Thank you, Mr. Chair.
Thank you to the committee for the opportunity to speak here today.
My name is Scott MacDougall. I am the director of the Pembina Institute's electricity program.
Before joining Pembina, I worked in climate policy with the Government of Alberta. I've also worked in the oil sands industry, including as the lead for a large, 800-megawatt cogeneration project near Fort McMurray, Alberta.
Pembina Institute is a national charity and a clean energy think tank advocating for strong, effective policies to support Canada's clean energy transition. Pembina was formed 40 years ago in Drayton Valley, Alberta, as a response to a sour gas blowout. It now has offices in Calgary, Edmonton, Ottawa, Toronto and Vancouver.
I'd like to talk about a few things that I think are very exciting about the clean electricity investments and prospects for Canada cementing its clean electricity advantage among investors and businesses.
According to the International Energy Agency, global clean energy investments this year are nearly double the investments in fossil fuels. Annual investments in solar photovoltaics now surpass all other power generation technologies combined.
As a result, some jurisdictions around the world are now producing upwards of 60% of their annual electricity needs from wind and solar alone. Since the costs of wind, solar and batteries are already competitive with gas-fired power and other alternatives—and their costs are continuing to drop—this is a good sign for prevailing strong investment in renewables.
Canada has a distinctive electricity system, offering many decarbonization opportunities. Currently, it's a collection of 13 unique and complex grids. While some hydro-rich regions in Canada are already benefiting from emissions-free power or have legacy nuclear, many are still heavily dependent on fossil fuels. Canada gets just under 9% of its electricity from wind and solar today, compared with the United States at 15% and the United Kingdom at 34%.
Alberta, which has led the country in wind and solar development over the past few years, gets 18% of its power from those sources. However, modelling we completed with the University of Alberta found that, by 2035, Alberta could get up to about 58% of its electricity from wind and solar. This is a fair jump from where it is today.
Based on a jurisdictional scan that we'll be publishing soon, numerous grids have already achieved that, enabled by a combination of factors, such as grids that are well connected internally and with neighbouring grids, a diverse generation mix, distributed battery and solar resources on smarter grids, and in many cases, demand-side management approaches, such as energy efficiency and demand response.
Here in Canada, the Ontario Independent Electricity System Operator's conservation and demand management programs offer some very good examples of those demand-side programs and successes.
I think it's fair to say that clean electricity is the cornerstone of a clean economy and a key driver for reducing economy-wide emissions. We are seeing many businesses looking to electrify their processes and wanting to set up shop in places that can offer clean electricity. In particular, there have been announcements recently from automakers, critical mineral producers, battery companies and data centres expressing that they want to operate on clean grids.
This indicates that investments in clean energy and the demand for it are likely to continue to rise. If we can't meet that demand, then industry will take its investments elsewhere.
Canada and the provinces have a lot to gain from clean electricity and have a lot to lose from sending mixed or negative signals and from a lack of progress in modernizing the grids to support these investments. The federal clean electricity regulations will be critical for supporting grid decarbonization across the provinces. They offer policy certainty and a strong signal to industry, and encourage increased uptake of renewables for the economic and health benefits of all Canadians.
I'd also like to note the value of modernizing our grids to ensure continued reliability and affordability. Ontario has again shown great leadership in this area, being the first province to phase out coal in 2015. Now, through its conservation and demand management programs, it has decreased demand by 15% versus what it would otherwise be today. The province is now 89% emissions-free. However, decisions made today will determine whether Ontario can maintain and grow its clean energy advantage.
We are fortunate here in Canada. Our abundance of renewable resources, including wind, hydro and solar, put us in a good position to operate a clean electricity grid. Canada is already 84% emissions-free. We need to scale up efforts to keep pace with global investments.
Thank you.