Renewables Poised to Eclipse Coal in Global Power Generation by 2025


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IEA Electricity 2024 Renewables Outlook projects renewable energy surpassing coal in global electricity generation by early 2025, with nuclear power rebounding, clean energy expansion, electrification, and grid upgrades cutting emissions and decarbonizing power systems.

 

Key Points

IEA forecast: renewables beat coal by 2025, nuclear rebounds, speeding cleaner power and deeper emissions cuts by 2026.

✅ Renewables surpass coal by 2025; nuclear output hits records by 2025-2026.

✅ Power demand grows 3.4% avg to 2026 via EVs, data centers, electrification.

✅ Gas displaces coal; grids need investment; drought and supply chains pose risks.

 

The International Energy Agency's latest Electricity 2024 report predicts that renewable energy sources will surpass coal in global electricity generation by early 2025, reaching over one-third of the world's total power output. Additionally, nuclear power is expected to achieve record production levels by 2025, recovering from recent downturns and reflecting low-carbon electricity lessons from the COVID-19 period.

By 2026, the report estimates that renewables and nuclear will jointly contribute to nearly half of the global power generation, up from less than 40 percent in 2023. This shift is crucial as the United Nations emphasizes the transition to clean energy, with Asia to use half of electricity by 2025 highlighting the scale of the challenge, as a key factor in limiting global warming to 1.5 degrees Celsius above preindustrial levels.

IEA Executive Director Fatih Birol highlighted the promising trends of renewables, led by affordable solar power and the resurgence of nuclear power, as key factors covering almost all demand growth over the next three years.

At the COP28 climate summit in Dubai, participants agreed on a plan for phasing out fossil fuels and committed to tripling renewable capacity by 2030. This shift in the electricity mix is expected to reduce emissions from the power sector, which is currently the largest source of carbon dioxide emissions worldwide.

Despite a modest 2.2 percent growth in global electricity demand in 2023, an acceleration to an average annual increase of 3.4 percent is projected from 2024 to 2026. This surge in electricity demand is driven by factors like home and business electrification, the proliferation of electric vehicles, and industrial expansion.

Significant growth in electricity usage from data centers worldwide is anticipated, potentially doubling between 2022 and 2026, as global power demand has surged above pre-pandemic levels. Regulatory updates and technological advancements are essential to manage this energy consumption increase effectively.

Emissions from the electricity sector are expected to decrease following a 1 percent rise in 2023, with a more than 2 percent reduction projected in 2024 and continued declines in subsequent years. This reduced carbon intensity in electricity generation will enhance the emissions savings from electrifying cars and appliances.

Natural gas-fired power is predicted to see a modest increase over the next three years, primarily replacing coal power. While Europe has witnessed sharp declines in gas power, EU wind and solar beat gas last year, growth in the United States, Asia, Africa, and the Middle East is expected due to available liquefied natural gas supplies.

By 2026, fossil fuels are forecasted to account for 54 percent of global generation, dropping below 60 percent for the first time in over five decades. The U.S. is anticipated to boost renewable generation by approximately 10 percent annually between 2024 and 2026, surpassing coal generation in 2024.

The report warns of potential risks to clean energy trends, including droughts impacting hydropower, extreme weather affecting electricity reliability, and supply chain interruptions threatening new renewable and nuclear projects, and a generation mix sensitive to policies and gas prices that could shift trajectories.

Keisuke Sadamori, IEA’s director of energy markets and security, underscores the need for continued investment in grid infrastructure to integrate incoming renewable energy and sustain the power sector's trajectory towards emissions reduction goals.

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Requests for Proposal launched for purchase of clean electricity in Alberta

Canada Clean Electricity Procurement advances federal operations with renewable energy in Alberta, leveraging RECs, competitive sourcing, Indigenous participation, and grid decarbonization to cut greenhouse gas emissions and stimulate new clean power infrastructure.

 

Key Points

A plan to procure clean power and RECs, cutting emissions in Alberta and attributing use where renewables are absent.

