Good afternoon, Chair.

Thanks to you and this committee for inviting me to testify on behalf of the Canadian Renewable Energy Association, also known as CanREA.

As part of this chamber study on Bill C-59, the fall economic statement implementation act, 2023, I would like to start by acknowledging that I am joining you today on the traditional and unceded territory of the Anishinabe Algonquin people.

CanREA is the voice for the wind energy, solar energy and energy storage solutions that will power Canada's energy future. Our 300-plus members are uniquely positioned to deliver clean, low-cost, reliable, flexible and scalable solutions for Canada's energy needs. With the passage of this bill, they will be able to do so at a pace and scale like never before, thanks to the proposed clean technology investment tax credit.

My members and the whole team at CanREA are very optimistic about the opportunities that the clean technology investment tax credit will create. This measure will allow companies to invest in a variety of low-carbon technologies to recoup between 20% and 30% of their project's capital costs as a refundable tax credit. When the enabling legislation for this investment tax credit is passed, it will rapidly accelerate the deployment of technologies like battery energy storage, solar systems and wind across Canada by strengthening the economics of renewable energy projects and crowding in capital to the sector.

As you well know, achieving Canada's climate goals will require a doubling or tripling of our generation capacity, but this is not the only reason to invest in new renewable electricity generation. The International Energy Agency notes that electricity consumption from data centres, artificial intelligence and the cryptocurrency sector could double by 2026. If Canada wants to stay ahead in a rapidly digitizing global economy, we will need more electricity generation, and the clean technology investment tax credit and the forthcoming clean electricity investment tax credit will enable that.

With these investment tax credits in place, Canada will be a competitive market for international developers of wind, solar and energy storage projects to invest in. Their relatively straightforward design and refundability will put the country in a competitive position relative to the U.S. and other jurisdictions that are looking to decarbonize their electricity systems. Companies looking to invest in renewable energy have also stated that the fact that the clean technology investment tax credit is available out to 2034 gives them confidence that Canada will remain competitive in the long term.

That said, CanREA members and their capital providers have made it clear that without these credits, they will invest in the U.S., the EU and other markets where a path to profitability is clearer. In a world where the demand for electricity is significantly growing, projects and capital will move to the area of highest return.

The reason I emphasize the importance of both the clean technology investment tax credit and the clean electricity investment tax credit, which has not had its enabling legislation introduced, is that the clean technology investment tax credit fails to include CanREA's indigenous members. CanREA and its members are committed to economic reconciliation, and this is why partnership with indigenous communities and companies is the industry norm.

This norm has been institutionalized, with every province and territory that has issued a call for power recently requiring that all projects bidding into these processes have some component of indigenous equity ownership. The exclusion of indigenous entities from the clean technology investment tax credit makes it incredibly difficult for bids into calls for power to be structured and renders the industry's traditional limited partnership ownership structure unworkable.

CanREA has been advocating change since the draft legislation for the clean technology investment tax credit was introduced in the summer of last year. Including indigenous entities as eligible entities to receive the clean technology investment tax credit will resolve the issues I've outlined.

For further details on this, I would encourage members of this committee to refer to CanREA's submission, which accompanies my testimony today.

Thank you very much for your time and consideration. I look forward to your questions.

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