GUEST SUBMISSION: Canada is at a pivotal moment in its energy transition. The federal government is preparing to release an updated National Electricity Strategy, and provinces are simultaneously revisiting their own approaches to grid planning, electrification and data centre development.

These decisions will shape how the country meets rising electricity demand for decades. Yet amid this activity, one essential element remains underdeveloped: a serious strategy for smarter demand.

Electricity demand in Canada is expected to nearly double by 2050. But the nature of that demand is changing just as quickly. Growth is no longer driven by a handful of large, predictable industrial loads. Instead, it is coming from millions of smaller, distributed, and increasingly dynamic, sources – electrified buildings, electric vehicles (EVs), data centres and prosumers who both consume and produce electricity. This shift fundamentally alters how the grid must operate.

Canada’s electricity system was not designed for a world where electricity flows in multiple directions, where distributed energy resources interact with the grid in real time, and where visibility across the system is essential for reliability. Yet this is the system we now have. And without a modernized, digitally enabled grid, Canada will struggle to meet its climate, digital and economic goals – no matter how much new supply we build.

Other jurisdictions have already recognized this. After last year’s blackout, Spain concluded that its electricity system needed to be strengthened. The country responded with a clear policy shift toward significantly higher grid investment, with utilities increasing their budgets by roughly 30 per cent. That reflects a broader global reality: grid capability must catch up with the energy transition. Canada faces the same imperative.

The Canadian approach

But the conversation here remains heavily weighted toward supply-side solutions. The new generation will be essential, but it cannot be the only answer. Long lead infrastructure takes years to plan and build, and the pace of electrification is outstripping the timelines of traditional grid expansion.

Provinces like Ontario and Quebec are already tightening data centre and grid connection policies because the system cannot keep up with demand. These are early signals of a broader challenge.

A more balanced approach is needed – one that treats demand‑side efficiency and flexibility as core pillars of Canada’s energy strategy, not afterthoughts.

Tools already in place

The good news is that the tools already exist. The EFC/Dunsky Roadmap shows that most demand‑side and grid modernization technologies are commercially available today. Smart building controls, digital energy‑management systems, flexible EV charging and distributed storage can all help reduce strain on the grid and unlock capacity that would otherwise require costly new infrastructure.

The challenge is not technology – it is policy and regulatory readiness. Utilities across the country face barriers that make it difficult to invest in digital tools, flexibility solutions and grid edge innovation. These are precisely the capabilities that allow the system to "see" what is happening in real time and respond accordingly. Without them, demand‑side resources remain fragmented and underutilized.

Recent prosumer research reinforces the previous point. EV plus solar customers perform best when they can sell electricity back to the grid – a reminder that rate design and market access are just as important as the technologies themselves. Demand‑side resources only deliver value when the grid can integrate them, signal them and compensate them appropriately.

Importance of a national strategy

This is where Canada’s updated National Electricity Strategy can make a meaningful difference. By embedding demand‑side measures into the core of the plan – not as optional add-ons – governments can accelerate progress on reliability, affordability and decarbonization simultaneously. 

A strong demand‑side strategy should include:

1. Modernized regulatory frameworks: Utilities need the ability to invest in digitalization, grid edge innovation and real‑time visibility tools. These investments are foundational to integrating distributed energy resources at scale.
2. Accelerated deployment of demand‑side efficiency and flexibility: These are the fastest levers available to relieve near-term grid pressure while long-lead infrastructure is planned and built.
3. Improved rate design and market access: Customers and prosumers must be able to participate in flexibility markets, respond to price signals, and contribute to system reliability.
4. A clear national vision for a digitally enabled grid: Canada needs a grid that can "see and respond" – one capable of managing millions of distributed assets, integrating renewables and supporting the digital infrastructure that underpins economic growth.

This is not about choosing between supply and demand. It is about recognizing that smarter demand is the missing piece that makes the rest of the energy plan work. Without it, Canada risks building a system that is more expensive, less reliable and slower to decarbonize.

As governments finalize the next iteration of Canada’s electricity strategy, the opportunity is clear. A modernized, digitally enabled grid, paired with a strong demand‑side approach, will allow Canada to meet rising electricity needs while keeping energy affordable and accelerating progress toward climate goals.

In our work with utilities and governments across Canada, we see every day how demand‑side solutions and digital grid tools can unlock capacity, strengthen resilience and support the digital‑era infrastructure the country increasingly relies on. The tools are here and the opportunity to put them to work is now.