✅ RFPs to source new clean electricity in Alberta

✅ RECs from net new Canadian renewable generation

✅ Mandatory Indigenous participation via equity or set-asides

 

Public Services and Procurement Canada (PSPC) is taking concrete steps to meet the Government of Canada's commitment in the Greening Government Strategy to reduce greenhouse gas emissions from federal government buildings, vehicle fleets and other operations, aligning with broader vehicle electrification trends across Canada.

The Honourable Anita Anand, Minister of Public Services and Procurement, announced the Government of Canada has launched Requests for Proposal to buy new clean electricity in the province of Alberta, which is moving ahead with the retirement of coal power to clean its grid, to power federal operations there.

As well, Canada will purchase Renewable Energy Certificates (REC) from new clean energy generation in Canada. This will enable Canada to attribute its energy consumption as clean in regions where new clean renewable sources are not yet available. The Government of Canada is excited about this opportunity to stimulate net new Canadian clean electricity generation through the procurement of RECs and complementary power purchase agreements that secure long-term supply for federal demand.

Together, these contracts will help to ensure Canada is reducing its greenhouse gas footprint by approximately 133 kilotonnes or 56% of total real property emissions in Alberta. Additionally, the contracts will displace approximately 41 kilotonnes of greenhouse gas emissions from electricity use in the rest of Canada, supporting progress toward 2035 clean electricity goals even as challenges remain.

Through these open, fair and transparent competitive procurement processes, PSPC will be a key purchaser of clean electricity and will support the growth of new clean electricity and renewable power infrastructure, such as recent turbine investments in Manitoba that expand capacity.

The Government of Canada's Clean Electricity Initiative plans to use 100% clean electricity by 2022, where available, in alignment with evolving net-zero electricity regulations that shape supply choices, to reduce greenhouse gas emissions and stimulate growth in clean renewable power infrastructure. PSPC has applied the goals of the Government of Canada's Clean Electricity Initiative to its specific requirement for net new clean electricity generation to power federal operations in Alberta.  

These procurements will support economic opportunities for Indigenous businesses by encouraging participation in the move towards clean energy, seen in provincial shifts toward clean power in Ontario that broaden markets. Each Request for Proposal incorporates mandatory requirements for Indigenous participation through equity holdings or set-asides under the Procurement Strategy for Aboriginal Business.

 

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Hydro One Networks Inc. - Ivy, ONroute and Canadian Tire make it easy to charge your next road trip

ONroute EV Charging Stations now live on Ontario's Highways 401 and 400, powered by Ivy Charging Network with 150 kW fast chargers, Tesla-compatible ports, Canadian Tire support, and government-backed clean transportation infrastructure.

 

Key Points

ONroute EV Charging Stations are Ivy-managed 150 kW fast-charging hubs along Highways 401/400, compatible with all EVs.

✅ Up to 150 kW DC fast charging; ~100 km added in about 10 minutes

✅ Compatible with all EV models, including Tesla-compatible ports

✅ Located along Highways 401/400; 2-4 chargers per ONroute site

 

Electric vehicle (EV) drivers can now charge at 10 ONroute locations along Highways 401 and 400, reflecting progress on the province's charging network rollout to date.

Ivy Charging Network, ONroute and their partners, Canadian Tire Corporation (CTC) and the Ministry of Transportation (MTO) announced the opening of four Charge & Go EV fast-charging stations today: Ingleside, Innisfil, Tilbury North, Woodstock

Each of Ivy's Charge & Go level 3 fast-chargers at ONroute locations will support the charging of all EV models, including charging ports for Tesla drivers.

 

Quick Facts

Ivy Charging Network is installing 69 level 3 fast-chargers across all ONroute locations, with the possibility of further expansion as Ontario makes it easier to build charging stations through supportive measures.

Ivy's ONroute Charge & Go locations will offer charging speeds of up-to 150 kWs, delivering up to a 100 km charge in 10 minutes.

