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IMPACTS OF CARBON MANAGEMENT POLICIES ON CANADIAN ELECTRICITY PRICES

Impacts of Carbon Management Policies on Canadian Electricity Prices

Published On: June 20, 2018

Study No. 171

In Canada, the nature of carbon management policy instruments and their stringency on electricity systems varies by jurisdiction. These include direct pricing carbon emissions (i.e. carbon tax, carbon cap and trade systems), setting maximum emissions levels for power generating units, and requiring utilities to carry a minimum amount of zero emissive generation assets (i.e. renewable energy targets). These policies have a direct effect on the cost of generation and transmission in Canada and, consequently, on electricity rates paid by residential, commercial and industrial customers.

CERI's study, Impacts of Carbon Management Policies on Canadian Electricity Prices, provides insights into the impacts of carbon management policies on provincial electricity sectors in Canada. The overview will:

1. Provide an up-to-date review of carbon management policies that have been or are expected to be implemented from 2018-2030, focusing specifically on their impacts on the electric power sector

2. Identify industries with greatest impact due to increased electricity rates

3. Assess direct/indirect effects on Canadian households due to increased electricity rates

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