The consensus for smart metering is Sensus

Coal-to-Clean Energy Hubs leverage Bipartisan Infrastructure Law and Inflation Reduction Act funding to repurpose mine lands with microgrids, advanced nuclear, carbon capture, and rare earth processing, boosting energy security, jobs, and grid modernization.

Key Points

They are federal projects converting coal communities and mine lands into clean energy hubs, repurposing infrastructure.

✅ DOE demos on mine lands: microgrids, nuclear, carbon capture.

✅ Funding from BIL, CHIPS and IRA targets energy communities.

✅ Rare earths from coal waste bolster EV supply chains.

The Biden administration is channeling hundreds of millions of dollars in clean energy funding from recent legislation into its efforts to turn coal communities into clean energy hubs, the White House said.

The administration gave an update on its push across agencies to kick-start projects nationwide with funding Congress approved during Biden’s first two years in office. The effort includes $450 million from the Bipartisan Infrastructure Law that the Department of Energy will allocate to an array of new clean energy demonstration projects on former mine lands.

“These projects could focus on a range of technologies from microgrids to advanced nuclear to power plans with carbon capture,” Energy Secretary Jennifer Granholm said on a call with reporters Monday. “They’ll prove out the potential to reactivate or repurpose existing infrastructure like transmission lines and substations across an aging U.S. power grid, and these projects could spur new economic development in these communities.”

Among the projects the White House highlighted, it said $16 million from the infrastructure law will go to the University of North Dakota and West Virginia University to create design studies for the first-ever full-scale refinery facility in the U.S. that could extract and separate rare earth elements and minerals from coal mine waste streams. The materials are critical for electric vehicle-battery components that are currently heavily sourced from outside the U.S.

“Those efforts will pave the way toward building a first of its kind facility that produces essential materials for solar panels, wind turbines, EVs and more while cleaning up polluted land and water and creating good-paying jobs for local workers,” Granholm said.

Biden created an interagency working group focused on revitalizing coal-power communities through federal investments when he took office. In 2021, the group selected 25 priority areas ranging from West Virginia to Wyoming to focus on development, as high natural gas prices strengthened the case for clean electricity. There are nearly 18,000 identified mine sites across 1.5 million acres in the United States, according to the White House.

The massive effort fits into a broader Biden administration push to both fight climate change and support communities that have lost economic activity during a transition away from fossil fuel sources such as coal. While Biden’s most ambitious clean energy plans fell flat in Congress in the face of opposition from Republicans and some Democrats after the previous administration’s power plant overhaul, three major laws still unlocked funding for his administration to deploy.

Many of the initiatives are made possible through the Bipartisan Infrastructure Law, Chips and Science Act and the Inflation Reduction Act, even without a clean electricity standard on the books. The task force aims to make sure communities most affected by the changing energy landscape are taking maximum advantage of the federal benefits.

“Those new and expanded operations are coming to energy communities and creating good paying jobs,” Biden’s senior advisor for clean energy innovation and implementation John Podesta said on the call. “These laws can provide substantial federal support to energy communities like capping abandoned oil and gas wells, extracting critical minerals, building battery factories and launching demonstration projects in carbon capture or green hydrogen.”

The administration touted the potential benefits of the Inflation Reduction Act, a bill passed by Democrats to spur clean energy investments last year, even as early assessments show mixed results to date. At the time, U.S. consumers were dealing with decades-high inflation fueled in part by an energy crisis and high gas prices that drove debate — a point Republicans emphasized as the plan moved through Congress.

Deputy Treasury Secretary Wally Adeyemo said the Inflation Reduction Act aims to both “lower the deficit, as well as promote our energy security, lowering energy costs for consumers and combatting climate change.”

“As the Treasury works to implement the law, we’re focused on ensuring that all Americans benefit from the growth of the clean energy economy, particularly those who live in communities that have been dependent on the energy sector for job for a long time,” Adeyemo told reporters. “Economic growth and productivity are higher when all communities are able to reach their full potential.”

