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ARTICLE · 04 AUGUST 2025

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Powering Innovation: Updates On New And Clean Technology Interconnection Issues In Alberta And Ontario

Cassels
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Across Canada, and globally, electrification, data centres, and clean technology such as direct air carbon capture are driving massive increases in electricity demand and interest...

CanadaEnergy and Natural Resources
Jeremy Barretto
Jeremy Barretto
Matt Hammer
Matt Hammer
Allison Sebastian
Allison Sebastian
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Across Canada, and globally, electrification, data centres, and clean technology such as direct air carbon capture are driving massive increases in electricity demand and interest in innovative supply arrangements, forcing regulators to respond. We have previously described some of these challenges in relation to data centres.1

Across all sectors, surging demand, particularly for clean power, is straining electricity grids, potentially exceeding their capacities, and also raising questions as to what supply arrangements are allowed within current regulatory frameworks. Issues with interconnection, transmission capacity, and power supply are national and international concerns. In June 2025, in Ontario and Alberta, there were four representative developments in these areas. Regulators and governments in these provinces placed limitations on data centre access to power and changed policies on self-generation and virtual procurement of renewable energy:

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