Thursday, June 11, 2026

Why Canada should think bigger on solar

Dr. Tim Sandle
DIGITAL JOURNAL
June 8, 2026
Bank of solar power panels. Image © Tim Sandle

On a windswept plain in southern Alberta, a field of mirrors now tracks the sun with quiet precision. Each panel tilts in unison, converting photons into electrons, sunlight into electricity. It is a scene more commonly associated with California or Spain than Canada—and yet it may offer a glimpse of the country’s energy future.

A growing number of researchers argue that Canada has been thinking too small about solar power. According to a recent analysis from Simon Fraser University’s Clean Energy Research Group, the country should pivot away from its current patchwork of rooftop installations and instead invest heavily in utility-scale solar mega-projects (vast ground-mounted arrays capable of feeding power directly into the grid).


The case is not that rooftop solar is unhelpful. It is that it may be insufficient (both technically and politically) if Canada is serious about decarbonizing its energy system.

A solar laggard in a sunny world?

Globally, solar power has transformed from a niche technology into one of the fastest-growing sources of electricity. Costs have plummeted, with panel installation prices falling by roughly 90 per cent over the past decade, driven by manufacturing scale and technological advances. Yet Canada has largely sat on the sidelines. Solar accounts for around 4 per cent of global electricity generation, but just 0.5 per cent in Canada, according to the SFU analysis.

That disparity is striking, particularly for a country with vast land area and significant solar potential in regions such as Alberta, Saskatchewan and the interior of British Columbia. Even today, solar contributes only about 1 per cent of Canada’s electricity mix, dwarfed by hydropower, which dominates the system.

In part, this reflects geography: Canada’s long winters and variable sunlight are often cited as barriers. But the deeper explanation lies in policy. Solar deployment in Canada has largely been shaped by incentives for small-scale, decentralized systems in the form of rooftop panels on homes, warehouses and office buildings.

These schemes offer a political advantage: they are visible, popular and relatively easy to implement. Homeowners receive subsidies or net-metering credits; governments can point to individual participation in the energy transition. But, according to the SFU team, this approach has limitations that are becoming increasingly difficult to ignore.

Utility-scale solar, the researchers contend, offers a fundamentally different proposition. Rather than distributing thousands of small systems across rooftops, it concentrates capacity into large installations—often hundreds of megawatts—linked directly to transmission infrastructure. The economics are compelling. On average, utility-scale solar is around 64 per cent cheaper than residential systems and roughly 50 per cent cheaper than commercial installations, largely because of economies of scale, lower labour costs and simplified permitting.

This is not a uniquely Canadian pattern. Globally, large solar farms now rank among the cheapest sources of new electricity, frequently undercutting fossil fuels on a levelised-cost basis.

There is also a systems-level argument. Distributed solar can fragment electricity networks, introducing variability at thousands of points and requiring complex balancing measures. Large-scale solar, by contrast, can be integrated in a more controlled manner, particularly when paired with battery storage. Plus there is equity. Rooftop solar tends to favour households and businesses that can afford the upfront investment or have access to favourable financing. Utility-scale projects spread costs across the grid, potentially lowering prices for all users rather than privileging early adopters.

Why hesitate?

If the case for large solar farms is so strong, why has Canada not embraced them more fully? Part of the answer lies in familiar obstacles: high upfront capital costs, regulatory complexity and political resistance to large infrastructure projects. Solar farms require space—sometimes thousands of acres—and can trigger local opposition over land use and visual impact.

Here the researchers suggest the concerns may be overstated. The total land footprint required for solar to make a substantial contribution to Canada’s electricity supply is far smaller than many assume, particularly when compared with the land used for agriculture, forestry or fossil fuel extraction. There are also emerging solutions. “Agrivoltaics”, which refers to combining solar panels with crops or grazing land, can allow dual use of land. Projects in British Columbia, for example, are exploring ways to integrate solar arrays into agricultural systems, capturing water and improving soil conditions at the same time.


Agrivoltaics is the dual use of land for solar energy production and agricultural activities, enabling simultaneous electricity generation and farming.

Some researchers suggest that using public land could further ease tensions, reducing the “not in my backyard” effect while enabling strategic siting in high-irradiance regions. Canada would not be starting from scratch. Around the world, utility-scale solar has already proven its viability.