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Alberta Electricity Market faces energy-only vs capacity debate as transmission, distribution, and administration fees surge; rural rates rise amid a regulated duopoly of investor-owned utilities, prompting calls for competition, innovation, and lower bills.

Key Points

Alberta's electricity market is an energy-only system with rising delivery charges and limited rural competition.

✅ Energy-only design; capacity market scrapped

✅ Delivery charges outpace energy on monthly bills

✅ Rural duopoly limits competition and raises rates

Last week, Alberta’s new Energy Minister Sonya Savage announced the government, through its new electricity rules, would be scrapping plans to shift Alberta’s electricity to a capacity market and would instead be “restoring certainty in the electricity system.”

The proposed transition from energy only to a capacity market is a contentious subject as a market reshuffle unfolds across the province that many Albertans probably don’t know much about. Our electricity market is not a particularly glamorous subject. It’s complicated and confusing and what matters most to ordinary Albertans is how it affects their monthly bills.

What they may not realize is that the cost of their actual electricity used is often just a small fraction of their bill amid rising electricity prices across the province. The majority on an average electricity bill is actually the cost of delivering that electricity from the generator to your house. Charges for transmission, distribution and franchise and administration fees are quickly pushing many Alberta households to the limit with soaring bills.

According to data from Alberta’s Utilities Consumer Advocate (UCA), and alongside policy changes, in 2004 the average monthly transmission costs for residential regulated-rate customers was below $2. In 2018 that cost was averaging nearly $27 a month. The increase is equally dramatic in distribution rates which have more than doubled across the province and range wildly, averaging from as low as $10 a month in 2004 to over $80 a month for some residential regulated-rate customers in 2018.

Where you live determines who delivers your electricity. In Alberta’s biggest cities and a handful of others the distribution systems are municipally owned and operated. Outside those select municipalities most of Alberta’s electricity is delivered by two private companies which operate as a regulated duopoly. In fact, two investor-owned utilities deliver power to over 95 per cent of rural Alberta and they continue to increase their share by purchasing the few rural electricity co-ops that remained their only competition in the market. The cost of buying out their competition is then passed on to the customers, driving rates even higher.

As the CEO of Alberta’s largest remaining electricity co-op, I know very well that as the price of materials, equipment and skilled labour increase, the cost of operating follows. If it costs more to build and maintain an electricity distribution system there will inevitably be a cost increase passed on to the consumer. The question Albertans should be asking is how much is too much and where is all that money going with these private- investor-owned utilities, as the sector faces profound change under provincial leadership?

The reforms to Alberta’s electricity system brought in by Premier Klein in the late 1900s and early 2000s contributed to a surge in investment in the sector and led to an explosion of competition in both electricity generation and retail. 

More players entered the field which put downward pressure on electricity rates, encouraged innovation and gave consumers a competitive choice, even as a Calgary electricity retailer urged the government to scrap the overhaul. But the legislation and regulations that govern rural electricity distribution in Alberta continue to facilitate and even encourage the concentration of ownership among two players which is certainly not in the interests of rural Albertans.

It is also not in the spirit of the United Conservative Party platform commitment to a “market-based” system. A market-based system suggests more competition. Instead, what we have is something approaching a monopoly for many Albertans. The UCP promised a review of the transition to a capacity market that would determine which market would be best for Alberta, and through proposed electricity market changes has decided that we will remain an energy-only market.
Consumers in rural Alberta need electricity to produce the goods that power our biggest industries. Instead of regulating and approving continued rate increases from private multinational corporations, we need to drive competition and innovation that can push rates down and encourage growth and investment in rural-based industries and communities.

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Renewables 2020 Global Status Report highlights renewable energy gaps beyond power, urging decarbonization in heating, cooling, and transport, greener COVID-19 recovery, market reforms, and rapid energy transition to cut CO2 emissions and fossil fuel dependence.

Key Points

REN21's annual report on renewable energy progress and policy gaps across power, heating, cooling, and transport.

