Goals

To drive national prosperity, ensure energy abundance, and energy security, we need a highly competitive and efficient environment for developing and deploying electricity generation, storage, and distribution technologies. These must meet strong criteria for cost, safety, environmental performance, and land use. This can be achieved by planning for growth, reforming and streamlining regulatory processes, incentivizing qualifying innovations, and removing systemic barriers to building and deploying electricity infrastructure at speed and scale. Specifically:

• Deploy an additional 15,000 MW of new, qualifying clean electricity capacity by 2035.
• Reduce average approval times for qualifying major generation projects to less than 1 year by 2027. 

Background and Motivation

History demonstrates a clear pattern: transformative economic progress follows leaps in available energy – from the coal and steam that powered the Industrial Revolution, to the electrification that reshaped manufacturing and daily life in the 20th century. 

Source: Our World in Data

Canada needs a monumental expansion of its electricity supply to build a thriving Canadian economy in 2050, support a population of 50 million¹, and ensure leadership in energy-intensive industries like artificial intelligence, advanced manufacturing and raw materials processing. Canada’s electricity demand is projected to at least double, and potentially triple, by 2050². Meeting this demand with reliable, affordable power is an economic imperative.

Despite the urgency and scale of the challenge, Canada’s current regulatory environment makes it difficult to deliver the electricity infrastructure we need. Over the past decade, dozens of major projects—across nuclear, renewable, and storage—have been delayed or cancelled:

• Efforts to build interprovincial transmission like the “Atlantic Loop” have repeatedly stalled in multi-year reviews or been halted outright³. 
• Reversals in policy can put at risk or outright kill previously committed projects often leading to tens of billions of dollars in lost investment⁴.

Without rapid reform and streamlining, these systemic barriers will continue to prevent Canada from building the electricity infrastructure it needs to power prosperity, security, and growth.

There are many existing and new technologies that show promise in helping to meet growth. The International Energy Agency tracks over 600 such technologies⁵ including the next wave of generation technologies like enhanced nuclear, geothermal, nuclear (SMRs and NMRs), and fusion. Instead of government attempting to predict the ultimate technological winners in a rapidly evolving technology market, Canada must create an environment where this innovation and competition can occur.

SMRs are a good example of how this works. These reactors offer remarkable energy density (requiring potentially hundreds of times less land than wind or solar for the same reliable output⁶) and benefit from decades of operating experience demonstrating nuclear’s strong safety record⁷. SMRs can be factory-built and assembled on site which holds the potential to reverse the costly trend seen in past large projects.

But, as one analysis of historical US nuclear projects highlights, indirect costs like engineering services and regulatory overhead extended project timelines from 5 to 12 years and increased costs by 6 times from 1960 to 1980⁸. These are not just temporary issues specific to this technology—they’re built into the way we currently permit and manage energy infrastructure. If we can streamline policy, permitting, and administrative processes, SMRs—and many other promising technologies—can become cost competitive.

Canada should be the world’s leader in rapidly and efficiently deploying new generation technologies, leveraging our nation’s strengths. We possess the needed natural resources like uranium and lithium, expertise in project development and finance, established capabilities in mining and manufacturing, and a skilled workforce. To achieve this, Canada needs to dismantle the barriers that currently inflate costs and delay deployment of all major projects. Lengthy, uncertain regulatory reviews, fragmented permitting across jurisdictions, grid interconnection queues, and supply chain bottlenecks are choke points that hinder our ability to build essential electricity infrastructure.

Becoming a world-leader in has benefits beyond meeting our electricity needs. Successfully deploying advanced energy technologies domestically—proving their effectiveness here first—is the foundation for building globally competitive export industries across the entire value chain, from mineral extraction to advanced manufacturing and AI-powered grid management software. This industrial expansion will require and develop Canada’s pool of skilled tradespeople—electricians, pipefitters, welders, technicians, and engineers—drawing talent from existing sectors and creating new high-value careers. The expansion will also draw on Canadian financial expertise, providing new home grown investment opportunities.

Ultimately, this approach will unleash Canadian innovation, drive down long-term energy costs, attract global investment, and deliver the energy abundance needed to power Canada’s prosperous future. 

Real-World Solutions

Examples of balancing speed, safety, and effectiveness in critical infrastructure:

Texas Competitive Renewable Energy Zones (CREZ): Facing gridlock for wind power, Texas regulators and legislators proactively identified optimal zones, planned, and funded ~$7 billion in new transmission lines before full generation build-out. This state-led, coordinated effort rapidly unlocked massive private investment in wind energy by removing a key bottleneck while managing grid integration⁹. Lesson: Proactive infrastructure planning and removing systemic barriers can unleash market-driven deployment at scale.

