U.S. Electric Vehicle Sales Soar Into 2024

Canada 2023 Clean Energy Outlook highlights decarbonization, renewables, a net-zero grid by 2035, hydrogen, energy storage, EV mandates, carbon pricing, and critical minerals, aligning with IRA incentives and provincial policies to accelerate the transition.

Key Points

A concise overview of Canada's 2023 path to net-zero: renewables, clean grids, storage, EVs, and hydrogen.

✅ Net-zero electricity regulations target 2035

✅ Alberta leads PPAs and renewables via deregulated markets

✅ Tax credits boost storage, hydrogen, EVs, and critical minerals

The year 2022 may go down as the most successful one yet for climate action. It was marked by monumental shifts in energy policy from governments, two COP meetings and heightened awareness of the private sector's duty to act.

In the U.S., the Inflation Reduction Act (IRA) was the largest federal legislation to tackle climate change, injecting $369 billion of tax credits and incentives for clean energy, Biden's EV agenda and carbon capture, energy storage, energy efficiency and research.

The European Union accelerated its green policies to transition away from fossil fuels and overhauled its carbon market. China and India made strides on clean energy and strengthened climate policies. The International Energy Agency made its largest revision yet as renewables continued to proliferate.

The U.S. ratified the Kigali Amendment, one of the strongest global climate policies to date.

Canada was no different. The 2022 Fall Economic Statement was announced to respond to the IRA, offering an investment tax credit for renewables, clean technology and green hydrogen alongside the Canada Growth Fund. The federal government also proposed a 2035 deadline for clean electrical grids and a federal zero-emissions vehicle (ZEV) sales mandate for light-duty vehicles.

With the momentum set, more action is promised in 2023: Canadian governments are expected to unveil firmer details for the decarbonization of electricity grids to meet 2035 deadlines; Alberta is poised to be an unlikely leader in clean energy.

Greater attention will be put on energy storage and critical minerals. Even an expected economic downturn is unlikely to stop the ball that is rolling.

Shane Doig, the head of energy and natural resources at KPMG in Canada, said events in 2022 demonstrated the complexity of the energy transformation and opened “a more balanced conversation around how Canada can transition to a lower carbon footprint, whilst balancing the need for affordable, readily available electricity.”

Expect further developments on clean electricity
2023 shapes up as a crucial year for Canada’s clean electricity grid.

The federal government announced it will pursue a net-zero electricity grid by 2035 under the Clean Electricity Regulations (CER) framework.

It requires mass renewable and clean energy adoption, phasing out fossil fuel electricity generation, rapid electrification and upgrading transmission and storage while accommodating growth in electricity demand.

The first regulations for consultation are expected early in 2023. The plans will lay out pollution regulations and costs for generating assets to accelerate clean energy adoption, according to Evan Pivnick, the clean energy program manager of Clean Energy Canada.

The Independent Energy System Operator of Ontario (IESO) recently published a three-part report suggesting a net-zero conversion for Ontario could cost $400 billion over 25 years, even as the province weighs an electricity market reshuffle to keep up with increasing electricity demand.

Power Utility released research by The Atmospheric Fund that suggests Ontario could reach a net-zero grid by 2035 across various scenarios, despite ongoing debates about Ontario's hydro plan and rate design.

Dale Beguin, executive vice president at the Canadian Climate Institute, said in 2023 he hopes to see more provincial regulators and governments send “strong signals to the utilities” that a pathway to net-zero is realistic.

He recounted increasing talk from investors in facilities such as automotive plants and steel mills who want clean electricity guarantees before making investments. “Clean energy is a comparative advantage,” he said, which puts the imperative on organizations like the IESO to lay out plans for bigger, cleaner and flexible grids.

Beguin and Pivnick said they are watching British Columbia closely because of a government mandate letter setting a climate-aligned energy framework and a new mandate for the British Columbia Utilities Commission. Pivnick said there may be lessons to be drawn for other jurisdictions.

Alberta’s unlikely rise as a clean energy leader
Though Alberta sits at the heart of Canada’s oil and gas industry and at the core of political resistance to climate policy, it has emerged as a front runner in renewables adoption.

Billion of dollars for wind and solar projects have flowed into Alberta, as the province charts a path to clean electricity with large-scale projects.