✅ Calls for decarbonizing heating, cooling, and transport.

✅ Warns COVID-19 recovery must avoid fossil fuel lock-in.

✅ Urges market reforms to boost energy efficiency and renewables.

Growth in renewable power has been impressive over the past five years, with over 30% of global electricity now coming from renewables worldwide. But too little is happening in heating, cooling and transport. Overall, global hunger for energy keeps increasing and eats up progress, according to REN21's Renewables 2020 Global Status Report (GSR), released today. The journey towards climate disaster continues, unless we make an immediate switch to efficient and renewable energy in all sectors in the wake of the COVID-19 pandemic.

"Year after year, we report success after success in the renewable power sector. Indeed, renewable power has made fantastic progress. It beats all other fuels in growth and competitiveness. Many national and global organisations already cry victory. But our report sends a clear warning: The progress in the power sector is only a small part of the picture. And it is eaten up as the world's energy hunger continues to increase. If we do not change the entire energy system, we are deluding ourselves," says Rana Adib, REN21's Executive Director.

The report shows that in the heating, cooling and transport sectors, the barriers are still nearly the same as 10 years ago. "We must also stop heating our homes and driving our cars with fossil fuels," Adib claims.

There is no real disruption in the COVID-19 pandemic

In the wake of the extraordinary economic decline due to COVID-19, the IEA predicts energy-related CO2 emissions are expected to fall by up to 8% in 2020. But 2019 emissions were the highest ever, and the relief is only temporary. Meeting the Paris targets would require an annual decrease of at least 7.6% to be maintained over the next 10 years, and UN analysis on NDC ambition underscores the need for faster action. Says Adib: "Even if the lock-downs were to continue for a decade, the change would not be sufficient. At the current pace, with the current system and current market rules, it would take the world forever to come anywhere near a no-carbon system."

"Many recovery packages lock us into a dirty fossil fuel economy"

Recovery packages offer a once-in-a-lifetime chance to make the shift to a low-carbon economy, and green energy investments could accelerate COVID-19 recovery. But according to Adib there is a great risk for this enormous chance to be lost. "Many of these packages include ideas that will instead lock us further into a dirty fossil fuel system. Some directly promote natural gas, coal or oil. Others, though claiming a green focus, build the roof and forget the foundation," she says. "Take electric cars and hydrogen, for example. These technologies are only green if powered by renewables."

Choosing an energy system that supports job creation and social justice

The report points out that "green" recovery measures, such as investment in renewables and building efficiency, are more cost-effective than traditional stimulus measures and yield more returns. It also documents that renewables deliver on job creation, energy sovereignty, accelerated energy access in developing countries, and clean, affordable and sustainable electricity for all objectives worldwide, alongside reduced emissions and air pollution.

"Renewables are now more cost-effective than ever, and recent IRENA analysis shows their potential to decarbonise the energy sector, providing an opportunity to prioritize clean economic recovery packages and bring the world closer to meeting the Paris Agreement Goals. Renewables are a key pillar of a healthy, safe and green COVID-19 recovery that leaves no one behind," said Inger Andersen, Executive Director of the UN Environment Programme (UNEP). "By putting energy transition at the core of economic recovery, countries can reap multiple benefits, from improved air quality to employment generation."

This contrasts with the true cost of fossil fuels, estimated to be USD 5.2 trillion if costs of negative impacts such as air pollution, effects of climate change, and traffic congestion are counted.

Renewable energy systems support energy sovereignty and democracy, empowering citizens and communities, instead of big fossil fuel producers and consumers. "When spending stimulus money, we have to decide: Do we want an energy system that serves some or a system that serves many?", says Adib. "But it's not only about money. We must end any kind of support to the fossil economy, particularly when it comes to heating, cooling and transport. Governments need to radically change the market conditions and rules and demonstrate the same leadership as during the COVID-19 pandemic."

