerging business models—Energy Service Provider, Customer Energy Marketplace, Local Balancing Authority, and Smart City—and notes that their adoption varies by region. It highlights barriers to smart grid deployment, including technical complexity, cyber security risks, and regulatory frameworks that treat smart investments as traditional capital infrastructure. The report concludes by calling for a National Vision on Grid Modernization to coordinate stakeholders and align the energy transition with mid-century climate goals.

• Canada's electricity infrastructure is aging and was largely designed for a centralized model with high-capacity transmission lines running over long distances, making it vulnerable to extreme weather and inefficient for modern urban needs.
• Urban agglomeration in Canada is characterized by low-density, automobile-dependent expansion into suburban centers, which increases electricity demand and stresses basic services in both city cores and outskirts.
• Climate change poses significant risks to grid resiliency, including the potential for power peaking patterns to shift from winter to summer in cold climates like Manitoba due to increased demand for cooling.
• There is a substantial investment gap for grid modernization; a 2012 study estimated that CAD 350 billion is needed over 20 years, with smart grid technologies potentially accounting for CAD 70 billion of that total.
• Four emerging business models for smart-grid enabled systems are identified: Energy Service Provider, Customer Energy Marketplace, Local Balancing Authority, and Smart City, though no single model is dominant nationwide.
• The transition to a low-carbon grid is supported by the mandate to phase out coal-fired electricity, with an estimated 93 per cent of 2010 capacity expected to be shut down by 2030.
• Community Energy Plans (CEPs) are used by over 200 Canadian communities to reduce vulnerability to blackouts and integrate renewables, though implementation rates vary significantly.
• The conversion of brownfields into 'brightfields' for renewable energy projects allows generation to be located closer to urban consumption, reducing transmission costs and risks.
• Technical and financial barriers hinder smart grid adoption, including the risk of cyber attacks and regulatory frameworks, such as in Ontario, that categorize smart grid investments as traditional capital infrastructure.
• Smart grids offer a business case by reducing wasteful consumption, matching demand and supply to manage peaks, and minimizing transmission losses, with potential net benefits in Ontario reaching CAD 6.3 billion by 2045.
• The report recommends the creation of a National Vision on Grid Modernization to improve coordination and information sharing between different levels of government and utilities.

APA

Gass, P., Echeverría, D., & Asadollahi, A. (2017). Cities and Smart Grids in Canada. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/cities-smart-grids-canada.pdf

Chicago

Gass, Philip, Daniella Echeverría, and Amin Asadollahi. Cities and Smart Grids in Canada. International Institute for Sustainable Development, 2017. https://www.iisd.org/system/files/publications/cities-smart-grids-canada.pdf.

Wikipedia

{{cite report |last1=Gass |first1=Philip |last2=Echeverría |first2=Daniella |last3=Asadollahi |first3=Amin |title=Cities and Smart Grids in Canada |publisher=International Institute for Sustainable Development |date=September 2017 |url=https://www.iisd.org/system/files/publications/cities-smart-grids-canada.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gass2017cities, author = {Gass, Philip and Echeverría, Daniella and Asadollahi, Amin}, title = {{Cities and Smart Grids in Canada}}, institution = {International Institute for Sustainable Development}, year = {2017}, month = sep, url = {https://www.iisd.org/system/files/publications/cities-smart-grids-canada.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }