By: Janelle Anderson, Glenn Wright, P.Eng., and Chad Eggerman
Canada is at a pivotal moment in its history. The potential for a trade war with the United States is forcing us to rethink how we compete, innovate, and sustain long-term prosperity. At the same time, we’re facing a global climate crisis that underscores the need to transition to clean energy. The convergence of these dual crises presents an unprecedented opportunity to position Canada as a global leader in the economy of the future.
Yet, as we look ahead, some national discussions remain mired in the past. The debate over reviving the abandoned Energy East pipeline—intended to transport oil from Alberta to eastern ports—epitomizes an economic vision rooted in yesterday’s economy. But as the familiar Canadian saying goes, we must skate to where the puck is going. Investing in infrastructure that locks us into old economic models risks leaving Canada behind as the world shifts toward cleaner, more competitive industries. Instead, we must embrace bold, forward-thinking projects that position Canada for long-term success.
The federal government’s Clean Electricity Strategy recognizes this moment for what it truly is: a chance to transform our economy, create new industries, and secure long-term job growth in every region of the country. This is not simply about mitigating climate risks—though those are real and growing, as record-breaking wildfires, floods, and droughts have shown. It is about unlocking Canada’s enormous economic potential in shifting to a low-carbon economy. Canada’s clean technology sector is already growing three times faster than the national average, and the global energy market rapidly evolving. The choice is clear: embrace the future or risk being left behind.
However, seizing this opportunity requires more than optimism—it demands strategic action, bold investments, and collective effort. The serious trade disruptions with the U.S. serve as a stark reminder that economic resilience cannot rely solely on traditional industries or long-standing partnerships. Instead, Canada must chart its own path by prioritizing clean energy, advanced manufacturing, and critical mineral development—sectors that will drive growth in the decades ahead. With global competitors like China making massive investments in clean energy technologies and supply chains, Canada cannot afford to fall behind.
There are three key imperatives for ensuring Canada’s economic success in this rapidly evolving landscape:
- Thinking Big – Making transformational investments in clean energy, infrastructure, and technology to build a globally competitive economy.
- Acting Collectively – Strengthening collaboration between provinces, territories, the federal government, and the private sector to maximize economic opportunities.
- Investing Strategically – Directing capital toward industries that will drive long-term growth, from clean electricity and critical minerals to electric vehicles and hydrogen production.
The stakes are high. The next decade will define whether Canada leads or falls behind in the global economy. By acting decisively now, we can build an economy that is resilient, competitive, and positioned for the future.
Thinking Big: Transforming SaskPower
In Saskatchewan, the gap between future economic opportunities and political decision-making is especially stark. Despite extensive public consultations through SaskPower’s Our Power Future initiative (2022-2024) related to Saskatchewan’s future generation supply, Premier Moe and Minister Harrison are steering the province toward prolonged reliance on coal—well beyond the federal shutdown mandate of 2030. Saskatchewan’s residents take pride in their crown corporations, but perhaps it’s time to rethink SaskPower’s structure.
Should SaskPower transition from a vertically integrated monopoly into a system operator focused on transmission, distribution, and grid stability? If we revisited the Saskatchewan Power Corporation Act to allow independent power producers (“IPPs”) to develop generation projects with private capital, Saskatchewan could take advantage of its world-class renewable resources while reducing political interference in energy planning. Would the market truly choose to extend coal-fired generation in the face of cheaper, cleaner alternatives?
Electricity system operators recognize four major trends shaping the electricity sector:
- Digitalization – Digital, AI-driven grid management and smart infrastructure.
- Decarbonization – Transitioning away from fossil fuels.
- Decentralization – Distributed generation with reduced reliance on large generation plants.
- Democratization – Greater consumer control in the production and management of energy resources.
SaskPower could be transformed into a modern grid operator with ownership of the transmission and distribution assets, focusing on grid modernization and system reliability while enabling independent investment in generation. Decentralized generation could involve power producers of all sizes (from large co-generation projects, to rural wind, and residential solar). If SaskPower’s monopoly on generation were removed, it would allow Saskatchewan to scale up renewable energy—potentially adding 30,000 MW of new wind and solar in the next decade. Given the variability of wind and solar, this would effectively double the province’s “firm” generating capacity while tripling or quadrupling actual electricity production.