The report finds:

Total final energy demand continues to be on the rise (1.4% annually from 2013 to 2018). Despite significant progress in renewable power generation, the share of renewables in total final energy demand barely increased (9.6% in 2013 to 11% in 2018). Compared to the power sector, the heating, cooling and transport sectors lag far behind (renewable energy share in power, 26%, heating and cooling, 10%, transport, 3%).

Today's progress is largely the result of policies and regulations initiated years ago and focus on the power sector. Major barriers seen in heating, cooling and transport are still almost the same a decade on. Policies are needed to create the right market conditions.

The renewable energy sector employed around 11 million people worldwide in 2018

In 2019, the private sector signed power purchase agreements (PPAs) for a record growth of over 43% from 2018 to 2019 in new renewable power capacity.

The global climate strikes have reached unprecedented levels with millions of people across 150 countries. They have pushed governments to step up climate ambitions. As of April 2020, 1490 jurisdictions - spanning 29 countries and covering 822 million citizens - had issued "climate emergency" declarations, many of which include plans and targets for more renewable-based energy systems.

While some countries are phasing out coal, examples such as Europe's green surge show how renewables can soar as emissions fall, yet others continued to invest in new coal-fired power plants. In addition, funding from private banks for fossil fuel projects has increased each year since the signing of the Paris Agreement, totaling USD 2.7 trillion over the last three years.

"It is clear, renewable power has become mainstream and that is great to see. But the progress in this one sector should not lead us to believe that renewables are a guaranteed success. Governments need to take action beyond economic recovery packages. They also need to create the rules and the environment to switch to an efficient and renewables-based energy system, and action toward 100% renewables is urgently needed worldwide. Globally. Now." concludes Arthouros Zervos, President of REN21.

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Texas Electricity Market Bailout proposes securitization bonds and ERCOT-backed fees after Winter Storm Uri, spreading costs via ratepayer charges on power bills to stabilize generators, co-ops, and retailers and avert bankruptcies and investor flight.

Key Points

State plan to securitize storm debts via ERCOT fees, adding bill charges to stabilize Texas power firms.

✅ Securitization bonds finance unpaid ancillary services and energy costs

✅ ERCOT fee spreads Winter Storm Uri debts across ratepayers statewide

✅ Aims to prevent bankruptcies, preserve grid reliability, reassure investors

An approximately $2.5 billion plan to bail out Texas’ distressed electricity market from the financial crisis caused by Winter Storm Uri in February has been approved by the Texas House.

The legislation would impose a fee — likely for the next decade or longer — on electricity companies, which would then get passed on to residential and business customers in their power bills, even as some utilities waived certain fees earlier in the crisis.

House lawmakers sent House Bill 4492 to the Senate on Thursday after a 129-15 vote. A similar bill is advancing in the Senate.

Some of the state’s electricity providers and generators are financially underwater in the aftermath of the February power outages, which left millions without power and killed more than 100 people. Electricity companies had to buy whatever power was available at the maximum rate allowed by Texas regulations — $9,000 per megawatt hour — during the week of the storm (the average price for power in 2020 was $22 per megawatt hour). Natural gas fuel prices also spiked more than 700% during the storm.

Several companies are nearing default on their bills to the Electric Reliability Council of Texas, which manages the Texas power grid that covers most of the state and facilitates financial transactions in it.

Rural electric cooperatives were especially hard hit; Brazos Electric Power Cooperative, which supplies electricity to 1.5 million customers, filed for bankruptcy citing a $1.8 billion debt to ERCOT.

State Rep. Chris Paddie, R-Marshall, the bill’s author, said a second bailout bill will be necessary during the current legislative session for severely distressed electric cooperatives.

“This is a financial crisis, and it’s a big one,” James Schaefer, a senior managing director at Guggenheim Partners, an investment bank, told lawmakers at a House State Affairs Committee hearing in early April. He warned that more bankruptcies would cause higher costs to customers and hurt the state’s image in the eyes of investors.

“You’ve got to free the system,” Schaefer said. “It’s horrible that a bunch of folks have to pay, but it’s a system-wide failure. If you let a bunch of folks crash, it’s not a good look for your state.”

