This piece originally appeared in National Newswatch on March 4, 2026
Canada holds a strategic advantage: among the lowest electricity costs in the OECD and one of the least emissions-intensive grids, powered largely by world-class hydro and nuclear built over generations, with rates regulated for stability. In an era defined by energy insecurity, it’s a competitive edge. The task now is to strengthen it.
Oil and LNG are globally traded commodities, and while a disruption in Middle East production and transport through the Strait of Hormuz may only limit some physical imports, the ensuing price spikes are global, meaning higher pump prices and heating bills in Canada, too. These spikes—and the inflation that follows—are driving many import-dependent countries to pivot toward energy they can produce and control themselves, including wind, solar, batteries, heat pumps and EVs.
With prices once again on the rise, the lesson is clear: energy security depends on more electricity capacity and the electrification of industry, transport and buildings. This reality raises two important questions for Canada.
First, what steps will we take to electrify and better ensure Canada’s energy security?
Prime Minister Carney is developing an electricity strategy aimed at doubling supply. Given the economics, most of what gets built will be clean, simply because it’s the cheapest option. But Canada must also increase electricity’s share of meeting the energy needs of Canadian businesses and households. Doubling electrification would further reduce exposure to global energy shocks, and if paired with stronger efficiency measures, could double Canada’s energy productivity. That means producing more economic output with less energy — the definition of modern competitiveness.
This “double-double-double” approach could catalyze billions in investment, create career opportunities across the country, boost businesses productivity, lower energy costs and bolster supply chains—from raw resources through manufacturing—and services that Canada can also export abroad.
The second question is: What new economic opportunities does this create both at home and with our trading partners?
While visiting Ottawa last week, a senior EU official told reporters that future energy trade agreements with Canada would prioritize “clean energy sources, » noting “Seventy per cent of Europe’s electricity comes from either renewables or nuclear. This is the way forward. It is simple. » And while increased global prices for LNG exports to other regions can be a revenue generator for Canada short-term, a focus on diversifying what we export is critical if we are to insulate our country from a boom-and-bust revenue cycle, the consequence of which we saw clearly in Alberta’s 2026 budget.
The clean economy is no longer emerging—it’s scaling. With $2.3 trillion invested globally in the energy transition last year alone, opportunities for a more resilient economy lie in the clean energy supply chain—from the critical minerals and processed metals to batteries and grid equipment that rapidly electrifying trade partners are looking for. A recent analysis found that Canada’s exports in clean energy supply chains grew 21 per cent faster than all other exports over the last five years, and Canada’s market share of these exports is growing. This success can be turbo-charged with industrial policy targeting those segments of the clean energy supply chain where competitive advantage has been demonstrated.
The growth in demand for these materials and products can strengthen traditional Canadian industries. For example at the Prospectors and Developers Association Conference this week, Minister Hodgson announced 30 new critical minerals partnerships that will unlock $12.1 billion in projects to “strengthen supply chains, support economic growth and reduce strategic vulnerabilities.”
Electrification can enable energy security, economic competitiveness, and industrial renewal – all at once. By working with provinces to broaden our national electricity strategy—ensuring it aims to double supply, electrification and productivity—Canada can capture domestic and export opportunities that will build lasting prosperity, security and resilience for generations to come.
Merran Smith is President of New Economy Canada.
Dan Woynillowicz is principal of Polaris Strategy + Insight and an advisor to New Economy Canada.
Moe Kabbara is Chief Executive Officer of The Transition Accelerator.