This partnership is part of CTC's ongoing expansion of EV charging infrastructure across Canada, as utilities like BC Hydro add more stations across southern B.C.

Ivy Charging Network is a joint venture between Hydro One and Ontario Power Generation.

Natural Resources Canada, through its Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative, invested $8-million to help build the broader Ivy Charging Network, alongside other federal funding for smart chargers supporting deployments, providing access to 160 level 3 fast-chargers across Ontario including these ONroute locations.

'Our partnership with ONroute, Canadian Tire and the Ontario Ministry of Transportation will end range anxiety for EV drivers travelling on the province's major highways. These new fast-charging locations will give drivers the confidence they need on their road trips, to get them where they need to go this summer,' said Michael Kitchen, General Manager, Ivy Charging Network.

'ONroute is proud to now offer EV charging stations to our customers, in partnership with Ivy and Canadian Tire. We are focused on supporting the growth of electric cars and offering this convenience for our customers as we strive to be the recharge destination for all travelers across Ontario,' said Melanie Teed-Murch, Chief Executive Officer of ONroute.

'Together with our partners, CTC is proud to announce the opening of EV fast-charging stations at four additional ONroute locations along the 400-series highways. Our network of EV charging stations is just one of the ways CTC is supporting EV drivers of today and tomorrow to make life in Canada better, with growth similar to NB Power's public charging network underway,' said Micheline Davies, SVP, Automotive, Canadian Tire Corporation. 'We will have approximately 140 sites across the country by the end of the year, making CTC one of the largest retail networks of EV fast charging stations in Canada.'

'We're giving Canadians cleaner transportation options to get to where they need to go by making zero-emission charging and alternative-fuels refueling infrastructure more accessible, as seen with new fast-charging stations in N.B. announced recently. Investments like the ones announced today in Ontario will put Canadians in the driver's seat on the road to a net-zero future and help achieve our climate goals,' said the Honourable Jonathan Wilkinson, Minister of Natural Resources.

'Ontario is putting shovels in the ground to build critical infrastructure that will boost EV ownership, support Ontario's growing EV manufacturing industry and reduce emissions, complementing progress such as the first fast-charging network in N.L. now in place,' said Todd Smith, Minister of Energy. 'With EV fast chargers now available at ten ONroute stations along our province's business highways it's even more convenient than ever for workers and families to grab a coffee or a meal while charging their car.'

 

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Is residential solar worth it?

Home Solar Cost vs Utility Bills compares electricity rates, ROI, incentives, and battery storage, explaining payback, financing, and grid fees while highlighting long-term savings, rate volatility, and backup power resilience for homeowners.

 

Key Points

Compares home solar pricing and financing to utility rates, outlining savings, incentives, ROI, and backup power value.

✅ Average retail rates rose 59% in 20 years; volatility persists

✅ Typical 7.15 kW system costs $18,950 before incentives

✅ Federal ITC and state rebates improve ROI and payback

 

When shopping for a home solar system, sometimes the quoted price can leave you wondering why someone would move forward with something that seems so expensive. 

When compared with the status quo, electricity delivered from the utility, the price may not seem so high after all. First, pv magazine will examine the status quo, and how much you can expect to pay for power if you don’t get solar panels. Then, we will examine the average cost of solar arrays today and introduce incentives that boost home solar value.

The cost of doing nothing

Generally, early adopters have financially benefited from going solar by securing price certainty and stemming the impact of steadily increasing utility-bill costs, particularly for energy-insecure households who pay more for electricity.

End-use residential electric customers pay an average of $0.138/kWh in the United States, according to the Energy Information Administration (EIA). In California, that rate is $0.256/kWh, it averages $0.246/kWh across New England, $0.126/kWh in the South Atlantic region, and $0.124/kWh in the Mountain West region.

EIA reports that the average home uses 893 kWh per month, so based on the average retail rate of $0.138/kWh, that’s an electric bill of about $123 monthly, or $229 monthly in California.