If approved by the Senate and Gov. Greg Abbott, a newly-created Texas Electric Securitization Corp. would use the money raised from the fees for bonds to help pay the companies’ debts, including costs for ancillary services, a financial product that helps ensure power is continuously generated and improve electricity reliability across the grid.

Paddie told his colleagues Wednesday that he could not yet estimate how long the new fee would be imposed, but during committee hearings lawmakers estimated it’s likely to be at least a decade. Several other bills to spread out the costs of the winter storm and consider market reforms are also moving through the Legislature.

ERCOT’s independent market monitor recommended in March that energy sold during that period be repriced at a lower rate, which would have allowed ERCOT to claw back about $4.2 billion in payments to power generators, but the Public Utility Commission declined to do so, even as a court ruling on plant obligations in emergencies drew scrutiny among market participants.

Instead, lawmakers are pushing for bailouts that several energy experts have said is needed, both to ensure distressed companies don’t pass enormous costs on to their customers and to prevent electricity investors and companies from leaving the state if it’s viewed as too risky to continue doing business.

Becky Klein, an energy consultant in Austin and former chair of the Public Utility Commission who played a key role in de-regulating Texas’ electricity market two decades ago, said during a retail electricity panel hosted by Integrate that legislation is necessary to provide “some kind of backstop during a crazy market crisis like this to show the financial market that we’re willing to provide some relief.”

Still, some lawmakers are concerned with how they will win public support, including potential voter-approved funding measures, for bills to bail out the state’s electricity market.

“I have to go back to Laredo and say, ‘I know you didn’t have electricity for several days, but now I’m going to make you pay a little more for the next 20 years,’” state Rep. Richard Peña Raymond, D-Laredo, said during an early April discussion on the plan in the House State Affairs Committee. He said he voted for the bill because it’s in the best interest of the state.

Paddie, during the same committee hearing, acknowledged that “none of us want to increase fees or taxes.” However, he said, “We have to deal with the reality set before us.”

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Canada Clean Electricity leads decarbonization, slashing power-sector emissions through coal phase-out, renewables like hydro, wind, and solar, and nuclear. Provinces cut carbon intensity, enabling electrification of transport and buildings toward net-zero goals.

Key Points

Canada Clean Electricity is the shift to low-emission power by phasing out coal and scaling renewables and nuclear.

✅ 38% cut in electricity emissions since 2005; 84% fossil-free power.

✅ Provinces lead coal phase-out; carbon intensity plummets.

✅ Enables EVs, heat pumps, and building electrification.

It's our country’s one big climate success so far.

"All across Canada, electricity generation has been getting much cleaner. It's our country’s one big climate success so far,"

To illustrate how quickly electric power is being cleaned up, what's still left to do, and the benefits it brings, I've dug into Canada's latest emissions inventory and created a series of charts below.

The sector that could

Climate pollution by Canadian economic sector, 2005 to 2017My first chart shows how Canada's economic sectors have changed their climate pollution since 2005.

While most sectors have increased their pollution or made little progress in the climate fight, our electricity sector has shined.

As the green line shows, Canadians have eliminated an impressive 38 per cent of the climate pollution from electricity generation in just over a decade.

To put these shifts into context, I've shown Canada's 2020 climate target on the chart as a gray star. This target was set by the Harper government as part of the global Copenhagen Accord. Specifically, Canada pledged to cut our climate pollution 17 per cent below 2005 levels under evolving Canadian climate policy frameworks of the time.

As you can see, the electricity sector is the only one to have done that so far. And it didn’t just hit the target — it cut more than twice as much.

Change in Canada's electricity generation, 2005 to 2017My next chart shows how the electricity mix changed. The big climate pollution cuts came primarily from reductions in coal burning, highlighting the broader implications of decarbonizing Canada's electricity grid for fuel choices.

