Canada has unveiled a new clean electricity strategy aimed at doubling the country’s power grid capacity by 2050 through investments expected to exceed C$1 trillion ($729 billion), announced by Canadian Prime Minister Mark Carney.

Announced in Ottawa, the plan seeks to strengthen energy security, reduce household energy costs and meet rising electricity demand driven by industrial growth, artificial intelligence data centres and the expanding use of electric vehicles.

The Canadian Prime Minister said the strategy reflects changing global economic conditions, including trade tensions with the US, higher energy prices and climate related pressures.

Canada has also become increasingly reliant on US electricity imports, which have risen steadily since 2020, according to the Canada Energy Regulator.

The strategy proposes a major expansion of hydroelectric, nuclear, wind and solar power generation, while also allowing natural gas to play a supporting role alongside carbon capture and geothermal technologies.

To improve grid reliability and reduce dependence on cross-border electricity trade, the government plans to introduce investment tax credits to accelerate the construction of east-west electricity interties connecting regional power systems across Canada.