In California, the Solar Star project spans roughly 13 kilometres and generates 579 megawatts of electricity, enough to power hundreds of thousands of homes. Yet in Arizona, the Mesquite Solar complex began as a $600 million, 150 MW installation backed by a federal loan guarantee; it has since expanded into a multi-phase project exceeding 500 MW, illustrating how public financing can catalyse large-scale deployment. Such examples highlight a crucial insight: utility-scale solar often requires strong government support in its early stages, but can become economically self-sustaining once supply chains, financing models and regulatory frameworks mature.

A decentralized policy for a centralized grid


Canada relies heavily on centralized infrastructure. Its electricity system, which is dominated by large hydroelectric stations and nuclear plants, was built around big, capital-intensive projects. Yet when it comes to solar, policy has tended in the opposite direction. The result is a fragmented landscape: more than 100,000 small installations across the country, alongside a relatively modest number of large solar farms.

This fragmentation is reinforced by governance. Electricity regulation in Canada is largely provincial, meaning there is no single national framework for grid interconnection or renewable deployment (Canada lacks a unified national electricity market). Each province controls its own grid, pricing mechanisms, and approval processes). Developers must navigate a patchwork of rules, timelines and incentives that vary widely between jurisdictions.

The report calls for a more coordinated approach, including reforms to grid interconnection, often cited as a bottleneck for new generation projects, and stronger federal leadership to align provincial strategies. This aligns with broader trends in Canadian energy policy. The federal government’s Clean Electricity Regulations, finalised in 2024, aim to drive a transition towards a net-zero electricity system by 2035, requiring substantial investment in new generation capacity. Meeting that demand will likely require a mix of technologies. But solar, the researchers argue, could play a much larger role than it currently does.

None of this suggests that rooftop solar is redundant. Distributed systems can enhance resilience, reduce transmission losses and empower consumers to generate their own energy. Different scales of deployment each have a role to play, yet from an efficiency-of-capital perspective, he argues, utility-scale projects should be prioritised to accelerate the transition.

This is becoming especially true as electricity demand rises. Electrification of transport, heating and industry is expected to push consumption significantly higher in the coming decades, placing pressure on existing generation capacity. Where incremental additions of rooftop panels may struggle to keep pace. Large-scale projects, by contrast, can deliver substantial capacity quickly—provided the policy environment allows it.

There is a deeper shift implied here. For decades, Canada has viewed solar as a marginal technology—useful at the edges, but not central to the system. Hydropower, with its vast dams and reservoirs, has dominated the narrative. However, climate change is already challenging that model. Droughts and shifting precipitation patterns have begun to affect hydroelectric output in some regions, highlighting the need for greater diversification. A handful of rooftops may signal progress. yet if Canada’s energy transition is to gather real momentum, the future may lie in landscapes filled, horizon to horizon, with light.
Canada’s ancient rocks may hold a new source of clean energy

Dr. Tim Sandle
DIGITAL JOURNAL
June 8, 2026  

Panorama of typical Canadian Shield geography in the Flin Flon, Manitoba, region. 
Image by Green slash, CC BY-SA 3.0

Deep beneath northern Ontario, in some of the oldest rocks on Earth, geochemists have identified something that could reshape the future of hydrogen: a steady, measurable release of naturally occurring hydrogen gas from the Canadian Shield. The finding, reported by researchers from the University of Toronto and the University of Ottawa, offers some of the clearest evidence yet that Earth’s crust may contain an overlooked energy resource (so-called white hydrogen) that is continuously generated without the need for fossil-fuel reforming or electricity-intensive electrolysis.

The study, published in the Proceedings of the National Academy of Sciences, is notable not simply because hydrogen was detected, but because it was measured directly and tracked over long timescales in an active mine near Timmins, Ontario.

According to the researchers, boreholes drilled into ancient crystalline rocks released an average of 0.008 tonnes of hydrogen per year, or roughly 8 kilograms annually, and the flow appeared capable of continuing for a decade or longer. When extrapolated across the mine’s nearly 15,000 boreholes, the estimated output exceeded 140 tonnes of hydrogen per year, representing an energy yield of about 4.7 million kilowatt-hours annually. This is enough, the authors estimate, to supply the yearly energy needs of more than 400 homes.