The decline in coal-fired power was replaced (and then some) by increases in renewable electricity and other zero-emissions sources — hydro, wind, solar and nuclear.

As a result, Canada's overall electricity generation is now 84 per cent fossil free.

Every province making progress

A primary reason why electricity emissions fell so quickly is because every province worked to clean up Canada's electricity together.

Change in Canadian provincial electricity carbon intensity, 2005 to 2017

My next chart illustrates this rare example of Canada-wide climate progress. It shows how quickly the carbon-intensity of electricity generation has declined in different provinces.

(Note: carbon-intensity is the amount of climate pollution emitted per kilowatt-hour of electricity generated: gCO2e/kWh).

Ontario clearly led the way with an amazing 92 per cent reduction in climate pollution per kWh in just twelve years. Most of that came from ending the burning of coal in their power plants. But a big chunk also came from cutting in half the amount of natural gas they burn for electricity.

Manitoba, Quebec and B.C. also made huge improvements.

Even Alberta and Saskatchewan, which were otherwise busy increasing their overall climate pollution, made progress in cleaning up their electricity.

These real-world examples show that rapid and substantial climate progress can happen in Canada when a broad-spectrum of political parties and provinces decide to act.

Most Canadians now have superclean electricity

As a result of this rapid cleanup, most Canadians now have access to superclean energy.

Canadian provincial electricity carbon intensity in 2017

Who has it? And how clean is it?

The biggest climate story here is the superclean electricity generated by the four provinces shown on the left side — Quebec, Manitoba, B.C. and Ontario. Eighty per cent of Canadians live in these provinces and have access to this climate-safe energy source.

Those living in Alberta and Saskatchewan, however, still have fairly dirty electricity — as shown in orange on the right — and options like bridging the electricity gap between Alberta and B.C. could accelerate progress in the West.

A lot more cleanup must happen here before the families and businesses in these provinces have a climate-safe energy supply.

What's left to do?

Canada's electricity sector has two big climate tasks remaining: finishing the cleanup of existing power and generating even more clean energy to replace fossil fuels like the gasoline and natural gas used by vehicles, factories and other buildings.

Finishing the clean up

Climate pollution from Canadian provincial electricity 2005 and 2017

As we saw above, more than a third of the climate pollution from electricity has already been eliminated. That leaves nearly two-thirds still to clean up.

Back in 2005, Canada's total electricity emissions were 125 million tonnes (MtCO2).

Over the next twelve years, emissions fell by more than a third (-46 MtCO2). Ontario did most of the work by cutting 33 MtCO2. Alberta, New Brunswick and Nova Scotia made the next biggest cuts of around 4 MtCO2 each.

Now nearly eighty million tonnes of climate pollution remain.

As you can see, nearly all of that now comes from Alberta and Saskatchewan. As a result, continuing Canada's climate progress in the power sector now requires big cuts in the electricity emissions from these two provinces.

Generating more clean electricity

The second big climate task remaining for Canada's electricity is to generate more clean electricity to replace the fossil fuels burned in other sectors. My next chart lets you see how big a task this is.

Clean electricity generation by Canadian province, 2017

It shows how much climate-safe electricity is currently generated in major provinces. This includes zero-emissions renewables (blue bars) and nuclear power (pale blue).

Quebec tops the list with 191 terawatt-hours (TWh) per year. While impressive, it only accounts for around half of the energy Quebecers use. The other half still comes from climate-damaging fossil fuels and to replace those, Quebec will need to build out more clean energy.

The good news here is that electricity is more efficient for most tasks, so fossil fuels can be replaced with significantly less electric energy. In addition, other efficiency and reduction measures can further reduce the amount of new electricity needed.

Newfoundland and Labrador is in the best situation. They are the only province that already generates more climate-safe electricity than they would need to replace all the fossil fuels they burn. They currently export most of that clean electricity.

At the other extreme are Alberta and Saskatchewan. These provinces currently produce very little climate-safe energy. For example, Alberta's 7 TWh of climate-safe electricity is only enough to cover 1 per cent of the energy used in the province.