Over the last 20 years, EIA data show that retail electricity prices have increased 59% across the United States, with evidence indicating that renewables are not making electricity more expensive, suggesting other factors have driven costs higher, or 2.95% each year.

This means based on historical rates, the average US homeowner can expect to pay $39,460 over the next 20 years on electricity bills. On average, Californians could pay $73,465 over 20 years.

Recent global events show just how unstable prices can be for commodities, and energy is no exception here, with solar panel sales doubling in the UK as homeowners look to cut soaring bills. What will your utility bill cost in 20 years?

These estimated bills also assume that energy use in the home is constant over 20 years, but as the United States electrifies its homes, adds more devices, and adopts electric vehicles, it is fair to expect that many homeowners will use more electricity going forward.

Another factor that may exacerbate rate raising is the upgrade of the national transmission grid. The infrastructure that delivers power to our homes is aging and in need of critical upgrades, and it is estimated that a staggering $500 billion will be spent on transmission buildout by 2035. This half-trillion-dollar cost gets passed down to homeowners in the form of raised utility bill rates.

The benefit of backup power may increase as time goes on as well. Power outages are on the rise across the United States, and recent assessments of the risk of power outages underscore that outages related to severe weather events have doubled in the last 20 years. Climate change-fueled storms are expected to continue to rise, so the role of battery backup in providing reliable energy may increase significantly.

The truth is, we don’t know how much power will cost in 20 years. Though it has increased 59% across the nation in the last 20 years, there is no way to be certain what it will cost going forward. That is where solar has a benefit over the status quo. By purchasing solar, you are securing price certainty going forward, making it easier to budget and plan for the future.

So how do these costs compare to going solar?

Cost of solar

As a general trend, prices for solar have fallen. In 2010, it cost about $40,000 to install a residential solar system, and since then, prices have fallen by as much as 70%, and about 37% in the last five years. However, prices have increased slightly in 2022 due to shipping costs, materials costs, and possible tariffs being placed on imported solar goods, and these pressures aren’t expected to be alleviated in the near-term.

When comparing quotes, the best metric for an apples-to-apples comparison is the cost per watt. Price benchmarking by the National Renewable Energy Laboratory shows the average cost per watt for the nation was $2.65/W DC in 2021, and the average system size was 7.15 kW. So, an average system would cost about $18,950. With 12.5 kWh of battery energy storage, the average cost was $4.26/W, representing an average price tag of $30,460 with batteries included.

The prices above do not include any incentives. Currently, the federal government applies a 26% investment tax credit to the system, bringing down system costs for those who qualify to $14,023 without batteries, and $22,540 with batteries. Compared to the potential $39,460 in utility bills, buying a solar system outright in cash appears to show a clear financial benefit.

Many homeowners will need financing to buy a solar system. Shorter terms can achieve rates as low as 2.99% or less, but financing for a 20-year solar loan typically lands between 5% to 8% or more. Based on 20-year, 7% annual percentage rate terms, a $14,000 system would total about $26,000 in loan payments over 20 years, and the system with batteries included would total about $42,000 in loan payments.

Often when you adopt solar, the utility will still charge you a grid access fee even if your system produces 100% of your needs. These vary from utility to utility but are often around $10 a month. Over 20 years, that equates to about $2,400 that you’ll still need to pay to the utility, plus any costs for energy you use beyond what your system provides.

Based on these average figures, a homeowner could expect to see as much as $12,000 in savings with a 20-year financed system. Homeowners in regions whose retail energy price exceeds the national average could see savings in multiples of that figure.

Though in this example batteries appear to be marginally more expensive than the status quo over a 20-year term, they improve the home by adding the crucial service of backup power, and as battery costs continue to fall they are increasingly being approved to participate in grid services, potentially unlocking additional revenue streams for homeowners.

Another thing to note is most solar systems are warranted for 25 years rather than the 20 used in the status quo example. A panel can last a good 35 years, and though it will begin to produce less in old age, any power produced by a panel you own is money back in your pocket.