France’s TGV High-Speed Rail Network: The initial phases (1976-83) of France’s TGV were characterized by strong central government commitment, standardized technology, streamlined land acquisition processes under public utility declarations, and focused execution, enabling rapid construction of a transformative national infrastructure network¹⁰. Lesson: National priority projects benefit immensely from political will, standardization, and mechanisms to ensure timely execution while respecting core processes.

China’s Nuclear Power Expansion: China is undertaking the most ambitious nuclear power program globally. As of early 2024, mainland China had 55 reactors operating (approx. 57 GWe) and 27 reactors under construction (approx. 30 GWe) – representing nearly half of all nuclear reactors currently being built worldwide. Driven by national Five-Year Plans aiming for energy security and decarbonization, China has often connected multiple reactors to the grid annually. This rapid scale-up relies heavily on significant state commitment, fostering a domestic supply chain, and leveraging standardized Generation III designs like the Hualong One to accelerate construction and commissioning¹¹. Their experience highlights how national prioritization, industrial capacity building, and standardization enable large-scale nuclear deployment and innovation at a pace unmatched elsewhere. Lesson : Sustained national commitment, standardization, and developing domestic industrial capabilities are powerful levers for accelerating nuclear deployment.

What Needs To Be Done

Accelerating the build of Canada’s electricity generation infrastructure requires bold reforms to prioritize efficient execution for qualifying electricity generation projects, coupled with financial support mechanisms.

• Establish the “Electricity Acceleration Delivery Taskforce”:

  • Create a small, highly empowered taskforce via Order in Council, reporting to the PMO, with representatives from key departments and regulators and industry.
  • Develop comprehensive plans to accelerate the creation of energy generation, transmission and storage through identifying needed sites, and supporting infrastructure as well as a clear understanding of key technologies and associated approvals.
  • Mandate this taskforce to actively monitor qualifying projects, identify specific bottlenecks (federal, provincial, or private sector), and use authority to expedite resolution across government.

• Streamline Siting and Supporting Infrastructure:

  • Develop a national inventory of pre-assessed sites suitable for various qualifying electricity generation, transmission, and storage technologies, coordinating with provinces and Indigenous partners.
  • Mandate proactive, coordinated planning between federal/provincial bodies and grid operators for necessary grid upgrades, ensuring interconnection queues do not become the primary bottleneck.
  • Reform environmental assessment processes for qualifying projects to focus on material impacts within defined timelines, integrating Indigenous consultation early and effectively.

• Enact the “Energy Competitiveness and Acceleration Act” (ECAA) within 3 months:

  • Mandate all relevant federal regulators (CNSC, IAAC, CER) to establish technology-neutral, performance-based, risk-informed approval pathways for electricity generation projects meeting the program criteria (cost potential, safety, speed, clean, land-efficient).
  • Legislate significantly reduced timelines for all stages of federal review (e.g., target total federal review under 1 year for projects using pre-certified designs or meeting pre-defined site criteria). Implement mechanisms for accountability if deadlines are missed, and pathways for emerging technologies & approaches.
  • Empower regulators to utilize pre-approved designs, standardized component certifications, and international reference standards to avoid redundant reviews. Focus assessments on safety and environmental protection, while eliminating low-value procedural delays.

• Launch the “Canadian Electricity Innovation Fund” (CEIF) - Designed for Impact and Fiscal Prudence:

  • Establish a $15 billion fund managed by professionals with expertise in energy finance, project development and technology, operating under a clear mandate set by the government but with operational independence for investment decisions.

  • Employ a blended finance strategy prioritizing tools with potential for financial return to the Crown, aiming for long-term portfolio cost neutrality or better:

    • Strategic Equity Co-Investments: Take minority equity stakes in promising FOAK projects and Canadian manufacturing ventures alongside significant private capital. 
    • Repayable Loans & Loan Guarantees: Offer conditional loans (e.g., for factory construction, repayable unless specific production/cost targets met) and loan guarantees (charging risk-based fees) to lower the cost of capital for private borrowers, leveraging private debt markets.
    • Contracts for Difference (CfDs) / Revenue Support: Use competitively awarded CfDs to provide revenue certainty for early projects, setting strike prices strategically to decline over time as technologies mature. 

  • Use grants sparingly, targeting only critical late-stage R&D gaps or specific bottleneck removal identified by the taskforce, not as a primary funding tool.