White hydrogen, also known as geologic hydrogen or gold hydrogen, is a naturally occurring form of hydrogen that could play a significant role in the clean energy sector. It is produced through continuous geochemical reactions in ancient rocks, offering a cost-effective and low-carbon alternative to industrially produced hydrogen.

What makes the discovery especially important is that it shifts natural hydrogen from the realm of geochemical curiosity into the early stages of resource science. Hydrogen has long been known to form underground through water–rock reactions, especially in iron-rich and ultramafic rocks, but much of the discussion around natural hydrogen has remained speculative.

Here, the Canadian work provides field-based evidence that old rocks can accumulate and release hydrogen over long periods, and that these releases are not ephemeral anomalies but sustained fluxes that may, under the right conditions, be exploitable. In practical terms, this moves white hydrogen closer to the categories already familiar in energy policy—green, blue, and grey hydrogen—while also raising the prospect of a source that may require neither hydrocarbon feedstock nor massive dedicated electricity inputs.

Spanning the Canadian Shield


The geological setting is central to the story. The Canadian Shield spans much of the country and comprises ancient (Precambrian), mineral-rich rocks that are already economically significant because they host deposits of nickel, copper, cobalt, diamonds and other critical minerals. The researchers argue that this matters because the same geologies that support mining may also generate hydrogen, creating the possibility of co-located production and use.

If hydrogen can be harvested near mines already operating in Ontario, Quebec, Nunavut or the Northwest Territories, it could reduce the need for long transport routes, extensive storage infrastructure, or imported fossil fuels. In other words, the significance of white hydrogen may lie not only in how much exists underground, but in where it exists: adjacent to heavy industry, critical mineral extraction and some of the most energy-constrained communities in the country.

This discovery arrives at a consequential moment in Canadian energy policy. Canada’s Canadian Net-Zero Emissions Accountability Act legally commits the country to reaching net-zero greenhouse gas emissions by 2050 and sets a 2030 target of 40–45% below 2005 levels, with further milestone targets required for 2035, 2040 and 2045.

At the same time, Ottawa has made electricity decarbonization a central plank of national climate and industrial strategy. The federal government finalized its Clean Electricity Regulations in December 2024, and has framed its broader electrification plan around doubling Canada’s electricity supply by 2050 while keeping the grid clean, reliable and affordable. Canada also emphasizes that a large share of its electricity — 84%, according to federal material — already comes from low- or non-emitting sources such as hydro, nuclear, wind and solar.

Meeting government carbon targets

Hydrogen features prominently in that policy architecture. Canada’s Hydrogen Strategy, first released in 2020 and updated through a federal Progress Report in May 2024, presents low-carbon hydrogen as a complementary tool to electrification, particularly for hard-to-abate sectors such as heavy transport, steel, chemicals and fertilizer production.

The federal government says roughly 80 low-carbon hydrogen production projects have been announced across the country, representing more than $100 billion in potential investment, and has supported the sector through measures including the Clean Hydrogen Investment Tax Credit, which applies to eligible projects through 2034.

The strategy is not confined to domestic use: Ottawa also sees hydrogen as an export opportunity, linking Canadian supply to partners in Europe and Asia.

Against that backdrop, white hydrogen could become strategically important because it may fit policy goals without fitting existing categories. Canada’s current framework is geared toward hydrogen made from electrolysis, natural gas with carbon capture, and other engineered pathways.

A naturally occurring source, if commercially recoverable, would force policymakers to think differently about resource classification, incentives, environmental regulation and Indigenous partnership models. It might not displace green or blue hydrogen, but it could diversify supply and lower costs in regional niches—especially around mining corridors and off-grid regions.

The federal government already identifies hydrogen as useful for industry, transport and energy security, while separate programmes aimed at Indigenous, rural and remote communities seek to reduce diesel use in places that remain outside the main electricity grid. For many such communities, energy is expensive because fuel must be transported long distances; a local geological hydrogen source, if available and responsibly developed, could be transformative.

Yet scientific promise is not the same as commercial readiness. Several critical questions remain unresolved.

