Energy
Federal Clean Power Plan Risks Blackouts And Higher Bills

From the Frontier Centre for Public Policy
Ottawa’s Clean Electricity Regulations could derail Canada’s energy future. Here’s what we need to do
The federal government’s push to make Canada’s electricity system net-zero is running straight into reality—and it’s not pretty.
Through the Clean Electricity Regulations (CER), the government wants all provinces to eliminate greenhouse gas emissions from electricity generation by 2035. It is an ambitious goal, but one that ignores a basic fact: demand for electricity is exploding, and provinces are struggling to keep up.
New technologies like artificial intelligence are supercharging this demand. AI systems, including tools such as ChatGPT, rely on massive data centres—huge warehouses of computer servers that need constant cooling and enormous amounts of electricity to function. According to a recent Royal Bank of Canada report, if all proposed data centre projects in Canada move ahead, they would consume 14 per cent of the country’s entire electricity supply by 2030. That is roughly the same as projections in the United States, where data centres are expected to use up to 15 per cent of the national total.
This is a serious problem. Provinces such as Alberta and Saskatchewan have already raised the alarm, arguing that the federal regulations overstep Ottawa’s constitutional authority. Energy supply, like natural resources, has traditionally been under provincial control. Alberta and Ontario operate their own electricity markets to attract investment and ensure reliability. Federal regulations threaten to undermine these efforts, adding risk and driving up costs.
The situation is already tense. Alberta, for example, issued multiple grid alerts in 2024 due to shortages and market disruptions. The province is now looking at “behind-the-fence” power solutions, encouraging data centres to generate their own electricity to guarantee stability.
Canada was not always in this bind. For decades, we enjoyed an abundance of clean, affordable hydroelectric power. Provinces like Quebec, British Columbia, Manitoba and Newfoundland and Labrador built massive hydro projects starting in the 1960s, creating cheap power and even surpluses to export to U.S. markets. In 2022, for example, B.C. sent 74 per cent of its exported power to the U.S., while Quebec sent 63 per cent and Ontario an impressive 81 per cent, generating billions in revenue.
But that era is coming to an end. Most of the best sites for hydro dams have already been developed. New projects would require expensive, long-distance transmission lines to bring power from remote areas to the cities that need it. On top of that, growing environmental concerns make new dam construction an uphill battle.
The truth is, there is no quick fix. A 2025 study by the Fraser Institute paints a grim picture: to meet future electricity demand solely with solar power would require 1,680 years of construction. Wind power? About 1,150 years. Even hydro would take close to a millennium. Even if we combined these sources, we are still looking at more than 1,000 years to build enough capacity.
Meanwhile, federal projections estimate that Canada’s electricity demand will double by 2050.
Without significant policy changes, Canadians could soon face the worst of both worlds: soaring electricity bills and the threat of power shortages. Our economy could also suffer as companies and data centres look to other jurisdictions with more reliable power supplies.
So what should Canada do? Here are three practical steps:
- Scrap the Clean Electricity Regulations. Provinces like Alberta and Saskatchewan are already committed to reaching net-zero by 2050. Federal interference only creates unnecessary political battles and delays investments.
- Fast-track approvals for new interprovincial transmission lines. Today, building a new transmission line can take more than a decade. Speeding up this process would help provinces share power and avoid costly overbuilding of generation capacity.
- Launch a major low-interest loan program to build new power infrastructure. We need to dramatically expand our generation and transmission systems, including natural gas-fired plants, to meet future demand.
Canadians deserve a reliable, affordable and clean energy future. But we will not get there by ignoring the realities of rising demand and provincial responsibilities. It is time for the federal government to listen to the provinces, embrace practical solutions and avoid an avoidable crisis.
Otherwise, we are on track for blackouts, higher bills and missed economic opportunities.
Maureen McCall is an energy business analyst and Fellow at the Frontier Center for Public Policy. She writes on energy issues for EnergyNow and the BOE Report. She has 20 years of experience as a business analyst for national and international energy companies in Canada.
