Largest Bank in Canada Warns Electricity Supply May Falter Without Government Intervention
The Royal Bank of Canada (RBC) has said that the North American country would struggle to meet rising electricity demand in coming years without significant government intervention.
The country’s ability to meet the demand will be held back by its commitment to a net zero grid by 2035, added the report. “Ontario, the most populous province and the country’s economic engine, could face power shortages as early as 2026,” RBC warned.
The bank advised that major infrastructure upgrades were needed to deliver energy between provinces, and to store power to ensure a reliable supply.
“It is far from clear where that electricity will come from,” said RBC. Meanwhile, Canada is threatened by a global competition for critical minerals and other materials as countries scramble to decarbonise as the worldwide energy crisis worsens amid the Russian invasion of Ukraine.
RBC economist, Colin Guldimann said in the report, “Canada shouldn’t just keep up — it needs to accelerate the expansion of its electricity system or risk falling behind in a renewed Net Zero grid race.
The bank laid out the pros and cons of various options for meeting demand, including trade-offs between cheap versus reliable clean energy.
“To stay in the race, Canada needs to expedite its big push on electricity: between provinces, through decades, and across the country,” the bank said.