Are the Timmins measurements representative of a broad class of Canadian rocks, or are they highly site-specific? Can hydrogen accumulate in sufficiently large, recoverable reservoirs? How should such systems be explored without creating unrealistic expectations analogous to past extractive booms? And even if production is technically feasible, would the gas be cheap enough to compete with electrolysis in regions rich in hydroelectric power, or with blue hydrogen in provinces where natural gas and carbon-capture infrastructure are already established?

The history of energy transitions suggests that geology alone does not determine success; infrastructure, regulation, capital and social licence are equally decisive.
Commercial importance and meeting unserved communities

There is also a broader strategic implication. Canada has increasingly presented itself as a supplier of the materials and energy systems needed for decarbonization: critical minerals for batteries and electronics, clean electricity for manufacturing, and low-carbon hydrogen for domestic use and export.

White hydrogen could strengthen that narrative by adding a home-grown energy resource that is both geologically distinctive and potentially competitive in mining regions where fuel demand is concentrated. But it could also challenge policymakers to avoid treating hydrogen as a single solution to every energy problem.

In many applications, direct electrification will remain more efficient. The most likely path forward is therefore selective rather than universal: white hydrogen could prove most valuable where electrification is difficult, logistics are costly, and geological conditions are favourable.

For now, the significance of the Canadian discovery lies in its realism. It does not claim an instant hydrogen revolution, nor does it suggest that ancient rocks will replace power grids, pipelines or renewables. What it does show is that the subsurface may contain a steady source of low-carbon hydrogen that has been largely ignored in energy planning.

In a country already pursuing net zero, clean electricity expansion and a national hydrogen economy, that is more than a geological curiosity. It is an invitation to rethink what counts as an energy resource—and where the next generation of clean fuel might come from.

Canada, Türkiye set to restart discussions on free-trade agreement


Published:

International Trade Minister Maninder Sidhu rises during question period on Parliament Hill in Ottawa on Friday, April 24, 2026. THE CANADIAN PRESS/Adrian Wyld

OTTAWA — Canada and Türkiye have agreed to restart initial discussions on a free-trade agreement.

Global Affairs Canada said in a news release the decision reflects both countries’ ambition to unlock the full potential of their commercial partnership.

“This will unlock real opportunities for Canadian industry in sectors like clean energy, aerospace and mining,” International Trade Minister Maninder Sidhu told The Canadian Press, adding Türkiye is “very interested” in Canada Deuterium Uranium (CANDU) nuclear reactor technology.

“We’re taking concrete steps to deepen a relationship that benefits both economies.”

Sidhu and his Turkish counterpart also have agreed to explore opportunities in renewable energy, said the news release.

“Our partnership with (Türkiye), as a NATO ally and strategic partner in the crossroads of Europe and Asia, has even greater potential and I am ready to advance it,” said Sidhu.

While Canada and Türkiye held talks on a free-trade agreement in 2010 and 2013, the federal government’s website says there was not sufficient common ground to pursue negotiations at the time.

Türkiye is hosting the 2026 NATO summit next month and the 2026 United Nations Climate Change Conference in the fall.

Prime Minister Mark Carney’s government has boasted of signing 20 strategic trade and defence agreements around the world over the past year.

Sidhu has said Canada is looking to sign three major trade deals before the end of the year — with Mercosur, the Association of Southeast Asian Nations and India.

---

Catherine Morrison, The Canadian Press

This report by The Canadian Press was first published June 10, 2026.




India considering Canada as potential crude oil supplier, envoy says


Published:

A dump truck works near the Syncrude oil sands extraction facility near the city of Fort McMurray, Alberta on Sunday June 1, 2014. (THE CANADIAN PRESS/Jason Franson)

India is considering Canada as a potential crude oil supplier, High Commissioner Dinesh Patnaik said on Wednesday at the Global Energy Show in Calgary, Alberta, adding that the country’s newer refineries are designed to process heavy crude, making Canadian grades a viable option.

Patnaik said officials from the two countries are meeting regularly to discuss opportunities for sourcing Canadian energy.

He said, however, that global investors remain cautious about Canada’s regulatory and project approval processes, which could affect the pace of energy cooperation.

Separately, Abu Dhabi National Oil Company said on Tuesday it is exploring opportunities in Canada’s upstream and liquefied natural gas sectors through its international arm XRG.

Canada is the world’s fourth-largest crude oil producer and fifth-largest natural gas producer.

