The economic case for an electrified Canada

Powering Canada’s Growth

Canada can unlock trillions in growth and millions of jobs by doubling its electricity supply and putting more clean power to work across the economy -- if the grid buildout comes with the investment and workforce to match.

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$3.1T
added to Canada’s economy, 2026–2050
vs. business as usual
1.6M
more jobs in 2050
than business as usual
$5 : $1
in economic benefits for every dollar invested in the power sector
5x return

In brief

Three things to know

Canada’s electricity advantage.
Reliable, affordable and clean electricity is one of Canada’s clearest competitive advantages. We can protect that edge by preparing for electricity demand that could at least double in the coming decades.
An economy-wide opportunity.
The opportunity extends far beyond the electricity sector. As businesses invest, modernize and electrify, they support new jobs, higher incomes and growth across the country.
The winning recipe.
Success hinges on getting several things right at once. All levels of government must team up to build clean power facilities and grid improvements ahead of demand, accelerate electrification, attract investment and grow the workforce.

About the modelling

Modelling the economics of doubling Canada’s electricity supply

In May 2026, the federal government announced Powering Canada Strong, a national electricity strategy that commits the nation to at least doubling its electricity supply by 2050 while accelerating electrification across the economy.

To understand the implications of such a plan, New Economy Canada and the Canadian Chamber of Commerce worked with the Open Insights initiative — a consortium led by University of Victoria researchers — to model its potential macroeconomic impacts. The results point to significant economic gains.

Learn more about the methodology and assumptions

The path to affordability is electrification; the path to competitiveness is electrification; the path to net zero is electrification.

Prime Minister Mark Carney National Electricity Strategy announcement, May 2026

Finding 1

5x return from an electrified economy

Investing in electricity and electrification can create a cycle of growth here at home. It helps businesses to grow, creates jobs, raises household incomes and gives Canadian families more money to spend in their communities.

Compared with a business-as-usual future based on current policies and measures, the electrified-economy scenario could add an additional $3.1 trillion to Canada’s economy cumulatively by 2050, create an additional 1.6 million jobs in 2050, and deliver $5 in economic benefits for every dollar invested in the power sector.

$3.1T
in cumulative economic growth by 2050
electrified economy vs. business as usual
$5 : $1
in economic benefits for every dollar invested in the power sector
5x return

Growth unlocked

$3.1T added to Canada’s economy, 2026–2050

Jobs unlocked

+1.6M more jobs in 2050 · avg. +975k a year, 2026–2050

Growth unlocked Jobs unlocked

2026: $38.9B 2026: +280,500 jobs
2027: $52.9B 2027: +330,750 jobs
2028: $60.9B 2028: +394,250 jobs
2029: $47.4B 2029: +432,000 jobs
2030: $54.8B 2030: +442,750 jobs
2031: $67.8B 2031: +551,250 jobs
2032: $77.8B 2032: +576,500 jobs
2033: $86.9B 2033: +566,750 jobs
2034: $109.1B 2034: +660,500 jobs
2035: $106.2B 2035: +838,000 jobs
2036: $96.3B 2036: +873,750 jobs
2037: $121.8B 2037: +867,250 jobs
2038: $132.8B 2038: +966,000 jobs
2039: $149.0B 2039: +1,106,500 jobs
2040: $184.4B 2040: +1,308,750 jobs
2041: $162.4B 2041: +1,339,000 jobs
2042: $142.2B 2042: +1,327,750 jobs
2043: $159.9B 2043: +1,332,750 jobs
2044: $174.4B 2044: +1,328,000 jobs
2045: $180.5B 2045: +1,340,250 jobs
2046: $197.8B 2046: +1,423,250 jobs
2047: $176.3B 2047: +1,460,000 jobs
2048: $160.2B 2048: +1,470,250 jobs
2049: $192.2B 2049: +1,547,000 jobs
2050: $201.9B 2050: +1,606,250 jobs

Source: Open Insights initiative at the University of Victoria, modelling for New Economy Canada and the Canadian Chamber of Commerce, 2026. Difference between electrified-economy and business-as-usual economic output, $ billions per year, real 2022 CAD. Methodology & assumptions

Source: Open Insights initiative at the University of Victoria, modelling for New Economy Canada and the Canadian Chamber of Commerce, 2026. Difference between electrified-economy and business-as-usual total jobs, per year, 2026–2050. Methodology & assumptions

Finding 2

Growth reaches across the economy

The benefits of an electrified economy would extend well beyond the electricity sector. Construction and power would experience the largest relative gains as Canada expands its electricity system, but the biggest overall gains occur in the service sector, as greater economic activity raises employment and household wealth.

1.6M
more jobs in 2050
electrified economy vs. business as usual

Economic output unlocked Relative growth Jobs unlocked

Circle area = economic output unlocked, 2026–2050
Circle area = % growth vs. business as usual
Circle area = jobs unlocked in 2050

Selected sector

Power (electricity, gas, steam)

Includes the generation, storage, control, distribution, trade and brokerage of electric power or gaseous fuels for energy supply, and the operation of electricity and gas utilities and heating / cooling networks.

Economic output unlocked (absolute): +$246 billion
Economic output unlocked (relative): +17.4% vs. business as usual
Jobs unlocked (absolute): +100,250 in 2050
Jobs unlocked (relative): +50.0% vs. business as usual, 2050
Sector size (cumulative): $1.7 trillion (2026–2050)

Tap or click any circle to pin it here.
Keyboard: Tab through sectors.

