Navigating intermittency: how Canada is developing a reliable, resilient and secure electricity grid

John Vellone

Borden Ladner Gervais, Toronto

jvellone@blg.com

Nick Pinsent

Borden Ladner Gervais, Toronto

npinsent@blg.com

Canada is a federation with two orders of government: federal and provincial. Generally, provincial governments in Canada have authority over electricity, with some exceptions,[1] notably interprovincial or international transmission lines, where the federal government has jurisdiction.[2]

Background – the growth of intermittent energy sources

Global risks to energy stability, such as blackouts, war and conflict impacting energy supply, as well as the threat of cyberattacks, have contributed to the development of Canadian policy aimed at increasing the resiliency, reliability, and security of the electricity grid.

Bolstering energy stability is part of a global trend around energy policy. In this article, we will be following the United States Department of Energy’s 2017 Quadrennial Energy Review, which calls out the following definitions:

‘…[R]eliability is the ability of the system or its components to withstand instability, uncontrolled events, cascading failures, or unanticipated loss of system components. Resilience is the ability of a system or its components to adapt to changing conditions and withstand and rapidly recover from disruptions. Security refers specifically to the ability of a system or its components to withstand attacks (including physical and cyber incidents) on its integrity and operations.’[3]

There are many tools available to address reliability, resilience and security. Energy source diversification is a key area of focus in Canada, as it also supports the country’s goal of achieving net zero emissions by 2050.[4] As a result, wind and solar are the two fastest-growing energy sources in Canada[5], with cumulative installed wind capacity increasing from 1,846 megawatts (MW) in 2007 to 15,132 MW in 2022, while solar photovoltaic installed capacity increased from 26 MW to 6,452 MW over the same time period.[6]

However, while these are non-emitting and diversified sources of energy, wind and solar are variable and can be unpredictable sources of power generation, leading to diminished reliability. Energy Regulation Quarterly, a Canadian forum for discussing energy regulatory topics, has previously highlighted how ‘the integration of large amounts of intermittent renewable energy sources, particularly wind and solar, into the electricity grid poses challenges primarily due to their variability and unpredictability.’[7]

Federal priorities

In recent decades, the Canadian federal government has developed and implemented several tools to enhance grid reliability, resiliency and security. These policies and legislation have led to several successful initiatives, including the incorporation of reliability standards[8] and the National Electric Grid Security and Resilience Action Plan.[9]

The 2003 North American blackout, the world’s second largest, affected over 50 million people. It led to Canada and the US collaborating to implement mandatory reliability standards that encompass a range of items, including transmission operations, cyber and physical security, and emergency preparedness.[10] Soon thereafter, in 2006, the US certified the North American Electric Reliability Corporation (NERC) as its electric reliability organisation (ERO).[11]

As electricity is governed provincially in Canada, the recognition of NERC and its regional affiliates as the ERO, the adoption of any of NERC’s reliability standards, or monitoring/enforcing any standards put in place is completed at a provincial level.[12] Every Canadian jurisdiction that applies mandatory reliability standards has established processes to review and adopt NERC standards. In nearly all provinces connected to the North American Bulk Electric System, these standards are already mandatory and enforceable or are moving toward that status. As a result, NERC has memoranda of understanding with the Canadian Energy Regulator and eight of Canada’s ten provinces.[13]

However, NERC is not the only policy tool Canada has enabled to safeguard the grid. Canada, together with the US, jointly developed the National Electric Grid Security and Resilience Action Plan (‘the Action Plan’) in 2016.[14] The Action Plan outlines three main goals:

1. protect today’s electric grid and enhance preparedness;

2. manage contingencies and enhance response and recovery efforts; and

3. build a more secure and resilient future grid.[15]

The third goal emphasises the need to incorporate new technologies into the grid to increase flexibility, resilience and energy security.[16]

Most Canadian provinces are already working with NERC to monitor and maintain grid reliability. Many of these jurisdictions, notably Ontario, British Columbia and Quebec, are advancing measures to diversify and de-risk their grids as the use of intermittent energy resources increases.