Reporting by Amanda Stephenson in Calgary and Katha Kalia in Bengaluru; Editing by Tasim Zahid

‘Recession is not the word I would use’: Bank of Canada governor

ByRachel Aiello
and
Spencer Van Dyk

Updated: June 10, 2026 


Bank of Canada Governor Tiff Macklem. (The Canadian Press)

Amid weeks of debate in the House of Commons on Canada slipping into a technical recession, Bank of Canada governor Tiff Macklem says that based on the data he’s seen to date, this country’s economy is weak, but “it is not clearly in recession.”

“There’s been a lot of volatility, month to month, quarter to quarter, but when you look through the bumps, I mean the economy hasn’t really grown in the last year, but it hasn’t shrunk either,” Macklem said Wednesday following his interest rate announcement, when asked if he believes Canada is in a recession.

Canada’s economy saw a contraction of GDP on an annualized basis in the last two quarters — by 0.2 per cent in the end of 2025 and by 0.1 per cent in the beginning of 2026 — meeting the definition of a technical recession.Is Canada’s economy in trouble? What the latest GDP and job numbers mean for you

Macklem noted, however, that while economists typically define a recession as “a significant broad-based decline in economic activity that lasts for more than one quarter,” what is happening in Canada currently doesn’t meet that threshold, in his estimation.

“The first quarter was just barely negative after the decline in the fourth quarter last year,” he said. “If you look across industries, what you see is that, in the first quarter, more than half of industries actually grew, expanded on a year-over-year basis.”

“And as I mentioned, the unemployment rate has been relatively stable in the six-and-a-half to seven per cent range,” he also said. “So far, we have not seen a significant broad-based decline in economic activity.”

Partly contributing to the GDP contraction is that while oil exports are up, other exports, such as cars and trucks, are down, with the auto sector being one of many that is heavily reliant on the United States.

Doubling down, the central banker explicitly stated that “recession is not the word (he) would use,” while noting the Bank of Canada continues to assess all factors and is “prepared to respond as needed.”

Bank of Canada senior deputy governor Carolyn Rogers has also warned not to put too much weight on the technical recession definition, but the issue has dominated debate in the House of Commons

.
Conservative leader Pierre Poilievre rises in the House of Commons in Ottawa, Tuesday, April 14, 2026. THE CANADIAN PRESS/Adrian Wyld


Issue dominating political debate


The governing Liberals have downplayed the data, pointing to a stellar jobs report Friday, as the Opposition Conservatives continue to press on the issue.House Speaker denies Poilievre’s request for emergency debate on Canada’s economy

“There’s nothing technical about coming home from work and telling your kids that you no longer have a job and that you’re going to have to sell the house because Canada has the second highest unemployment in the G7,” Conservative Leader Pierre Poilievre said in the House of Commons two weeks ago. “That is not technical, it is real. This is a full-blown Liberal recession.”


In response, Finance Minister François-Philippe Champagne pointed to the Liberals’ “generational investment in infrastructure, in housing, in productivity and innovation,” and said the federal government is supporting Canadians with affordability measures.

Despite Macklem’s declaration, Poilievre continued to criticize the government in question period Wednesday for what he’s been calling a “Liberal recession,” and seizing on the Bank of Canada governor’s use of the word “weak” to describe the economy.

“That translates into lost jobs, lost homes, and bigger lineups at food banks,” Poilievre said. “Will the prime minister stand today, reverse the Liberal policies that caused this recession?”

Energy and Natural Resources Minister Tim Hodgson, meanwhile, accused Poilievre of “cherry picking” his points by leaving out Macklem’s assessment that Canada is not in a recession.


Rachel Aiello

National Correspondent, CTV News

Spencer Van Dyk

Writer & Producer, Ottawa News Bureau, CTV News


Bank of Canada holds key rate steady in fifth consecutive decision


Published:

Bank of Canada governor Tiff Macklem doesn’t think the economy is in a recession, but he does acknowledge some recent weakness -- something other economists argue should give the central bank more leeway to keep its key interest rate steady for the rest of the year.

The central bank’s policy rate remains at 2.25 per cent Wednesday after the central bank’s fifth consecutive hold, a move that was widely expected by economists.

