By: Glenn Wright, Chad Eggerman, and Janelle Anderson

Energy is essential for economies and societies everywhere. Energy must be affordable, reliable, and sustainable. The world is undergoing a significant economic transformation into the Age of Electricity. Clean electricity can be produced in many ways, can be transmitted over vast distances, and can be consumed with very high efficiency. The Canada Electricity Advisory Council stated in 2024:

Electrification is becoming the preferred method for emissions reductions in much of the world for several reasons. Electricity can often be consumed far more efficiently than alternatives, it draws from resources that every region has in one form or another, and often offers the lowest overall cost and the greatest ease of implementation, especially when accompanied by major improvements in energy efficiency.

According to the International Renewable Energy Agency, renewable energy accounted for 86% of the world’s net new generating capacity in 2023. Renewable energy is now more affordable, just as reliable, and more sustainable than fossil fuel energy. People and policymakers are beginning to accept the fact that to stop global warming, it is necessary to replace fossil fuel energy with clean energy.

At Procido LLP, we recognize that change is the only constant. There are many factors creating uncertainty in our world today. Uncertainty in our energy future is driven by numerous factors. Anticipated demand for Artificial Intelligence (AI) may be significant, but DeepSeek’s sudden emergence suggests that AI can be done with less energy. President Trump has declared an energy emergency and pulled out of the Paris Agreement on climate change, promising to “drill, baby, drill.” President Trump’s policies may delay electrification in North America, but that too is uncertain, as heat pumps, EVs, rooftop solar, and batteries are becoming common place in many states.

Here in Canada, the federal government recently released the long-awaited Clean Electricity Regulations and published Powering Canada Forward: A Clean Electricity Strategy.  The government of Canada envisions a low-carbon future defining the economic opportunity of this generation with clean electricity at its core.

Saskatchewan and Alberta disagree. Several politicians from these prairie provinces have characterized the Clean Electricity Regulations as unconstitutional. Alberta has stated its intention to challenge the regulations in court, while Saskatchewan has instructed SaskPower to consider extending the operating life of its coal plants at Estevan and Coronach. Saskatchewan may be rolling back the clock on electricity policy by 13 years, as federal regulations to shutter coal generation were first introduced by Prime Minister Stephen Harper in 2012. Saskatchewan’s intention to revive and extend coal generation, combined with Alberta’s new restrictions on renewable energy development have stalled renewable investments. Despite Saskatchewan and Alberta having world-class wind and solar resources, the politicization of our energy choices is driving away investors.

Investors need policy clarity. Uncertainty undermines investor confidence. Although we cannot predict disruptions like DeepSeek AI, we can (and should) address our domestic governance by de-politicizing electricity and calling for more collaboration across all levels of government. Instead of waiting for Alberta to commence its court challenge of the Clean Electricity Regulations, perhaps it would be more effective for the federal government to ask the Supreme Court of Canada to consider the constitutionality of not only the Clean Electricity Regulations, but also The Saskatchewan First Act, and the Alberta Sovereignty within a United Canada Act? Afterall, the sooner we can resolve these issues of jurisdiction, the sooner we can collaborate to realize the economic opportunity of the clean energy transition.

Procido recognizes that uncertainty is causing economic harm to Saskatchewan and Alberta. Given the threats of tariffs from President Trump, we should not tolerate the ongoing politicization of energy and uncertainty caused by domestic policymakers. To address the uncertainty caused by potentially unconstitutional legislation, Procido has sent the following letter to the Federal Minister of Energy and Natural Resources Jonathan Wilkinson, Minister of Environment and Climate Change Steven Guilbeault, and Minister of Justice and Attorney General of Canada Arif Virani:

Letter to The Honourable Ministers Wilkinson, Guilbeault and Virani

Disclaimer

This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice. Contact Procido LLP (www.procido.com) if you require legal advice on the topics discussed in this article.