Economic output and jobs unlocked by sector, electrified economy vs. business as usual
Sector	Economic output unlocked, 2026–⁠2050	Output growth vs. business as usual	Jobs unlocked, 2050	Jobs growth vs. business as usual	Sector size, 2026–⁠2050
Services	+$1.2T	+3.8%	+866k	+5.5%	$33.5T
Construction	+$458B	+8.0%	+203k	+8.2%	$6.2T
Property (real estate)	+$444B	+4.8%	+20k	+3.9%	$9.6T
Industry & manufacturing	+$486B	+6.8%	+247k	+10.2%	$7.6T
Retail & wholesale trade	+$394B	+4.8%	+74k	+5.7%	$8.6T
Power (electricity, gas, steam)	+$246B	+17.4%	+100k	+50.0%	$1.7T
Transport	+$114B	+3.5%	+82k	+5.4%	$3.3T
Mining (metal ores & support)	+$74B	+4.0%	+8.5k	+2.8%	$1.9T
Agriculture	+$73B	+5.0%	+42k	+7.5%	$1.5T
Water & waste	+$10B	+4.1%	+4.3k	+4.7%	$263B
Fossil fuel energy	−$381B	−6.4%	−40k	−17.2%	$5.6T

Source: Open Insights initiative at the University of Victoria, 2026. Circle area = cumulative economic output unlocked 2026–2050 in real 2022 CAD (default view), % growth vs. business as usual, or jobs unlocked in 2050. Methodology & assumptions

Expanding Canada’s electricity system is one of the biggest infrastructure opportunities of our generation. It will harness Canadian engineering, Canadian supply chains and thousands of skilled trades workers, and our industry is ready to build it.

Prabh K. Banga, Vice-President, Sustainability Aecon

Throughout Canada, Siemens Energy equipment is generating power, strengthening the grid and decarbonizing industrial processes. Our collective success at meeting growing energy demand will encourage more companies to grow here, unlock new investment and further economic opportunities for our communities.

Arne Wohlschlegel, Managing Director Siemens Energy Canada

Our Skyview 2 Battery Energy Storage Project has attracted more than half a billion dollars in financing while creating opportunities for businesses, workers, and Indigenous partners. We look forward to replicating these successes with future projects.

Jennifer Tuck, Vice President, Government Affairs and Communications Potentia Renewables

The transition to a cleaner, more electrified economy depends on a reliable supply of critical minerals. Investments in transmission infrastructure can help unlock that opportunity in Northwest BC, supporting new mining development, jobs and long-term economic growth.

Brock Gill, Senior Vice President, North American Operations Teck Resources

Canada’s growing electricity needs represent a generational opportunity to shape the country’s economic future. Innergex is acting on that opportunity through more than $8 billion in renewable energy investments, creating long-term value for Indigenous and local communities and across supply chains.

Jean Trudel, President and CEO Innergex

By developing and deploying long-duration energy storage solutions here at home, Invinity hopes to contribute to a more resilient grid, lowering electricity bills for Canadians, and manufacturing clean energy solutions to export these benefits to the world.

Matt Harper, President Invinity Energy Systems

As electrification accelerates, a stronger electricity system can help unlock the next phase of growth for Canada’s battery sector by supporting advanced manufacturing, attracting investment and strengthening the skilled workforce needed to build a competitive battery ecosystem.

Joel Karlsberg, Chief Procurement Officer PowerCo Canada

Finding 3

The grid creates the opportunity. Economic capacity determines the return.

To realize this opportunity, Canada must increase its economic capacity alongside its electricity capacity.

That means pairing grid expansion with policies that mobilize new investment, accelerate business and household electrification, improve productivity, develop Canadian supply chains and build the workforce required across the economy.

Without measures to attract additional capital and expand the workforce, building the grid will compete with other industries for Canada’s existing investment and labour. That could constrain businesses’ ability to modernize, electrify and grow — leaving economic benefits on the table.

Realizing the full economic benefits of grid expansion requires complementary measures to grow the workforce and attract new capital investment.

Recommendations

Build the grid -- and the economy around it

Realizing the economic benefits of an electrified economy starts with building the electricity system needed to doubly supply -- affordably and on time -- alongside equally ambitious efforts to double electrification and energy efficiency. Four actions can help to do so:

Sustain political commitment and public investment

Doubling Canada’s electricity supply is a generational project that will require a sustained commitment across jurisdictions and political cycles. First Ministers should keep electricity and electrification high on their shared economic agenda, with clear responsibilities and regular progress reporting.

Canada should explore a legislated financial framework that clarifies federal, provincial, and territorial roles and provides greater certainty around long-term public investment. Governments, utilities, Indigenous nations, and investors will need to plan and build ahead of demand; such a framework would help reduce the associated risk. One estimate puts the federal contribution at approximately $5 billion annually.

Mobilize capital at scale

Public funding alone cannot finance the full build. Utilities, ratepayers, Indigenous nations, pension funds, and private companies will each play important roles.

Governments should ensure investment tax credits, public-finance institutions, and broader business-investment measures work together to attract capital, reduce financing costs and maintain affordability. The federal government could establish its recent Investment Summit as an annual forum to profile opportunities and secure new investment.

Build the workforce alongside the grid

Canada needs more engineers, skilled tradespeople, technicians, and operators to build and maintain a much larger electricity system — and to support the industrial and economic development the new capacity can unlock.

Governments, employers, labour organizations, educational institutions, and Indigenous partners should expand training and improve labour mobility. The federal government’s $6-billion Team Canada Strong initiative and the industry-led Energy & Electricity Workforce Alliance represent important steps.

Strengthen domestic supply chains

Grid expansion and electrification will require enormous quantities of materials, technologies, and equipment. Expanding Canadian production of these goods can capture more domestic economic benefits while opening new export opportunities as trading partners pursue similar electricity and electrification goals. Where Canadian supply is unavailable or uncompetitive, governments should work with allies to secure stable, reliable sources of the materials, technologies, and equipment the transition requires.

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