Incentives and home value

Many states have additional incentives to boost the value of solar, too, and federal proposals to increase solar generation tenfold could remake the U.S. electricity system. Checking the Database of State Incentives for Renewables (DSIRE) will show the incentives available in your state, and a solar representative should be able to walk you through these benefits when you receive a quote. State incentives change frequently and vary widely, and in some cases are quite rich, offering thousands of dollars in additional benefits.

Another factor to consider is home value. A study by Zillow found that solar arrays increase a home value by 4.1% on average. For a $375,000 home, that’s an increase of $15,375 in value. In most states home solar is exempt from property taxes, making it a great way to boost value without paying taxes for it.

Bottom line

We’ve shared a lot of data on national averages and the potential cost of power going forward, but is solar for you? In the past, early adopters have been rewarded for going solar, and celebrate when they see $0 electric bills paid to the utility company.

Each home is different, each utility is different, and each homeowner has different needs, so evaluating whether solar is right for your home will take a little time and analysis. Representatives from solar companies will walk you through this analysis, and it’s generally a good rule of thumb to get at least three quotes for comparison.

A great resource for starting your research is the Solar Calculator developed by informational site SolarReviews. The calculator offers a quote and savings estimate based on local rates and incentives available to your area. The website also features reviews of installers, equipment, and more.

Some people will save tens of thousands of dollars in the long run with solar, while others may witness more modest savings. Solar will also provide the home clean, local energy, and U.S. solar generation is projected to reach 20% by 2050 as capacity expands, making an impact both on mitigating climate change and in supporting local jobs.

One indisputable benefit of solar is that it will offer greater clarity into what your electricity bills will cost over the next couple of decades, rather than leaving you exposed to whatever rates the utility company decides to charge in the future.

 

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US Electric Vehicle Momentum Slows as Globe Surges

US electric vehicle momentum is slowing as tax credits expire, tariffs increase costs, and interest rates rise, while Europe and China accelerate EV adoption through stronger incentives, enhanced charging infrastructure, and growth in battery manufacturing.

 

Why has US Electric Vehicle Momentum Slowed as Globe Surges?

US electric vehicle momentum has slowed due to expiring subsidies, rising costs, and global competition from faster-moving markets.

✅ End of federal tax credits weakened buyer demand

✅ Tariffs and high interest rates raised EV prices

✅ Europe and China expanded incentives and infrastructure

 

You could be forgiven for thinking that electric cars might finally be gaining momentum in the United States. Last year, battery-powered vehicle sales topped 1.2 million—more than five times the number sold just four years earlier, amid an early-2024 EV surge in deliveries. Hybrid sales tripled over the same period, and in August, battery cars accounted for 10 percent of all new vehicle sales, a record high according to S&P Global Mobility.

Major automakers, including General Motors, Ford, and Tesla, reported record electric-vehicle deliveries this quarter, a rare bright spot in an industry still contending with high interest rates, inflation, and tariffs, and a sign the age of electric cars is arriving.

Yet analysts warn the apparent boom may be short-lived, noting a market share dip in early 2024 that could foreshadow slower growth. Much of the recent surge was driven by buyers rushing to take advantage of a federal subsidy worth up to $7,500 per vehicle—a credit that expired at the end of September. Without it, automakers expect demand to dip sharply.

"It's going to be a vibrant industry, but it's going to be smaller, way smaller than we thought," Ford CEO Jim Farley said Tuesday. General Motors’ CFO Paul Jacobson echoed that concern: "I expect that EV demand is going to drop off pretty precipitously," he told a conference last month.

Even with those gains, the US—still the world’s second-largest car market—remains a laggard compared with global peers, where global EV adoption has accelerated rapidly. Electric and hybrid vehicles accounted for nearly 30 percent of new sales in the UK last year and approximately one in five across Europe. In China, electric models accounted for almost half of all car sales in 2023 and are expected to become the majority this year, according to the International Energy Agency.

