Good afternoon, Chair. Thank you to you and this committee for inviting me to testify on behalf of the Canadian Renewable Energy Association, CanREA, as part of this committee's study of Canada's electricity grid and network.

I would like to start by acknowledging that I'm joining you today from the traditional territories of the peoples of Treaty 7, including the Blackfoot Confederacy, consisting of the Siksika, the Piikani and the Kainai; the Tsuut'ina and Stoney Nakoda first nations; and the Métis nation, who call this region home.

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, which are set to grow faster than ever.

Canadians consumed approximately 640 terawatt hours of electricity in 2022—over 60% hydro; 17.5% fossil fuels; 13% nuclear; and notably, 5.7% wind, 1.5% biofuels and 1.1% solar PV. Environment and Climate Change Canada estimates that reaching net zero will require a doubling or tripling of Canada's generation capacity by 2050 as Canadians switch from fossil fuels to clean electricity to meet their everyday energy needs. This growth in generation will require significant investment in renewable energy and energy storage.

Meeting Canada's climate targets is not the only reason to invest in new renewable energy and energy storage. Staying competitive in a rapidly digitizing global economy depends on Canada generating more electricity. The International Energy Agency notes that electricity consumption from data centres, artificial intelligence and the cryptocurrency sector could more than double by 2026, going from a global consumption of 460 terawatt hours in 2022 to more than 1,000 terawatt hours in 2026. With companies opening 20-plus megawatt facilities across Canada, the demand for power for computing here is rising.

CanREA members are ready to meet the growing demand resulting from Canada's climate goals and the needs of the future economy. They have proven that they can build new large-scale generation projects in two to five years and do so at a cost that keeps electricity affordable for Canadians. Competing technologies may require a decade, if not more.

Investments are happening now, with Ontario announcing last week the procurement of 1,784 megawatts of energy storage from 10 projects, which will be online by 2028. In total, Ontario will have up to 2,916 megawatts of energy storage capacity over 26 facilities before 2030. This story will be repeated across Canada as provincial utilities and system operators launch calls for new electricity from renewables and for energy storage.

Renewable electricity and energy storage projects can be further accelerated by the clean technology investment tax credit, ITC, and the forthcoming clean electricity ITC. The relatively straightforward design and refundability of the ITCs will put the country in a competitive position relative to the U.S. and other jurisdictions that are looking to decarbonize their electricity systems. As companies looking to invest in renewable energy have stated, the fact that the clean technology ITC, once passed, will be available until 2034 gives them confidence that Canada will remain competitive in the long term.

That said, CanREA members, including capital providers, have made it clear that without these ITCs, they will look to invest in the U.S., the EU or other markets where a path to profitability is clearer. In a world where demand is growing significantly, projects and capital will go to the jurisdictions of lowest risk and highest return. As such, I urge all parliamentarians to pass Bill C-59 as soon as possible. I also encourage the government to introduce the enabling legislation for the clean electricity ITC before the House rises for the summer.

We are particularly optimistic about the opportunities that the clean technology investment tax credit will create. This measure will allow companies investing in a variety of low-carbon technologies to recoup between 20% and 30% of their project capital costs as a refundable tax credit. When the enabling legislation for this investment tax credit is passed, it will rapidly accelerate the deployment across Canada of such technologies as battery energy storage systems, wind, and solar by strengthening the economics of renewable energy projects and attracting capital to the sector. This is about acceleration, international competitiveness and keeping electricity affordable for Canadian ratepayers.

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