Pivnick said an “underappreciated story” is how Alberta leaned into renewables through its “unique market.” Alberta leads in renewables and power purchase agreements because of its deregulated electricity market.

Unlike most provinces, Alberta enables companies to go directly to solar and wind developers to strike deals, a model reinforced under Kenney's electricity policies in recent years, rather than through utilities. It incentivizes private investment, lowers costs and helps meet increasing demand, which Nagwan Al-Guneid, the director of the Business Renewables Centre - Canada at the Pembina Institute, said is “is the No. 1 reason we see this boom in renewables in Alberta.”

Beguin noted Alberta’s innovative ‘reverse auctions,’ where the province sets a competitive bidding process to provide electricity. It ended up making electricity “way cheaper” due to the economic competitiveness of renewables, while Alberta profited and added clean energy to its grid.

In 2019, the Business Renewables Centre-Canada established a target of 2 GW of renewable energy deals by 2025. The target was exceeded in 2022, which led to a revised goal for 10 GW of renewables by 2030.

Al-Guneid wants to see other jurisdictions help more companies buy renewables. She does not universally prescribe deregulation, however, as other mechanisms such as sleeving exist.

Alberta will update its industrial carbon pricing in 2023, requiring large emitters to pay $65 per tonne of carbon dioxide. The fee climbs $15 per tonne each year until it reaches $175 per tonne in 2030. Al-Guneid said as the tax increases, demand for renewable energy certificates will also increase in Alberta.

Pivnick noted Alberta will have an election in 2023, which could have ramifications for energy policy.

Batteries and EV leadership
Manufacturing clean energy equipment, batteries and storage requires enormous quantities of minerals. With the 2022 Fall Economic Statement and the Critical Minerals Strategy, Canada is taking important steps to lead on this front.

Pivnick pointed to battery supply chain investments in Ontario and Quebec as part of Canada’s shift from “a fuel-based (economy) to a materials-based economy” to provide materials necessary for wind turbines and solar panels. The Strategy showed an understanding Canada has a major role to meet its allies’ needs for critical minerals, whether it’s the resources or supply chains.

There is also an opportunity for Canada to forge ahead on energy storage. The Fall Economic Statement proposes a 30 per cent tax credit for investments into energy storage. Pivnick suggested Canada invest further into research and development to explore innovations like green hydrogen and pump storage.

Doig believes Canada is “well poised” for batteries, both in terms of the technology and sustainable mining of minerals like cobalt, lithium and copper. He is bullish for Canada’s electrification based on its clean energy use and increased spending on renewables and energy storage.

He said the federal ZEV mandate will drive increased demand for the power, utilities, and oil and gas industries to respond.

The majority of gas stations, which are owned by the nation’s energy industry, will need to be converted into EV charging stations.

Offsetting a recession 
One challenge will be a poor economic forecast in the near term. A short "technical recession" is expected in 2023.

Inflation remains stubbornly high, which has forced the Bank of Canada to hike interest rates. The conditions will not leave any industry unscathed, but Doig said Canada's decarbonization is unlikely to be halted.

“Whilst a recession would slow things down, the concern around energy security definitely helps offset that concern,” he said.

Amid rising trade frictions and tariff threats, energy security is top of mind for governments and private organizations, accelerating the shift to renewables.

Doig said there is a general feeling a recession would be short-lived, meaning it would be unlikely to impact long-term projects in hydrogen, liquified natural gas, carbon capture and wind and solar.

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General Motors EV Hiring expands software development, engineering, and IT roles for electric vehicles, Ultium batteries, and autonomous tech, offering remote jobs, boosting diversity and inclusion, and accelerating zero-emission mobility and customer experience initiatives.

Key Points

GM plan to hire 3,000 software, engineering, and IT staff to speed EV programs, remote work, and customer experience.

✅ 3,000 hires in software, engineering, IT

✅ Focus on EVs, Ultium batteries, autonomous tech

✅ Remote roles, diversity, inclusion priorities

General electrical safety involves practices and procedures designed to prevent electric shock, arc flash, and other hazards associated with electrical systems. Whether at home, in the workplace, or industrial environments, following established safety guidelines helps protect people, property, and equipment from electrical accidents. General Motors plans to hire 3,000 new employees largely focused on software development as the company accelerates its plans for electric vehicles, the automaker announced Monday.