All told, Canadians currently burn fossil fuels for three-quarters of the energy we use. To preserve a safe-and-sane climate, most provinces will soon need lots more clean electricity in the race to net-zero to replace the fossil fuels we burn.

How soon will they need it?

According to the most recent report from the International Panel on Climate Change (IPCC), avoiding a full-blown climate crisis will require humanity to cut emissions by 45 per cent over the next decade.

Using electricity to clean up other sectors

Finally, let's look at how electricity can help clean up two of Canada’s other high-emission sectors — transportation and buildings.

Cleaning up transportation

Transportation is now the second biggest climate polluting sector in Canada (after the oil and gas industry). So, it’s a top priority to reduce the amount of gasoline we use.

Canadian provincial electricity carbon intensity in 2017, plus gasoline equivalent

Switching to electric vehicles (EVs) can reduce transportation emissions by a little, or a lot. It depends on how clean the electricity supply is.

To make it easy to compare gasoline to each province's electricity I've added a new grey-striped zone at the top of the carbon-intensity chart.

This new zone shows that burning gasoline in cars and trucks has a carbon-intensity equivalent to more than 1,000 gCO2e/kWh. (If you are interested in the details of this and other data points, see the geeky endnotes.)

The good news is that every province's electricity is now much cleaner than gasoline as a transportation fuel.

In fact, most Canadians have electricity that is at least 95 per cent less climate polluting than gasoline. Electrifying vehicles in these provinces virtually eliminates those transportation emissions.

Even in Alberta, which has the dirtiest electricity, it is 20 per cent cleaner than gasoline. That's a help, for sure. But it also means that Albertans must electrify many more vehicles to achieve the same emissions reductions as regions with cleaner electricity.

In addition to reducing climate pollution, switching transportation to electricity brings other big benefits:

It reduces air pollution in cities — a major health hazard.

It cuts the energy required for transportation by 75 per cent — because electric motors are so much more efficient.

It reduces fuel costs up to 80 per cent — saving tens of thousands of dollars.

And for gasoline-importing provinces, using local electricity keeps billions of fuel dollars inside their provincial economy.

As an extra bonus, it makes it hard for companies to manipulate the price or for outsiders to "turn off the taps.”

Cleaning up buildings

Canada's third biggest source of climate pollution is the buildings sector.

Burning natural gas for heating is the primary cause. So, reducing the amount of fossil gas burned in buildings is another top climate requirement.

Canadian provincial electricity carbon intensity in 2017, plus gasoline and nat gas heating equivalent

Heating with electricity is a common alternative. However, it's not always less climate polluting. It depends on how clean the electricity is.

To compare these two heating sources, look at the lower grey-striped zone I've added to the chart.

It shows that heating with natural gas has a carbon-intensity of 200 to 300 gCO2 per kWh of heat delivered. High-efficiency gas furnaces are at the lower end of this range.

As you can see, for most Canadians, electric heat is now the much cleaner choice — nearly eliminating emissions from buildings. But in Alberta and Saskatchewan, electricity is still too dirty to replace natural gas heat.

The climate benefits of electric heat can be improved further by using the newer high-efficiency air-source heat pump technologies like mini-splits. These can heat using one half to one third of the electricity of standard electric baseboard heaters. That means it is possible to use electricity that is a bit dirtier than natural gas and still deliver cleaner heating. As a bonus, heat pumps can free up a lot of existing electricity supply when used to replace existing electric baseboards.

Electrify everything

You’ve probably heard people say that to fight climate breakdown, we need to “electrify everything.” Of course, the electricity itself needs to be clean and what we’ve seen is that Canada is making important progress on that front. The electricity industry, and the politicians that prodded them, all deserve kudos for slashing emissions at more than twice the rate of any other sector.

We still need to finish the cleanup job, but we also need to turn our sights to the even bigger task ahead: requiring that everything fossil fuelled — every building, every factory, every vehicle — switches to clean Canadian power.

