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Wind and solar should make up the bulk of new electricity generation in the next decade as Canada strives to expand its transmission system and achieve its goal of creating a zero-grid by 2035, with natural gas “inevitably” in the energy mix in the long run. short-medium term” A new report from the Royal Bank of Canada says.
Why are wind and solar energy among the report’s leading short-term solutions? The cost of wind and solar energy has fallen by 70 and 90 percent, respectively, making them “the cheapest new sources of electricity,” said Colin Goldman, an economist at RBC.
Furthermore, build times on these types of projects are fast, which means they can be added to the network at a faster pace than other types of generation sources.
“Counties facing near-term challenges should be strongly inclined to build renewables, reduce inefficiencies, and maintain their current gas capacity. The toughest options are yet to come,” he said.
On the natural gas front, Goldman said existing terminals must continue operating until 2035 to ensure the transition to the net-zero grid goes smoothly.
Canada already Clean electric energy due to hydropower resources, but it at the crossroads. Consumption is expected to increase by 50 percent over the next decade, and an overhaul is needed if the power grid is to double by 2050.
As a result, regional and federal governments will need to make a series of choices that account for decarbonization while ensuring the network is reliable and affordable.
“If they get it wrong, Canada could suffer Europe’s fate of a faltering and insecure energy grid, which leaves consumers with very high bills,” Goldman said.
An energy crisis looms in Canada closer than many might expect.
The report, released on Wednesday, warned that Ontario – “Canada’s economic engine” – could face energy shortages “as early as 2026, especially as existing contracts for renewable energy and gas plants are expiring.” Among the reasons behind the potential shortage is the high demand for electricity for electric vehicles and electrified public transportation.
In the west, Alberta and Saskatchewan will also have to choose a route soon. These counties have abundant solar and wind energy sources, but coal has played an “important role” in their grids and some of these plants are being converted to gas. Given the provinces’ abundant natural gas resources, Goldman said eliminating their role could be politically complicated.
Of course, the wind and the sun have their own challenges, including “intermittent” – those times when the wind doesn’t blow and the sun doesn’t shine. Add to this the high cost of energy storage.
This is where the important long-term choices come into play.
The RBC report examined four scenarios, a range of which it believes could help fill in the gaps in a grid that relies heavily on volatile energy sources. However, each option carries its own risks.
They include inter-provincial energy exchange although the transmission system has to be expanded; Equip “gas stations with carbon capture, use and storage (CCUS) units” using technology that remains “unproven” and expensive; Creating a renewable energy storage network, which could cost $7 billion more than a carbon capture option; Keeping hydro and nuclear power “in the mix” by building smaller reactors and tapping Canada’s huge hydro potential.
“The green economy of the future requires green energy, and with Canada’s population and economy growing by 2050, so will a lot of it,” Goldman said. “It’s time to start acting now, if we want to transform the sector and meet the standards of reliability and affordability that Canadians expect.”
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Another big rate hike US Federal Reserve Chairman Jerome Powell has been on the offensive against inflation, raising the Fed’s benchmark interest rate by 75 basis points for the third time in a row. The rate is now three to 3.25 percent – the highest level since before the 2008 financial crisis, and has risen from nearly zero at the start of this year. Powell and his fellow FOMC members pledged to keep raising prices until inflation is tamed. “We are purposefully moving our policy position to a level that is restrictive enough to bring inflation back to 2 percent,” he said. Press Conference In Washington after the price announcement. Photo by Elisabeth Frantz/Reuters
- The Bank of England releases its interest rate decision
- Air Canada Chief Financial Officer Amos Kazaz addresses CIBC
- Statistics Canada will release employment insurance data for July
- The federal court has a hearing for a class action suit of black public servants.
- The Parliamentary Budget Officer will publish two new legislative notes on cost titled “Supplementary Tax on Banks and Life Insurance Companies” and “Canada Redemption Profits”
- Standing Committee on Natural Resources meets on a fair and equitable energy transition in Canada
- Jean-Yves Duclos, Minister of Health, and Caroline Bennett, Minister of Mental Health and Addiction, will announce next steps on the review of Canadian cannabis legislation
- The Standing Committee on Industry and Technology is holding a meeting on Bill C-235, a law that respects building a green economy in the prairie
- The Elevate Festival Tech Conference continues in Toronto
- BC Seniors attorney, Isobel Mackenzie has released “British Columbia Seniors: Falling Back,” a report on the income and affordability challenges of seniors in British Columbia.
- Jonathan Wilkinson, Secretary of Natural Resources, will give a media call as he participates in the Global Clean Energy Action Forum September 21-23 in Pittsburgh, Pennsylvania, and speak at a moderated discussion titled “Supporting Communities and Workers Through Clean Energy Investing”
- Today’s data: Initial jobless claims in the US
- Notable profits: Cineworld Group PLC, Costco Wholesale Corp., FedEx Corp., Reitmans Canada Ltd.
Canada’s home ownership rate has fallen to 66.5 percent after peaking in 2011 at 69 percent, according to Statistics Canada’s release on Wednesday, with the agency acknowledging that people are having a hard time walking away from the margins.
“Trying to figure out when is the right time to buy is a difficult decision that can leave Canadians wondering how long they want to hold out to enter the real estate market – or whether they want to,” the agency said in its report.
While the slowdown in home starts and sales continues, house prices have previously risen to such levels that even a major correction may not be enough for most Canadians to enter the market given current interest rates.
Adults under the age of 75, especially young millennials between the ages of 25 and 29, were less likely to own their own home in 2021 than a decade earlier, according to Statistics Canada’s report, The Housing Profile of Canada 2011-2021.
Shanta Campbell from the Financial Post has Full Story.
Interest rates continue to rise, which means that the home buying market has slowed. People who would have bought are now staying in their rental apartments, and that means lower vacancy rates. Landlords, faced with high mortgage payments and inflation, are increasing rents when they can. All of this means that renters are under more pressure than ever, particularly in Canadian cities. Our content partner money wisdom He explores ways to find an affordable place to live.
Today’s Posthaste wrote Gigi Sohanek (Tweet embed), with additional reporting from The Canadian Press, Thomson Reuters and Bloomberg.
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