GM said the jobs will be focused on engineering, design and information technology “to increase diversity and inclusion and contribute to GM’s EV and customer experience priorities.” The hiring is expected through the first quarter of 2021, as the company addresses EV adoption challenges in key markets. Many of the positions will be remote as GM begins to offer “more remote opportunities than ever before,” the company said.

“As we evolve and grow our software expertise and services, it’s important that we continue to recruit and add diverse talent,” GM President Mark Reuss said in a release. “This will clearly show that we’re committed to further developing the software we need to lead in EVs, enhance the customer experience and become a software expertise-driven workforce.”

General Motors CEO on third-quarter earnings, rise in demand for trucks and more
The hiring blitz comes as the automaker expects to increase focus on electric vehicles, including offering at least 20 new electric vehicles globally by 2023, while competitors like Ford accelerate EV investment as well. GM earlier this year said it planned to invest $20 billion in electric and autonomous vehicles by 2025, including a tentative Ontario EV plant commitment.

Ken Morris, GM vice president of autonomous and electric vehicles programs, told reporters on a call Monday that the automaker has pulled forward at least two upcoming electric vehicles following the GMC Hummer EV, which is the first vehicle on GM’s next-generation electric vehicle platform with its proprietary Ultium battery cells.

“We’re moving as fast as we can in terms of developing vehicles virtually, more so than we ever have by far,” Morris said. “We are doing things virtually, more effective than we ever have.”

Shares of the automaker reached a new 52-week high of $39.72 ahead of the Monday announcement. The stock was up 5% during midday trading Monday following market optimism about a Covid-19 vaccine and President-elect Joe Biden outlining priorities that would support electric vehicles nationwide.

The race between Tesla, GM, Rivian and others to dominate electric pickup trucks
“We’re looking forward to working with the Biden administration and support policies that will foster greater adoption of EVs across all 50 states and encourage investments in R&D and manufacturing,” Morris said. “At the end of the day, climate change is a global concern and the best way to remove automobile emissions from the environmental equation is all-electric, zero-emissions future.”

At the same time, gas-electric hybrids continue to gain momentum in the U.S., shaping consumer transition paths.

The additional jobs are separate from a previous announcement by GM to hire 1,100 new employees as part of a $2.3 billion joint venture with LG Chem to produce Ultium cells in northeast Ohio.

GM employed about 164,000 people globally in 2019, down from 215,000 in 2015 as the company has restructured and cut operations in recent years.

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IEA Electricity Market Outlook 2023-2025 projects faster demand growth as renewables and nuclear dominate supply, stabilizing power-sector carbon emissions, with Asia leading expansion despite energy crisis shocks and weather-driven volatility.

Key Points

IEA forecast for 2023-2025 electricity demand: renewables and nuclear meet growth as power-sector emissions hold steady.

✅ Asia drives >70% of demand growth

✅ Renewables and nuclear meet most new supply

✅ CO2 intensity declines; grid flexibility vital

The world’s electricity demand growth slowed only slightly in 2022, despite headwinds from the energy crisis, and is expected to accelerate in the years ahead

Renewables are set to dominate the growth of the world’s electricity supply over the next three years as, renewables eclipse coal in global generation, together with nuclear power they meet the vast majority of the increase in global demand through to 2025, making significant rises in the power sector’s carbon emissions unlikely, according to a new IEA report.

After slowing slightly last year to 2% amid the turmoil of the global energy crisis and exceptional weather conditions in some regions, the growth in world electricity demand is expected to accelerate to an average of 3% over the next three years, the IEA’s Electricity Market Report 2023 finds. Emerging and developing economies in Asia are the driving forces behind this faster pace, which is a step up from average growth of 2.4% during the years before the pandemic and above pre-pandemic levels globally.

More than 70% of the increase in global electricity demand over the next three years is expected to come from China, India and Southeast Asia, as Asia’s power use nears half of the world by mid-decade, although considerable uncertainties remain over trends in China as its economy emerges from strict Covid restrictions. China’s share of global electricity consumption is currently forecast to rise to a new record of one-third by 2025, up from one-quarter in 2015. At the same time, advanced economies are seeking to expand electricity use to displace fossil fuels in sectors such as transport, heating and industry.