But where would this electricity go?
Acting Collectively: A Collaborative Approach to the Clean Energy Transition
An example of forward-thinking economic strategy lies in deepening energy cooperation between Saskatchewan and Manitoba. Manitoba generates over 97% of its electricity from renewable hydro electricity, but faces extreme fluctuations in water availability—severe drought in 2021-22, record high water flows in 2022-23, and another drought in 2023-24. With climate change expected to exacerbate these extremes, Manitoba Hydro faces growing operational risks.
One way to increase resilience and reduce risk is to build high-capacity inter-provincial transmission between Saskatchewan and Manitoba. A strengthened interprovincial transmission network would benefit both provinces. Saskatchewan’s abundant wind and solar energy could supplement Manitoba’s hydro generation, with hydro acting as a natural battery to smooth out wind and solar variability. In return, Saskatchewan would gain access to Manitoba’s firm, low-carbon power. The benefits extend beyond the two provinces: expanding interties east, west, and north would improve reliability, reduce energy costs, support energy security by reducing reliance on volatile U.S. markets, and attract industry with the availability of clean power.
Currently, Manitoba has about 1,000 MW of transmission capacity connecting it south to the Midcontinent Independent System Operator (“MISO”) but less than 300 MW linking to its western neighbor, Saskatchewan. With the impending U.S. trade war, federal investment in interprovincial transmission infrastructure would be a strategic move to strengthen Canada’s energy independence and security. Canada could also facilitate foreign investment by incentivizing private capital from the EU to finance major wind and solar projects in Saskatchewan.
By leveraging complementary resources—Saskatchewan’s wind and solar and Manitoba’s hydro—the provinces can collectively achieve a more reliable, clean, and affordable electricity system while demonstrating the benefits of regional energy cooperation. This approach highlights how Canada can solve economic and climate challenges simultaneously—by modernizing infrastructure, reducing emissions, and enhancing energy security through strategic partnerships. In contrast to projects that double down on fossil fuel dependence, initiatives like this one offer a viable, forward-looking alternative that aligns with both economic and environmental imperatives.
Investing Strategically: Long-Term Growth in Canada’s North
Beyond provincial collaboration, Canada must invest strategically in its northern regions. Climate change is rapidly reshaping the Arctic, opening the Northwest Passage to shipping while simultaneously increasing extreme weather and wildfires that threaten communities, increase air pollution, and transition the boreal forest from a carbon sink to a carbon source. The northern territories represent a treasure trove of critical minerals—essential for electric vehicles, batteries, and clean technologies—yet lacks the infrastructure needed to responsibly develop these resources. Developing the north is not just an economic imperative—it’s a sovereignty issue. The world recognizes the northern hemisphere as the next frontier for resources and development. As global interest in the Arctic grows, Canada must take proactive steps to secure its vulnerable northern borders.
Canada’s national energy strategy must include the north, prioritizing:
- Energy infrastructure – Expanding clean electricity to power sustainable mining and industry focused on critical minerals.
- Transportation networks – Strengthening roads, rail, ports, and air links to facilitate economic activity.
- Indigenous leadership – Empowering Indigenous nations in actively managing the boreal forest to protect habitat, mitigate wildfire risks, and harness the boreal forest to drawdown atmospheric carbon using emerging technologies such as Bioenergy with Carbon Capture and Storage (“BECCS”).
Conclusion
These are not abstract policy debates; they are critical decisions that will shape Canada’s economic future. Instead of fixating on reviving a pipeline from the past, we should embrace bigger ideas that reflect where the world is headed: clean energy, interprovincial collaboration, and a digitalized, decentralized, and democratized energy system for all Canadians.
Burning things is a relic of the last century. The future is electric. Around the world, economies are rapidly transitioning toward clean energy and advanced technology. Canada must think big—and act now—to lead this transformation.
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.