Analysts say policy differences largely explain the gap. Other regions have offered stronger incentives, stricter emissions rules, and more aggressive trade-in programs. President Joe Biden tried to close the gap, tightening emissions standards, offering loans for EV investments, and spending billions on charging networks while expanding the $7,500 credit. His goal was to have half of all US vehicle sales be electric by 2030.

Supporters argue that such measures are crucial to keeping American carmakers competitive with Chinese and European manufacturers. But former President Donald Trump, who recently dismissed climate change as a "con job," has vowed to roll back many of those initiatives, echoing arguments that the EV revolution is overstated by proponents. "We're saying ... you're not going to be forced to make all of those cars," Trump said this summer, while signing a bill to strike down California’s plan to phase out gasoline-only car sales by 2035. "You can make them, but it'll be by the market, judged by the market."

Although EVs have become cheaper, they still cost more than comparable gasoline models, and sales remain behind gas cars in most segments. The average US electric car sold for approximately $57,000 in August, which is roughly 16 percent higher than the overall average, according to Kelley Blue Book.

Chinese EV giants such as BYD have been blocked from the US market by tariffs supported by both Biden and Trump, further limiting price competition. Automakers now face the twin challenges of rising tariffs and disappearing subsidies.

"It would have been difficult enough if all you had to deal with were new tariffs, but with new tariffs and the incentive going away, there are two impacts," said Stephanie Brinley of S&P Global Mobility.

Researchers warn that the policy shift could further reduce EV investment. "It's a big hit to the EV industry—there's no tiptoeing around it," said Katherine Yusko of the American Security Project. "The subsidies were initially a way to level the playing field, and now that they're gone, the US has a lot of ground to make up."

Still, Brinley urged caution before declaring the race lost, even as some argue EVs have hit an inflection point in adoption. "Is [electric] really the right thing?" she asked. "Saying that we're behind assumes that this is the only and best solution, and I think it's a little early to say that."

 

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BC Hydro Introduces 'Vehicle-to-Grid' Pilot Initiative

BC Hydro Vehicle-to-Grid Pilot enables EVs to deliver V2G power, using bidirectional charging to provide grid services, clean energy resilience, and emergency power for microgrids, critical infrastructure, and storm response.

 

Key Points

BC Hydro's V2G pilot uses parked EVs as mobile batteries, supplying bidirectional power to the grid for resilience.

✅ Medium- and heavy-duty EV integration via 60 kW charger

✅ Supports critical infrastructure and storm response

✅ Cleaner, faster alternative to diesel generators

 

BC Hydro has unveiled an innovative pilot project designed to enable electric vehicles (EVs) to contribute electricity back to the power grid, with some owners able to sell electricity back to the grid through managed programs, effectively transforming these vehicles into mobile energy storage units that function as capacity on wheels for the electricity system.

The utility company recently announced the successful trial of the vehicle-to-grid program, allowing for the transfer of electricity from the batteries of medium- and heavy-duty EVs back to the electrical grid. This surplus electricity can be utilized in various ways, including supporting emergency response efforts by energizing critical infrastructure and to power buildings during natural disasters or major storms. It offers a cleaner, faster, and more flexible alternative to conventional methods like the use of diesel generators.

BC Hydro's President and CEO, Chris O'Riley, highlighted the significance of this initiative, stating, "The average car is parked 95 per cent of the time, and with the evolution of technology solutions like vehicle-to-grid, stationary vehicles hold the potential to become mobile batteries, powered by clean and affordable electricity."

The successful test was conducted using a Lion Electric school bus provided by Lynch Bus Lines, which was connected to a 60-kilowatt charger, illustrating BC Hydro's rollout of faster electric vehicle charging across the province. BC Hydro pointed out that the typical bus battery holds 66 kilowatts of electricity, sufficient to power 24 single-family homes with electric heating for two hours. Therefore, if 1,000 of these buses were converted to electric power, they could collectively supply electricity to 24,000 homes for two hours.

