$3 Trillion Boost: Electrifying Canada Could Add Trillions to Economy
A new report from New Economy Canada and the Canadian Chamber of Commerce finds that doubling Canada's electricity supply could add $3 trillion to its economy by 2050. The study, titled 'Powering Canada's Growth', used macroeconomic modelling by the Open Insights initiative to compare an electrified-economy scenario with a business-as-usual future based on current policies and measures.
The analysis shows that doubling electricity supply could support 1.6 million additional jobs in 2050 and deliver $5 in economic benefits for every $1 invested in the power sector compared to business as usual. The report identifies four key priorities to achieve this vision: sustaining political commitment and public investment, mobilizing capital at scale, building the workforce alongside the grid, and securing the supply chain.
According to Ian Bruce, President of New Economy Canada, 'Amid discussions of what an electrified economy will cost, we now have a clearer picture of what it could return, trillions in additional economic activity and over a million jobs.' The study validates the economic direction of 'Powering Canada Strong', a proposed federal electricity strategy that aims to double Canada's electricity supply.
The report highlights the importance of aligning investment tax credits, public-finance institutions, and wider business-investment policies to attract capital and keep financing costs affordable. It also emphasizes the need to modernize existing supply chains, develop Canadian capacity in critical electricity and clean technologies, and strengthen trade partnerships for products Canada cannot produce competitively.