Natural Resources

The House of Commons Standing Committee on Natural Resources met to study Canada's electrification, energy self-sufficiency and domestic energy future. Appearing as witnesses were Kevin Lockhart, Director of Buildings at the Pembina Institute; Luis Calzado, Chief Executive Officer of the Association québécoise de la production d'énergie renouvelable; and Martin Tremblay, Business Development Manager at IDEA Contrôle Inc.

Kevin Lockhart argued that Canada's electricity strategy should recognize the full scope of the energy system, starting with energy efficiency and integrating buildings, transportation and industrial processes to double the grid by 2050. He recommended leveraging federal housing investments to enforce ambitious building codes, continuing programs like the smart renewables and electrification pathways program, and advancing indigenous leadership in clean electricity projects. He noted that distributed resources, such as batteries and vehicle-to-grid technology, can provide local resilience and help manage peak loads, and that the financial and insurance sectors are beginning to recognize the benefits of retrofits.

Luis Calzado stated that Canada's renewable energy potential is largely untapped, noting that wind power generation lags behind other G7 countries, and that solar costs have fallen 90% since 2010. He called for major investments in transmission and distribution grids, faster regulatory approvals for renewable projects, and a skilled workforce to support deployment, estimating that 11,000 megawatts of wind power in Quebec by 2035 could generate $35 billion in investments and 112,000 full-time jobs. He supported the clean technology investment tax credit and accelerated depreciation for renewable energy infrastructure, and emphasized that public-private partnerships, like those between Hydro-Québec and independent producers, are key to deployment.

Martin Tremblay argued that the focus on adding generation capacity overlooks the need to manage power demand at the industrial consumer level, where peak demand billing can account for 50% of an industrial electricity bill. He recommended increasing the federal tax credit for behind-the-meter energy storage from 30% to 50% of costs, or about $1,000 per kilowatt, and relaxing grid regulations to simplify installation. He noted that his company's storage and AI systems can reduce billed kilowatt demand by up to 30% and shorten project timelines, and that in off-grid northern communities, such storage can cut diesel consumption by 20% to 25%.

The committee also heard brief exchanges on the impact of the industrial carbon tax on electricity prices, with Tremblay stating it would increase costs for fossil-fuel-based generation but not necessarily for hydroelectric systems in Quebec. No procedural debate, motions or votes occurred during the meeting.