“The world’s growing demand for electricity is set to accelerate, adding more than double Japan’s current electricity consumption over the next three years,” said IEA Executive Director Fatih Birol. “The good news is that renewables and nuclear power are growing quickly enough to meet almost all this additional appetite, suggesting we are close to a tipping point for power sector emissions. Governments now need to enable low-emissions sources to grow even faster and drive down emissions so that the world can ensure secure electricity supplies while reaching climate goals.”

While natural gas-fired power generation in the European Union is forecast to fall in the coming years, as wind and solar outpaced gas in 2022, based on current trends, significant growth in the Middle East is set to partly offset this decrease. Sharp spikes in natural gas prices amid the energy crisis have in turn fuelled soaring electricity prices in some markets, particularly in Europe, prompting debate in policy circles over reforms to power market design.

Meanwhile, expected declines in coal-fired generation in Europe and the Americas are likely to be matched by a rise in the Asia-Pacific region, despite increases in nuclear power deployment and restarts of plants in some countries such as Japan. This means that after reaching an all-time high in 2022, carbon dioxide (CO2) emissions from global power generation are set to remain around the same level through 2025.

The strong growth of renewables means their share of the global power generation mix is forecast to rise from 29% in 2022 to 35% in 2025, with the shares of coal- and gas-fired generation falling. As a result, the CO2 intensity of global power generation will continue to decrease in the coming years. Europe bucked this global trend last year, however. The CO2 intensity of Europe’s power generation increased as a result of higher use of coal and gas amid steep drops in output from both hydropower, due to drought, and nuclear power, due to plant closures and maintenance. This setback will be temporary, though, as Europe’s power generation emissions are expected to decrease on average by about 10% a year through 2025.

Electricity demand trends varied widely by region in 2022. India’s electricity consumption rose strongly, while China’s growth was more subdued due to its zero-Covid policy weighing heavily on economic activity. The United States recorded a robust increase in demand, driven by economic activity and higher residential use amid hotter summer weather and a colder-than-normal winter, even as electricity sales projections continue to decline according to some outlooks.

Demand in the European Union contracted due to unusually mild winter weather and a decline in electricity consumption in the industrial sector, which significantly scaled back production because of high energy prices and supply disruptions caused by Russia’s invasion of Ukraine. The 3.5% decrease in EU demand was its second largest percentage decline since the global financial crisis in 2009, with the largest being the exceptional contraction due to the COVID-19 shock in 2020.

The new IEA report notes that electricity demand and supply worldwide are becoming increasingly weather dependent, with extreme conditions a recurring theme in 2022. In addition to the drought in Europe, there were heatwaves in India, resulting in the country’s highest ever peak in power demand. Similarly, central and eastern regions of China were hit by heatwaves and drought, which caused demand for air conditioning to surge amid reduced hydropower generation in Sichuan province. The United States also saw severe winter storms in December, triggering massive power outages.

These highlight the need for faster decarbonisation and accelerated deployment of clean energy technologies, the report says. At the same time, as the clean energy transition gathers pace, the impact of weather events on electricity demand will intensify due to the increased electrification of heating, while the share of weather-dependent renewables will continue to grow in the generation mix. In such a world, increasing the flexibility of power systems, which are under growing strain across grids and markets, while ensuring security of supply and resilience of networks will be crucial.

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Grid-eMotion Fleet Smart Charging enables BVG Berlin to electrify bus depots with compact grid-to-plug DC infrastructure, smart charging software, and high reliability, accelerating zero-emission electric buses, lower noise, and space-efficient e-mobility.

Key Points

Grid-to-plug DC charging for bus depots, with smart software to reliably power zero-emission electric bus fleets.

✅ Up to 60% less space and 40% less cabling than alternatives

✅ DC charging with smart scheduling for depot operations

✅ Scalable, grid-code compliant, low-noise, high reliability

Grid-eMotion Fleet smart charging solution to help the City of Berlin reach its goal of a zero-emission bus fleet by 2030

Dubai, UAE: Hitachi Energy has won an order from Berliner Verkehrsbe-triebe (BVG), Germany’s biggest municipal public transportation company, to supply its Grid-eMotionTM Fleet smart charging infrastructure to help BVG transition to sustainable mobility in Berlin, the country’s capital, where an electric flying ferry initiative underscores the city’s e-mobility momentum.