The Bank of Canada’s rate decision arrived after days of debate over whether the country is in a recession, triggered by a second straight economic contraction in the first quarter of the year.

Macklem said Wednesday that the economy was weaker than expected in the first quarter as U.S. trade policy and the war in Iran spur geopolitical uncertainty.

Asked whether he thought the economy was in a recession, Macklem said that label isn’t yet warranted -- echoing the chorus of economists who argue the current downturn fails to meet that bar.


“Based on the data we’ve seen to date, the economy is weak, but it is not clearly in recession,” Macklem said.

In its April forecast, the Bank of Canada called for growth of 1.5 per cent in the first quarter of the year. Macklem chalked much of that miss up to an unexpected pullback in government spending, which he said can be choppy from one quarter to the next.

While there’s been some volatility in the economy and labour market over the past year, Macklem said the wider trend is of flat growth, not a pronounced decline. More than half of Canadian industries were also growing in the first quarter of the year despite the marginal headline decline, he noted.

Recent economic data, including a strong May jobs report, signals the economy could rebound in the second quarter of the year, Macklem said.

“So far, we have not seen a significant, broad-based decline in economic activity,” he said.

“Recession is not the word I would use.”

Macklem highlighted that the upcoming review of the Canada-U.S.-Mexico agreement, or CUSMA, comes with significant risks for the economy. An outcome that sees current tariff levels ratchet up, or that sees uncertainty persist into the second half of the year, would hamper Canada’s economic recovery.

Michael Davenport, senior economist at Oxford Economics, said he believes Macklem has the right interpretation of recent data, including sharp risks around the upcoming CUSMA renewal.

“The Canadian economy is definitely a little bit weaker than we had thought, say, a couple of months ago, but we don’t think that the Canadian economy’s currently in a recession,” Davenport said.


Global oil prices -- driven higher by the Middle East conflict -- are meanwhile staying higher than first thought in the Bank of Canada’s April forecast. Opposing pressures on prices and economic growth put the central bank in a dilemma, Macklem said.

“Raising rates to dampen inflation could further slow the economy. Easing rates to support growth increases the risk that higher inflation becomes persistent,” he said.

“For now, holding the policy rate unchanged balances those risks.”

Annual inflation rose to 2.8 per cent in April, in part because of the global energy shock. The Bank of Canada now expects inflation to hold around three per cent in the coming months before easing back toward the central bank’s two per cent target.

Macklem said there has so far been “limited evidence” that higher energy prices are passing through into broader inflationary pressures.

He said the Bank of Canada will keep looking through the short-term rise in inflation tied to the oil price shock. He also reiterated the central bank will act to prevent price pressures from becoming entrenched.

Core inflation -- a group of metrics the Bank of Canada uses to track underlying price trends -- has cooled in recent months despite the rising headline rate. Macklem said the central bank “might have to take some action” if that trend were to reverse course.

Financial market odds call for the Bank of Canada to hold rates steady again at its next meeting on July 15, according to LSEG Data & Analytics. But markets are pricing in a quarter-point hike before the end of the year.

“We think that misses the mark. We think the Bank of Canada is more likely going to remain on hold for the remainder of this year,” Davenport said.

In order for the central bank to raise its policy rate this year, he argued core inflation would have to pick up steam and price pressures would have to broaden across the consumer basket. Long-term inflation expectations from businesses and consumers would also have to rise, but those have so far been grounded in the wake of the Middle East oil price shock.

“None of that, we think, is likely given the current weak macroeconomic backdrop,” Davenport said.

KPMG chief economist Ali Jaffery said in a media statement that the focus on recent economic weakness gave Macklem’s remarks a “dovish” tone -- suggestive of looser monetary policy rather than any tightening.

Risks of persistent inflation seem low in the face of a soft economy, Jaffery argued.

“Even if the economy perks up in Q2 -- which it likely will -- there is a lot of room for non-inflationary growth when an economy is coming out of a hole like this,” he said.

CIBC senior economist Andrew Grantham said in a note to clients that Wednesday’s rate decision reflects a “very patient central bank” content to wait and see how the risks play out.

He said CIBC continues to expect no change to the policy rate in 2026 as the current rate level supports a modest recovery in the economy starting later this year.

This report by The Canadian Press was first published June 10, 2026.