Thank you very much, Mr. Chair.

I'm the president and CEO of Electricity Canada. We were previously known as the Canadian Electricity Association. We are the national voice of Canada's electricity sector. Our members are the companies that produce, transport and distribute electricity in all provinces and territories.

Our industry impacts all social, environmental and economic facets of life. Whether it is keeping the lights on, driving down emissions in other sectors or powering one of the largest economies in the world, Canadian electricity is foundational to it all.

Since 2005, our sector has cut emissions by more than half, making Canada's electricity grid over 84% non-emitting—among the cleanest in the world. We will continue to see emissions reductions as our members adopt and integrate new technologies.

Canada, like elsewhere in the world, is experiencing a rapid increase in electricity demand. This is driven by several factors, including the rise of new technologies like electric vehicles and artificial intelligence, as well as broader efforts to decarbonize the economy. We expect demand to double or triple by 2050. To meet this demand, we'll have to expand the system at a pace we haven't seen in decades. This must be done in a country with multiple electricity grids made up of different resource mixes, market structures and regulatory environments. Because of this regional variance, there will be no silver-bullet technology or one-size-fits-all approach to growth.

The investment tax credit regime is foundational to promoting clean energy competitiveness while supporting rate affordability. The indigenous loan guarantees and the SREP programs will help address important gaps.

Nonetheless, our industry faces significant challenges. Doubling or tripling the size of the grid while reducing emissions too quickly may jeopardize affordability and reliability. We must ensure that an emphasis on reducing further emissions faster does not compromise our ability to maintain the integrity of the electricity system in each region. We must also remain competitive in the global marketplace. Although the CCUS and clean technology ITCs are close, we aren't there yet. Meanwhile, the U.S. has been seeing record clean energy investments since the implementation of the Inflation Reduction Act. We need investment certainty if Canada is to keep pace. Finally, we need to build faster. Current permitting and approval timelines do not reflect the urgency needed to meet demand.

To address these challenges and support an affordable, reliable and clean industry, we have three key recommendations.

First, federal regulations like the CERs must be designed to ensure that affordability and reliability can be maintained. Each province's starting point is different, so it's important that national ambitions don't unintentionally leave provinces behind. Besides, as I said at the beginning, the electricity system is going to grow substantially in the coming decades. It's important that the system remain as flexible as possible so that we can meet this growing demand no matter what. The technologies that are meant to help us get there have yet to arrive in Canada at the scale that will be required. This makes it difficult to be certain on timelines for the phase-in of reliable replacement power.

Second, to support bringing these technologies to market, the federal government should continue investing in the system. At the same time, more is needed to ensure that communities and households are prepared to receive and manage the massive increase in load. Intraprovincial transmission and distribution will be crucial to supporting the growth of electric vehicles, demand-side efficiency and the connection of rural communities to clean electricity.

Finally, our federal regulatory environment needs to be adapted to ensure that these timelines and targets can be achieved. Work is needed to reduce duplication and promote clarity, transparency and accountability within federal processes.

To conclude, I want to stress that significant growth in demand will come regardless of our climate objectives. As an industry, we must be ready to meet this growth and to build for the future.

Thank you for the opportunity to speak to you today.

We have provided a detailed submission for the committee's consideration.

Thank you, Mr. Chair.