Canada Unveils Revised Clean Electricity Regulations with Net-Zero Grid Target by 2050

Canada has revealed its finalized Clean Electricity Regulations (CER). The new regulations will set a target to achieve a net zero electricity grid by 2050. The revisions in the regulations ended the previously set goal of having an emissions-neutral grid in 2035.

Regulatory Changes

The federal government decided to extend the target year upon receiving feedback from various provinces and the energy industry. This raised eyebrows about electricity reliability, costs, and the risk of stranded assets due to the draft regulations, according to Reuters.

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According to government officials, the more ambitious target of 2035 would have disrupted the energy market. This would result in making electricity supply less reliable and more expensive.

Despite these changes, Canada already obtains 85% of its power from clean sources. The sources include hydropower, wind, and solar. But the new regulations make it more challenging for Canada to meet its climate target of reducing carbon emissions by 45–50% below 2005 levels by 2035.

Revised Emission Standards, Flexibility for Power Plants

The finalized CER regulations aim to reduce nearly 181 megatonnes of cumulative carbon emissions from the electricity grid between 2024 and 2050. This is a significant reduction, but it's less than the draft proposal. The draft proposal targeted a cut of 342 megatonnes by mid-century.

As per the revisions in the regulations, 65 tonnes per GW of electricity has been decided as the emissions cap for power generating units. Previously, the limit was 30 tonnes. Power plants will also be allowed an additional 35 tonnes per gigawatt hour if they purchase emissions offset credits. The flexibility in these rules aims to ensure that facilities can meet their annual emissions limits.

Co Generation Facilities and Provincial Opposition

The regulations also draw distinctions for co-generation facilities, such as those of some oil sands operators in Alberta. These facilities that produce electricity for their use rather than feeding it into the grid are exempted from the new rules.

However, the province of Alberta, the leading producer of oil and gas in Canada, has contested the proposed regulations. They remain unhappy unhappy with the final version. They claim the regulations encroach on provincial authority and plan to mount a legal challenge against them.

Final Steps for the New Regulations

The revised Clean Electricity Regulations have been presented to the public and are expected to undergo further consultations before final approval. Despite the changes, experts believe these regulations remain an important step in Canada’s long-term clean energy transition and its efforts to meet climate goals.