Hitachi Energy will provide a complete Grid-eMotion Fleet grid-to-plug charging infrastructure solution for the next two bus depots to be converted in the bus electrification program. Hitachi Energy’s solution offers the smallest footprint for both the connection, as well as low noise emissions and high reliability that support grid stability across operations – three key requirements for bus depots in a densely populated urban environment, where space is limited and flawless charging is vital to ensure buses run on time.

The solution comprises a connection to the distribution grid, where effective grid coordination streamlines integration, power distribution and DC charging infrastructure with charging points and smart charging systems. Hitachi Energy will perform the engineering and integrate, install and service the entire solution. The solution has a compact and robust design that requires less equipment than competing infrastructure, which results in a small footprint, lower operating and maintenance costs, and higher reliability. Typically, Grid-eMotion Fleet requires 60 percent less space and 40 percent less cabling than alternative charging systems; it also provides superior overall system reliability.

“We are delighted to help the City of Berlin in its transition to quiet and emission-free transportation and a sustainable energy future for the people of this iconic capital,” said Niklas Persson, Managing Director of Hitachi Energy’s Grid Integration business. “We feel the urgency and have the pioneering technology and commitment to advance sustainable mobility, thus improving the quality of life of millions of people.”

BVG operates Germany’s biggest city bus fleet of around 1,500 vehicles, which it aims to make completely electric and emission-free by 2030, and could benefit from vehicle-to-grid pilots to enhance flexibility. This requires the installation of charging infra-structure in its large network of bus depots.

About Grid-eMotion:

Grid-eMotion comprises two unique, innovative solutions – Fleet and Flash. Grid-eMotion Fleet is a grid-code compliant and space-saving grid-to-plug charging solution that can be in-stalled in new and existing bus depots. The charging solution can be scaled flexibly as the fleet gets bigger and greener. It includes a robust and compact grid connection and charging points, and is also available for commercial vehicle fleets, including last-mile delivery and heavy-duty trucks, as electric truck fleets scale up, requiring high power charging of several megawatts. Grid-eMotionTM Flash enables operators to flash-charge buses within seconds at passenger stops and fully recharge within minutes at the route terminus, without interrupting the bus schedule.

Both solutions are equipped with configurable smart charging digital platforms that can be em-bedded with larger fleet and energy management systems, enabling vehicle-to-grid capabilities for bidirectional charging. Additional offerings from Hitachi Energy for EV charging systems consist of e-meshTM energy management and optimization solutions and Lumada APM, EAM and FSM solutions, to help transportation operators make informed decisions that maximize their uptime and improve efficiency.

In the past few months alone, Hitachi Energy has won orders from customers and partners all over the world for its smart charging portfolio – a sign that Grid-eMotion is changing the e-mobility landscape for electric buses and commercial vehicles, as advances in energy storage and mobile charging bolster resilience. Grid-eMotion solutions are al-ready operating or under development in Australia, Canada, China, India, the Middle East, the United States and several countries in Europe.

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BC Strata EV Charging Reforms streamline approvals under the Strata Property Act, lowering the voting threshold and requiring an electrical planning report to expand EV charging stations in multi-unit strata buildings across British Columbia.

Key Points

BC reforms ease EV charger installs in stratas by lowering votes, requiring plans, and fast-tracking compliant requests.

✅ Vote threshold drops to 50% for EV infrastructure

✅ Electrical planning report required for stratas

✅ Stratas must approve compliant owner charging requests

Owning an electric vehicle (EV) will be a little easier for strata property owners, the province says, after announcing changes to legislation to facilitate the installation of charging stations in strata buildings.

On Thursday, the province said it would be making amendments to the Strata Property Act, the legal framework all strata corporations are required to follow, and align with practical steps for retrofitting condos with chargers in older buildings.

Three areas will improve access to EV charging stations in strata complexes, the province says, including lowering the voting threshold from 75 per cent to 50 per cent for approval of the costs, supported by EV charger rebates that can offset expenses, and changes to the property that are needed to install them, as well as requiring strata corporations to have an electrical planning report to make installation of these stations easier.

The amendments would mean stratas would have to approve owners' requests for such charging stations, even amid high-rise EV charging challenges reported across Canada, as long as "reasonable criteria are met."