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Canadian Energy Infrastructure Tariffs are reshaping pipelines, deregulation, and energy independence, as U.S. trade tensions accelerate approvals for Alberta oil sands, Trans Mountain expansion, and CAPP proposals amid regulatory reform and market diversification.

Key Points

U.S. tariff threats drive approvals, infrastructure, and diversification to strengthen Canada energy security.

✅ Tariff risk boosts support for pipelines and export routes

✅ Faster project approvals and deregulation gain political backing

✅ Diversifying markets reduces reliance on U.S. buyers

In recent months, the Canadian energy sector has experienced a shift in public and political attitudes toward infrastructure projects, particularly those related to oil and gas production. This shift has been largely influenced by the threat of tariffs from the United States, as well as growing concerns about energy independence and U.S.-Canada trade tensions more broadly.

Scott Burrows, the CEO of Pembina Pipeline Corp., noted in a conference call that the potential for U.S. tariffs on Canadian energy imports has spurred a renewed sense of urgency and receptiveness toward energy infrastructure projects in Canada. With U.S. President Donald Trump’s proposed tariffs Trump tariff threat on Canadian imports, particularly a 10% tariff on energy products, there is increasing recognition within Canada that these projects are essential for the country’s long-term economic and energy security.

While the direct impact of the tariffs is not immediate, industry leaders are optimistic about the long-term benefits of deregulation and faster project approvals, even as some see Biden as better for Canada’s energy sector overall. Burrows highlighted that while it will take time for the full effects to materialize, there are significant "tailwinds" in favor of faster energy infrastructure development. This includes the possibility of more streamlined regulatory processes and a shift toward more efficient project timelines, which could significantly benefit the Canadian energy sector.

This changing landscape is particularly important for Alberta’s oil production, which is one of the largest contributors to Canada’s energy output. The Canadian Association of Petroleum Producers (CAPP) has responded to the growing tariff threat by releasing an “energy platform,” outlining recommendations for Ottawa to help mitigate the risks posed by the evolving trade situation. The platform includes calls for improved infrastructure, such as pipelines and transportation systems, and priorities like clean grids and batteries, to ensure that Canadian energy can reach global markets more effectively.

The tariff threat has also sparked a wider conversation about the need for Canada to strengthen its energy infrastructure and reduce its dependency on the U.S. for energy exports. With the potential for escalating trade tensions, there is a growing push for Canadian energy resources to be processed and utilized more domestically, though cutting Quebec’s energy exports during a tariff war. This has led to increased political support for projects like the Trans Mountain pipeline expansion, which aims to connect Alberta’s oil sands to new markets in Asia via the west coast.

However, the energy sector’s push for deregulation and quicker approvals has raised concerns among environmental groups and Indigenous communities. Critics argue that fast-tracking energy projects could lead to inadequate environmental assessments and greater risks to local ecosystems. These concerns underscore the tension between economic development and environmental protection in the energy sector.

Despite these concerns, there is a clear consensus that Canada’s energy industry needs to evolve to meet the challenges posed by shifting trade dynamics, even as polls show support for energy and mineral tariffs in the current dispute. The proposed U.S. tariffs have made it increasingly clear that the country’s energy infrastructure needs significant investment and modernization to ensure that Canada can maintain its status as a reliable and competitive energy supplier on the global stage.

As the deadline for the tariff decision approaches, and as Ford threatens to cut U.S. electricity exports, Canada’s energy sector is bracing for the potential fallout, while also preparing to capitalize on any opportunities that may arise from the changing trade environment. The next few months will be critical in determining how Canadian policymakers, businesses, and environmental groups navigate the complex intersection of energy, trade, and regulatory reform.

While the threat of U.S. tariffs may be unsettling, it is also serving as a catalyst for much-needed changes in Canada’s energy policy. The push for faster approvals and deregulation may help address some of the immediate concerns facing the sector, but it will be crucial for the government to balance economic interests with environmental and social considerations as the country moves forward in its energy transition.

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