Modelling shows a $5 economic benefit for every $1 invested in the power sector and 1.6 million additional jobs in 2050
OTTAWA, ON, Sept. 29, 2026 /CNW/ -- New economic modelling finds that doubling Canada's electricity supply and putting more clean power to work across the economy could add a cumulative $3 trillion to Canada's economy by 2050, support 1.6 million additional jobs in 2050, and deliver $5 in economic benefits for every $1 invested in the power sector compared to business as usual.
The findings are published today in Powering Canada's Growth: the economic case for an electrified economy, a new report from New Economy Canada and the Canadian Chamber of Commerce, based on macroeconomic modelling by the Open Insights initiative -- a consortium led by University of Victoria researchers. The analysis compares an electrified-economy scenario with a business-as-usual future based on current policies and measures.
"Amid discussions of what an electrified economy will cost, we now have a clearer picture of what it could return -- trillions in additional economic activity and over a million jobs. This study shows what's possible when Canada builds more electricity and puts it to work across the economy. It's now up to all levels of government to come together and build on Canada's electricity advantage to attract new investment and jobs. That's how this opportunity can lead to greater prosperity for Canadian businesses, households and communities," said Ian Bruce, president of New Economy Canada.
The modelling validates the economic direction of Powering Canada Strong -- the proposed federal electricity strategy that aims to double Canada's electricity supply and accelerate electrification -- and demonstrates the significant gains in investment, employment and GDP that a coordinated push to build and use more electricity could deliver.
It also shows that electricity investment can drive growth well beyond the power sector -- but only if Canada expands its economic capacity to match.
The report identifies four priorities:
- Sustain political commitment and public investment: Keep electricity and electrification on the First Ministers' economic agenda and establish a durable framework for long-term public investment.
- Mobilize capital at scale: Align investment tax credits, public-finance institutions and wider business-investment policies to attract capital and keep financing costs -- and electricity rates -- affordable.
- Build the workforce alongside the grid: Expand training, improve labour mobility and increase productivity so Canada has the workers needed to build the electricity system and support the resulting economic growth.
- Secure the supply chain: Modernize existing supply chains, develop Canadian capacity in critical electricity and clean technologies, and strengthen trade partnerships for products Canada cannot produce competitively.
The new investments announced following this month's Canada Investment Summit are a strong start toward mobilizing the capital the country needs. At their June meeting, First Ministers also reinforced the importance of doubling Canada's electricity grid and coordinating efforts on interprovincial transmission to support future economic development and growth.
Merran Smith, executive board chair of New Economy Canada says
"We're heading in the right direction and have made a strong start. But the world is advancing quickly on electrification, and Canada needs to pick up the pace. This economic study shows us what's at stake. Now federal, provincial and municipal governments need to work together to deliver it efficiently and affordably – clarifying responsibilities and financing, and turning shared goals into actions. Finalizing Powering Canada Strong will help us do this, giving businesses and utilities the certainty to invest and helping to lock in the benefits of an electrified economy.
Bryan Detchou, Canadian Chamber of Commerce says
"Accelerating electricity infrastructure is both a nation-building and economic imperative. This report puts a clear number on the opportunity: five dollars in economic benefits for every dollar invested in power. Achieving this target will require, above all, political will, policy consistency, and collaboration across jurisdictions -- alongside sustained investment, skilled workers, and resilient supply chains. Businesses of all sizes across the country need this infrastructure to work and to grow. Countries that move decisively will undoubtedly be better positioned to attract investment and build the industries of the future. Canada has every reason to be near the front of the pack."
Dr. Madeleine McPherson, Principal Investigator, Open Insights; Associate Professor, University of Victoria says
"Energy-economy modelling can't tell decisionmakers what to do, but it can reveal the conditions that are necessary for an opportunity to be realised. This collaboration lays out the conditions needed for doubling the grid, and our team looks forward to deepening this analysis as Canada charts the path for its grid and economy."
New Economy Canada is a non-partisan initiative uniting 70+ companies, labour unions and Indigenous organizations, all committed to accelerating investment in Canada's clean economy. Our partners employ or represent over 720,000 workers. https://neweconomycanada.ca
Open Insights is a collaborative effort between SESIT at the University of Victoria, Energy Modelling Hub, the Energy & Materials Research Group at Simon Fraser University, and Macrocosm Group – each committed to building a more transparent and accessible Canadian modelling ecosystem. Open Insights always publishes all assumptions, input data (when not restricted by other organization's licensing) and model source code open source.
The Canadian Chamber of Commerce is the national voice of business, uniting more than 400 chambers of commerce and boards of trade, 115 sectoral associations, and over 200,000 businesses and organizations of all sizes across every sector of the economy and every region of Canada.
SOURCE New Economy Canada
For media inquiries: New Economy Canada, Rebecca Spring, Senior Director of Communications, 647.338.6274, [email protected]; Canadian Chamber of Commerce, Shane Mackenzie, Vice President, Media and Stakeholder Communications, 613.302.7683, [email protected]
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