Minister of Energy, Mines and Low Carbon Innovation Josie Osborne said people are more likely to buy an electric vehicle if they have the ability to charge it — something that's lacking for many British Columbians living in multi-unit residences, where Vancouver's EV-ready policy is setting a local example for multi-family buildings. 

"B.C. has one of the largest public electric vehicle charging networks in Canada, and leads the country in going electric, but we need to make it easier for more people to charge their EVs at home," Osborne said in a statement.

Tony Gioventu, the executive director of the Condominium Home Owners Association of B.C., said the new legislation strikes a balance between allowing people access to EV charging stations, as examples from Calgary apartments and condos demonstrate, while also ensuring stratas still have control over their properties. 

This is just the latest step in the B.C. government's move to get more EVs on the road: alongside rebates for home and workplace charging, the province passed the Zero-Emission Vehicles Act, which aims for 10 per cent of all new light-duty cars and trucks sold in B.C. to be zero emission by 2025. By 2040, they'll all need to be emission-free.

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Manitoba ZEV Roadblocks highlight EV charging station gaps, rural infrastructure limits, dealership supply shortages, and ZEV mandate timelines, pushing mode shift to transit, cycling, and walking while hampering zero-emission vehicle adoption across the province.

Key Points

EV charging gaps, rural access limits, and supply constraints slow Manitoba's progress toward ZEV targets.

✅ Sparse Level 3 fast chargers outside Winnipeg

✅ Rural infrastructure limits long-distance confidence

✅ Dealership supply lags; long pre-order wait times

The federal government’s push toward zero-emission vehicles (ZEVs), including forthcoming EV sales regulations, is hitting some roadblocks in Manitoba.

Earlier this year, Ottawa set a sales target to encourage Canadians to choose ZEVs. By 2026, their goal is to have ZEVs make up 20 per cent of new vehicle purchases. By 2035, they want all new vehicles sold to be ZEVs, a target that has sparked 2035 EV mandate debate among industry observers.

READ MORE: Ottawa sets 2026 target for mandating electric vehicle sales

Connie Blixhavn with the Manitoba Electric Vehicle Association (MEVA) doesn’t think Manitoba is on track.

“We’re not, not at all,” she said.

Blixhavn lives in Killarney, Man., and bought an electric vehicle last year. She plans her trips to Brandon and Winkler around the life of her car’s battery, but finds the charging infrastructure to be lacking and unreliable, a challenge echoed by Labrador's lagging infrastructure in Newfoundland and Labrador.

“Brandon is my closest place to get a level three charge, and when they’re not working, it limits where you can go,” she said.

Level three is the fastest type of EV charger, taking about 15-45 minutes to fully charge a vehicle’s batteries.

According to CAA, 68 of the province’s 94 EV charging stations are in Winnipeg. Blixhavn says it limits options for rural people to confidently adopt EVs, even as jurisdictions like the N.W.T. encourage EV adoption through targeted programs.

“I know we’re a big area, but they need to strategically plan where they put these so we all have access,” she said.

ZEVs are often not found on dealership lots – they have to be pre-ordered. One dealership employee told Global News demand far outweighs supply, amid EV shortages and wait times reported nationally, with some customers waiting one to two years for their new vehicle to arrive.

Mel Marginet with the Green Action Centre’s Sustainable Transporation Team is also wary of Manitoba’s ability to meet the 2026 goal, noting that even as experts question Quebec's EV push there are broader challenges. She believes the only way to come close is to change how much Manitobans use personal vehicles altogether.

“If we’re really concerned about the environment, we need to double and triple down on just reducing personal vehicle trips by and large,” she said.

Marginet points to transit, walking and cycling as ways to reduce reliance on driving.

“We depend on personal vehicles a lot in this province, and far more than we should have to,” she said. “My biggest worry is that we’ll take resources away from what we need to build to get people to use personal vehicles less.”

For Blixhavn, the lack of charging stations in her area has caused her to reduce her vehicle use. While she says she’s fine with the extra planning it takes to travel, she believes the lack of infrastructure is preventing Manitobans, especially those in rural areas, from catching up with other provinces, as Atlantic Canada EV interest lags the rest of the country, when it comes to choosing electric vehicles.

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