Canada on May 14 unveiled a C$1 trillion ($729 billion) strategy to double the capacity of its electricity grid by 2050, citing rapidly increasing power demand and the need for energy security.
The announcement by Prime Minister Mark Carney comes as Canada's electricity systems are under increasing strain due to industrial growth, demand from AI data centers and greater electric vehicle use. The country's total electricity generation has fallen, however, due in part to droughts that have reduced hydroelectric capacity and the retirement of coal-fired power plants.
The plan comes as Canada looks to reduce its trade reliance on the United States due to President Donald Trump's tariffs. Canada's regional electricity grids trade more with the U.S. than they do with each other, and its U.S. electricity imports have increased every year since 2020, according to the Canada Energy Regulator.
The electricity strategy aims to use new investment tax credits to spur the construction of east-west electricity interties to connect regional power grids.
