Green Electricity Means Rising Costs for Consumers: Federal Memo

The West Pubnico Point Wind Farm in Lower West Pubnico, N.S., in a file photo. (The Canadian Press/Andrew Vaughan)

Moving to green electricity will mean higher costs for consumers. That’s from a staff memo sent to federal Environment Minister Steven Guilbeault, according to Blacklock’s Reporter.

“As the economy transitions to net zero by 2050 there will be increased demand for clean electricity to decarbonize other sectors such as transportation or buildings,” said the March 27 memo. “Some experts are predicting that demand could double by 2050.”

“This expansion of clean electricity supply towards 2050 will increase costs,” it added. The document was written in preparation for testimony by Mr. Guilbeault at the Commons environment committee.

So far, the federal cabinet has not detailed the impact of phasing out coal-fired power plants or mandating new sales of electric cars. In a 2016 submission to the Senate energy committee, the Canadian Electricity Association put infrastructure costs at $350 billion. At the time, the CEO said the extra money would likely come from utility rates.

The Senate committee said in a 2017 report “Electricity Sector In A Carbon Constrained Future” that it could not estimate the impact on ratepayers, but noted “Many Canadians could soon be paying higher electricity bills as the country tries to meet reduction targets for its greenhouse gas emissions.”

Others have also warned of substantial increases. In a Feb. 3 Inquiry Of Ministry tabled in the Commons, the Department of Natural Resources said estimates of costlier electricity were “still being developed” but the cabinet’s electric car mandate alone would increase overall demand for electricity by 23 percent.

“The majority of grid costs associated with electric vehicles likely will be attributed to upgrades to distribution systems,” said the Inquiry.

Cabinet mandated elimination of new gas- and diesel-powered cars and pickups by 2050.

The information tabled in the Inquiry was requested by Conservative MP Warren Steinley, who asked, “What are the government’s projections related to the increased amount of electricity that will be needed to power the electric vehicle charging stations in 2025, 2030 and 2035, and has the government developed a detailed plan on how to increase the capacity of Canada’s electricity grid?”

The resulting increase in demand for electricity “represents approximately 3.4 percent (by 2030), 16 percent (by 2040) and 22.6 percent (by 2050) of today’s domestic electrical power demand,” said the Inquiry.