Canada is preparing for a major expansion of renewable electricity as the country attempts to meet rising power demand, electrify more of its economy and reduce greenhouse gas emissions.
However, the rapid growth of energy-intensive data centres, particularly in natural gas-dependent Alberta, could complicate efforts to build one of the world’s cleanest electricity systems.
Wind, Solar and Storage Expected to Drive Growth
The federal government plans to double Canada’s electricity generation and grid capacity by 2050, an undertaking estimated to require approximately $1 trillion in investment.
Renewable energy is expected to account for much of that expansion. The Canadian Renewable Energy Association forecasts that wind, solar and energy storage will provide more than 70 percent of new generation capacity added through 2050.
Canada already produces approximately 80 percent of its electricity from clean sources, largely because of its extensive hydroelectric fleet. Prime Minister Mark Carney has said investment in renewable energy, hydroelectricity and nuclear power will significantly exceed investment in new fossil fuel generation.
Federal incentives could help accelerate that development. Clean electricity projects can receive investment tax credits worth up to 30 percent of eligible costs, while carbon capture and storage projects may qualify for credits of up to 60 percent.
Major projects under consideration or development include Nova Scotia’s Wind West program, which could provide up to five gigawatts of offshore wind power and the 200-megawatt Taylor South Wind Project in British Columbia.
Get the Green Building Project Checklist
Use this handy checklist on your next project to keep track of all the ways you can make your home more energy-efficient and sustainable.
Alberta Data Centres Could Increase Gas Demand
The renewable buildout will have to keep pace with rapidly growing demand from electric vehicles, industrial facilities and data centres.
Canada currently hosts five hyperscale data centres, but developers are reportedly planning approximately 100 more. Research from York University indicates that as many as 90 percent of those proposed facilities could be located in Alberta.
The province offers a cool climate that can lower data-centre cooling costs, but its electricity system remains heavily dependent on natural gas. Approximately 60 percent of Alberta’s power is generated using gas, creating questions about whether its growing data-centre industry can be supplied without significantly increasing emissions.
WATCH | Alberta premier welcomes massive Meta data centre twice the size of Central Park
On July 2, Pembina Pipeline and Kineticor approved a 932-megawatt gas-fired power plant intended to supply a proposed Alberta data centre. The project could eventually include a second unit of the same size.
The development highlights the challenge facing renewable power producers. Data centres require large amounts of reliable, around-the-clock electricity, while wind and solar generation vary with weather conditions.
Grid Connections Could Unlock More Renewable Power
Expanded transmission links between provinces could help address those reliability concerns.
British Columbia’s hydroelectric reservoirs, for example, could effectively provide backup and storage for wind and solar projects in Alberta. Power could move between the provinces depending on renewable output and electricity demand.
Stronger regional grids would make it easier to add renewable generation while reducing reliance on new gas plants. However, electricity planning remains largely under provincial control, making national transmission projects difficult to coordinate.
Canada’s ability to connect renewable-rich regions with fast-growing electricity markets may ultimately determine whether the country’s data-centre boom supports its clean energy ambitions or reinforces demand for natural gas.
Image from Depositphotos