Provincial action

Ontario

The Province of Ontario is Canada’s largest, with a population of more than 16 million people. Ontario has historically promoted reliability through its recognition of NERC as well as the Northeast Power Coordinating Council (NPCC) as the standards authorities.[17]

In 2025, the province released its Integrated Plan to Power the Strongest Economy in the G7,[18] aimed at meeting growing electricity demand, addressing affordability, meeting clean energy goals, coordinating energy streams and bolstering energy security.[19] This plan also addresses grid modernisation and flexibility.[20]

Ontario is pursuing energy storage as a critical tool in bolstering energy security. As part of its first long-term energy procurement launched in 2022, known as the LT1, Ontario contracted more than 1,700 MW of storage capacity.[21] The province continues to increase its energy storage capacity to enable the incorporation of intermittent resources into its electricity grid, such as the Oneida Energy Storage Project, a 250 MW project that commenced commercial operations in 2025.

Diversifying energy resources is another feature of the province’s resiliency strategy, with Ontario emphasising the role of natural gas generation alongside new energy storage technologies.[22]

British Columbia

British Columbia (BC), Canada’s westernmost province with a population of around 5.7 million, uses reliability standards developed by NERC or the Western Electricity Coordinating Council.[23] Supplementing its desire to improve its grid, BC has developed its own Clean Energy Strategy, which emphasises developing a clean-energy economy to create job opportunities, stimulate economic growth, and strengthen the resilience, reliability and security of the energy system.[24]

The Clean Energy Strategy outlines a plan to enhance the resilience of BC’s electricity system, drive innovation, and expand the use of clean energy technology, particularly in the face of climate change and severe weather events. The plan details a variety of tools, including the expansion of intermittent energy sources, such as wind and solar, using its hydroelectric dams as a form of energy storage within its electricity grid, and installing utility-scale batteries for further energy storage.[25]

Quebec

Quebec, Canada’s second most populous province, with over 9 million people, also recognises both NERC and the NPCC as the benchmark of reliability standards.[26] Like Ontario and BC, Quebec has successfully invested in its grid in recent years to enhance reliability and resilience, achieving a 50 per cent reduction in the average length of outages as of 2024.[27]

Hydro Quebec’s Action Plan 2035 outlines a planned development of 11,000 MW of clean energy in the next decade, driven by investments totalling $200bn.[28] The strategy vision notes explicitly its focus on wind, solar and hydropower facilities in step with upgrading grid infrastructure through modernisation and the deployment of new transmission lines.[29]

The Action Plan not only outlines its investments in improving the reliability and resilience of its grid but also highlights the need to enhance grid security.

Solving the intermittent problem – potential solutions

There are various options to address the issues stemming from the growth of intermittent energy sources.

Smart grids and grid integration

The Canadian Climate Institute describes smart grids as ‘a range of technologies that can be used to enhance the flexibility of electricity systems… crucial for managing electricity demand as the clean energy transition accelerates.’[30]

Smart grids can improve the resilience and reliability of an electric grid by facilitating the use of a diverse energy mix. While energy reliability risks arise from the use of intermittent energy sources, a smart grid can assist by ramping up the use of dispatchable sources, such as natural gas or pumped hydro, or by coordinating the availability of energy storage when an intermittent source, like wind or solar, is underperforming.

Building on the concept of smart grids, this flexibility can also be achieved on a larger scale via interprovincial transmission. Canada’s electricity has historically flowed south towards the US. However, new interprovincial transmission lines that run east to west across Canada are being proposed to enhance the transmission and distribution of electricity nationwide.[31]

Energy storage

Intermittent resources can lead to a mismatch between energy supply and demand, particularly during peak periods. To mitigate the risk of blackouts and grid instability, energy storage solutions or backup generation may be necessary. Further to the above-mentioned Energy Regulatory Quarterly article, battery energy storage systems (BESS) are considered an appealing technology to address risks posed by the growing reliance on intermittent energy sources. [32] BESS allows electricity to be stored for use during periods of high demand or when intermittent resources like wind and solar are not available, similar to pumped hydro storage.[33] The Canadian federal government echoes the benefits of BESS for grid reliability.[34] Jurisdictions may also explore other options, such as pumped or compressed air storage or flywheels.

While wind and solar are important energy sources that enable Canada to move towards its clean energy goals, the wind is not always blowing and the sun is certainly not always shining. Energy storage technologies are crucial for enhancing the reliability, resilience and security of Canada’s electric grid.

Key takeaways

Canada’s reliance on intermittent energy resources is expected to continue growing in tandem with its efforts to improve the reliability, resilience and security of the country’s electric grid. While these two trajectories are somewhat at odds, the implementation of smart grid technology and energy storage solutions can mitigate the risks associated with intermittent resources while keeping pace with growing energy demand and clean energy goals.