  • Mandate reinvestment: Structure the CEIF so that returns (interest, loan repayments, equity proceeds, net CfD gains) flow back into the fund, creating a potentially self-sustaining financial engine for ongoing electricity generation innovation and deployment over time.

• Metrics and Accountability:

  • Success measured by: average project approval, construction and commissioning time reduction; private investment dollars catalyzed by the Fund and rates of return; MW of qualifying capacity achieving operation annually; demonstrable cost reductions for technologies reaching scale.
  • The Taskforce will maintain a dashboard and publish a quarterly “Bottleneck Report” detailing delays, responsible parties, and actions taken, ensuring public transparency and accountability.

Common Questions

• What about grid connection backlogs and interprovincial electricity sharing?

  • The Taskforce will be mandated to work with provinces and grid operators on proactive planning for grid upgrades, addressing interconnection queues before they stall projects. By enabling diverse, potentially more distributed generation options that meet the criteria, we will reduce over-reliance on massive, single-point transmission expansions and implicitly support improving interprovincial sharing through a more robust and flexible overall grid. Federal co-funding for critical grid infrastructure should also be considered. 

• Is this another CO2 reduction initiative?

  • This initiative is fundamentally about securing Canada’s economic prosperity through abundant, affordable, reliable energy. While the criteria strongly favour clean energy sources (zero/near-zero emissions), aligning well with climate goals, the primary driver is enabling the economic activity, industrial growth, and improved quality of life that abundant energy provides. CO2 emissions reduction is a likely positive outcome, but the core focus is economic strength, energy diversity and security.

• What if we overbuild? Won’t this be a waste of capital?

  • This approach promotes modular and scalable technologies precisely to mitigate this risk. Unlike larger, decades-long projects, qualifying technologies allow capacity to be added incrementally, better matching actual demand growth. Furthermore, the focus on market competition and cost-effectiveness incentivizes efficient capital allocation. Abundant, low-cost energy is rarely wasted – it finds productive uses, spurs innovation, and can even become a valuable export, driving further prosperity rather than being a stranded asset.

• Wouldn’t it be cheaper to just build more solar and wind? 

  • Wind and solar are an important part of the mix, relying solely on it is impractical for meeting Canada’s total 24/7 energy needs due to intermittency and its land requirements, especially in northern latitudes. All qualifying technologies, including solar and reliable firm power sources needed to back it up, compete based on safety, cost-effectiveness, land efficiency, and scalability.

• How can a government fund realistically aim for positive returns in high-risk innovation?

  • By using financial tools like equity and structured loans, diversifying investments across a portfolio, rigorously assessing commercial potential, and leveraging private sector capital and discipline. While some investments may fail, the successes within a well-managed portfolio are designed to recoup costs and potentially generate returns over the long term. The goal isn’t guaranteed profit on every deal, but responsible fiscal management across the fund.

• Isn’t focusing on speed and efficiency still risky for safety and the environment?

  • Efficiency is not the enemy of safety. This initiative streamlines bureaucracy, not diligence. Modern, risk-informed regulation focuses resources on genuine hazards using modern forecasting, simulation and risk analysis methods. Rigorous safety and environmental outcomes remain the mandatory standard for any project to proceed or receive support.

• Will market competition truly deliver the reliable baseload power Canada needs?

  • The program’s criteria explicitly favor technologies that can provide reliable, firm power efficiently. While intermittent sources will compete, the framework inherently values the attributes needed for grid stability and economic productivity, guiding market outcomes towards a balanced and reliable system.

• Does this plan pick winners indirectly by setting the criteria?

  • The criteria reflect fundamental national needs: affordable, safe, scalable, clean, efficient electricity. Any technology meeting these deserves to compete. This rewards performance and innovation, rather than incumbency or lobbying power.

• How do we ensure accountability and prevent misuse of the CEIF funds?

  • Through professional fund management, transparent reporting, stage-gated funding based on milestones, strong governance structures, and prioritizing investments alongside significant private capital, which brings market discipline. The focus on recoupment mechanisms also ensures alignment with long-term value creation.

Conclusion

Canada’s path to greater prosperity requires unlocking electrical energy abundance. The electricity generation acceleration initiative provides a bold and fiscally responsible framework to achieve this. By creating a regulatory and government environment that promotes clarity, certainty, and long-term commitments we can foster competition among innovative electrical generation, transmission, and storage solutions against clear national criteria, radically streamlining deployment pathways. By combining this with intelligent financial tools aimed at long-term cost neutrality, we can accelerate the transition to a clean, reliable, and affordable energy future. This is not just an electrical energy plan; it is an economic strategy to secure Canada’s competitiveness, sovereignty and quality of life for generations.