This groundbreaking project is a collaborative effort between BC Hydro, Powertech, and Coast to Coast Experience, with funding support from the provincial government amid study findings that B.C. may need to double its power output to meet transport electrification.

While this pilot marks the first of its kind in Canada, similar technology has already been successfully implemented in Europe and the United States, including California's efforts to leverage EVs for grid stability that offer promising potential for enhancing the energy landscape and sustainability in the region.

Separately, Nova Scotia Power plans to pilot electric vehicle to grid integration in Atlantic Canada, underscoring growing national interest in V2G approaches.

 

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Manitoba has clean energy to help neighboring provinces

East-West Power Transmission Grid links provinces via hydroelectric interconnects, clean energy exports, and reliable grid infrastructure, requiring federal funding, multibillion-dollar transmission lines, and coordinated planning across Manitoba, Saskatchewan, Ontario, and Newfoundland.

 

Key Points

A proposed interprovincial grid to share hydro power, improve reliability, and cut emissions with federal funding.

✅ Hydroelectric exports from Manitoba to prairie and eastern provinces

✅ New interconnects and transmission lines require federal funding

✅ Enhances grid reliability and supports coal phase-out

 

Manitoba's energy minister is recharging the idea of building an east-west power transmission grid and says the federal government needs to help.

Cliff Cullen told the Energy Council of Canada's western conference on Tuesday that Manitoba has "a really clean resource that we're ready to share with our neighbours" as new hydro generation projects, including new turbines come online.

"This is a really important time to have that discussion about the reliability of energy and how we can work together to make that happen," said Cullen, minister of growth, enterprise and trade.

"And, clearly, an important component of that is the transmission side of it. We've been focused on transmission ... north and south, and we haven't had that dialogue about east-west."

Most hydro-producing provinces currently focus on exports to the United States, though transmission constraints can limit incremental deliveries.

Saskatchewan Energy Minister Dustin Duncan said his province, which relies heavily on coal-fired electricity plants, could be interested in getting electricity from Manitoba, even as a Manitoba Hydro warning highlights limits on serving new energy-intensive customers.

"They're big projects. They're multibillion-dollar projects," Duncan said after speaking on a panel with Cullen and Alberta Energy Minister Margaret McCuaig-Boyd.

"Even trying to do the interconnects to the transmission grid, I don't think they're as easy or as maybe low cost as we would just imagine, just hooking up some power lines across the border. It takes much more work than that."

Cullen said there's a lot of work to do on building east-west transmission lines if provinces are going to buy and sell electricity from each other. He suggested that money is a key factor.

"Each province has done their own thing in terms of transmission within their jurisdiction and we have to have that dialogue about how that interconnectivity is going to work. And these things don't happen overnight," he said.

"Hopefully the federal government will be at the table to have a look at that, because it's a fundamental expense, a capital expense, to connect our provinces."

The 2016 federal budget said significant investment in Canada's electricity sector will be needed over the next 20 years to replace aging infrastructure and meet growing demand for electricity, with Manitoba's demand potentially doubling over that period.

The budget allocated $2.5 million over two years to Natural Resources Canada for regional talks and studies to identify the most promising electricity infrastructure projects.

In April, the government told The Canadian Press that Natural Resources Canada has been talking with ministry representatives and electric utilities in the western and Atlantic provinces.

The idea of developing an east-west transmission grid has long been talked about as a way to bring energy reliability to Canadians.

At their annual meeting in 2007, Canada's premiers supported development and enhancement of transmission facilities across the country, although the premiers fell short of a firm commitment to an east-west energy grid.

Manitoba, Ontario and Newfoundland and Labrador are the most vocal proponents of east-west transmission, even as Quebec's electricity ambitions have reopened old wounds in Newfoundland and Labrador.

Manitoba and Newfoundland want the grid because of the potential to develop additional exports of hydro power, while Ontario sees the grid as an answer to its growing power needs.

 

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