Alberta
Unified message for Ottawa: Premier Danielle Smith and Premier Scott Moe call for change to federal policies

United in call for change: Joint statement |
“Wednesday, Alberta’s and Saskatchewan’s governments came together in Lloydminster to make a unified call for national change.
“Together, we call for an end to all federal interference in the development of provincial resources by:
- repealing or overhauling the Impact Assessment Act to respect provincial jurisdiction and eliminate barriers to nation-building resource development and transportation projects;
- eliminating the proposed oil and gas emissions cap;
- scrapping the Clean Electricity Regulations;
- lifting the oil tanker ban off the northern west coast;
- abandoning the net-zero vehicle mandate; and
- repealing any federal law or regulation that purports to regulate industrial carbon emissions, plastics or the commercial free speech of energy companies.
“The federal government must remove the barriers it created and fix the federal project approval processes so that private sector proponents have the confidence to invest.
“Starting with additional oil and gas pipeline access to tidewater on the west coast, our provinces must also see guaranteed corridor and port-to-port access to tidewater off the Pacific, Arctic and Atlantic coasts. This is critical for the international export of oil, gas, critical minerals, agricultural and forestry products, and other resources. Accessing world prices for our resources will benefit all Canadians, including our First Nations partners.
“Canada is facing a trade war on two fronts. The People’s Republic of China’s ‘anti-discrimination’ tariffs imposed on Canadian agri-food products have significant impacts on the West. We continue to call on the federal government to prioritize work towards the removal of Chinese tariffs. Recently announced tariff increases, on top of pre-existing tariffs, by the United States on Canadian steel and aluminum products are deeply concerning. We urge the Prime Minister to continue his work with the U.S. administration to seek the removal of all tariffs currently being imposed by the U.S. on Canada.
“Alberta and Saskatchewan agree that the federal government must change its policies if it is to reach its stated goal of becoming a global energy superpower and having the strongest economy in the G7. We need to have a federal government that works with, rather than against, the economic interests of Alberta and Saskatchewan. Making these changes will demonstrate the new Prime Minister’s commitment to doing so. Together, we will continue to fight to deliver on the immense potential of our provinces for the benefit of the people of Saskatchewan and Alberta.”
Alberta
Calls for a new pipeline to the coast are only getting louder

From Resource Works
Alberta wants a new oil pipeline to Prince Rupert in British Columbia.
Calls on the federal government to fast-track new pipelines in Canada have grown. But there’s some confusion that needs to be cleared up about what Ottawa’s intentions are for any new oil and gas pipelines.
Prime Minister Carney appeared to open the door for them when he said, on June 2, that he sees opportunity for Canada to build a new pipeline to ship more oil to foreign markets, if it’s tied to billions of dollars in green investments to reduce the industry’s environmental footprint.
But then he confused that picture by declaring, on June 6, that new pipelines will be built only with “a consensus of all the provinces and the Indigenous people.” And he added: “If a province doesn’t want it, it’s impossible.”
And BC Premier David Eby made it clear on June 2 that BC doesn’t want a new oil pipeline, nor does it want Ottawa to cancel the related ban on oil tankers steaming through northwest BC waters. These also face opposition from some, but not all, First Nations in BC.
Eby’s energy minister, Adrian Dix, also gave thumbs-down to a new oil pipeline, but did say BC supports expanding the capacity of the existing Trans Mountain TMX oil pipeline, and the dredging of Burrard Inlet to allow bigger oil tankers to load Alberta oil from TMX at the port of Vancouver.
While the feds sort out what their position is on fast-tracking new pipelines, Alberta Premier Danielle Smith leaped on Carney’s talk of a new oil pipeline if it’s tied to lowering the carbon impact of the Alberta oilsands and their oil.
She saw “a grand bargain,” with, in her eyes, a new oil pipeline from Alberta to Prince Rupert, BC, producing $20 billion a year in revenue, some of which could then be used to develop and install carbon-capture mechanisms for the oil.
She noted that the Pathways Alliance, six of Canada’s largest oilsands producers, proposed in 2021 a carbon-capture network and pipeline that would transport captured CO₂ from some 20 oilsands facilities, by a new 400-km pipeline, to a hub in the Cold Lake area of Alberta for permanent underground storage.
Preliminary estimates of the cost of that project run up to $20 billion.
The calls for a new oil pipeline from Bruderheim, AB, to Prince Rupert recall the old Northern Gateway pipeline project that was proposed to run from Alberta to Kitimat, BC.
That was first proposed by Enbridge in 2008, and there were estimates that it would mean billions in government revenues and thousands of jobs.
In 2014, Conservative prime minister Stephen Harper approved Northern Gateway. But in 2015, the Federal Court of Appeal overruled the Harper government, ruling that it had “breached the honour of the Crown by failing to consult” with eight affected First Nations.
Then the Liberal government of Prime Minister Justin Trudeau, who succeeded Harper in 2015, effectively killed the project by instituting a ban on oil tanker traffic on BC’s north coast shortly after taking office.
Now Danielle Smith is working to present Carney with a proponent and route for a potential new crude pipeline from Alberta to Prince Rupert.
She said her government is in talks with Canada’s major pipeline companies in the hope that a private-sector proponent will take the lead on a pipeline to move a million barrels a day of crude to the BC coast.
She said she hopes Carney, who won a minority government in April, will make good on his pledge to speed permitting times for major infrastructure projects. Companies will not commit to building a pipeline, Smith said, without confidence in the federal government’s intent to bring about regulatory reform.
Smith also underlined her support for suggested new pipelines north to Grays Bay in Nunavut, east to Churchill, Manitoba, and potentially a new version of Energy East, a proposed, but shelved, oil pipeline to move oil from Alberta and Saskatchewan to refineries and a marine terminal in the Maritimes.
The Energy East oil pipeline was proposed in 2013 by TC Energy, to move Western Canadian crude to an export terminal at St. John, NB, and to refineries in eastern Canada. It was mothballed in 2017 over regulatory hurdles and political opposition in Quebec.
A separate proposal known as GNL Quebec to build a liquefied natural gas pipeline and export terminal in the Saguenay region was rejected by both federal and provincial authorities on environmental grounds. It would have diverted 19.4 per cent of Canadian gas exports to Europe, instead of going to the US.
Now Quebec’s environment minister Benoit Charette says his government would be prepared to take another look at both projects.
The Grays Bay idea is to include an oil pipeline in a corridor that would run from northern BC to Grays Bay in Nunavut. Prime Minister Carney has suggested there could be opportunities for such a pipeline that would carry “decarbonized” oil to new markets.
There have also been several proposals that Canada should build an oil pipeline, and/or a natural gas pipeline, to the port of Churchill. One is from a group of seven senior oil and gas executives who in 2017 suggested the Western Energy Corridor to Churchill.
Now a group of First Nations has proposed a terminal at Port Nelson, on Hudson Bay near Churchill, to ship LNG to Europe and potash to Brazil. And the Manitoba government is looking at the idea.
“There is absolutely a business case for sending our LNG directly to European markets rather than sending our natural gas down to the Gulf Coast and having them liquefy it and ship it over,” says Robyn Lore of project backer NeeStaNan. “It’s in Canada’s interest to do this.”
And, he adds: “The port and corridor will be 100 per cent Indigenous owned.”
Manitoba Premier Wab Kinew has suggested that the potential trade corridor to Hudson Bay could handle oil, LNG, hydrogen, and potash slurry. (One obvious drawback, though, winter ice limits the Hudson Bay shipping season to four months of the year, July to October.)
All this talk of new pipelines comes as Canada begins to look for new markets to reduce reliance on the US, following tariff measures from President Donald Trump.
Alberta Premier Smith says: “I think the world has changed dramatically since Donald Trump got elected in November. I think that’s changed the national conversation.”
And she says that if Carney wants a true nation-building project to fast-track, she can’t think of a better one than a new West Coast oil pipeline.
“I can’t imagine that there will be another project on the national list that will generate as much revenue, as much GDP, as many high paying jobs as a bitumen pipeline to the coast.”
Now we need to know what Mark Carney’s stance on pipelines really is: Is it fast-tracking them to reduce our reliance on the US? Or is it insisting that, for a pipeline, “If a province doesn’t want it, it’s impossible.”
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