CANADA (Commonwealth Union)_ On 3 November, Deputy Prime Minister and Minister of Finance Chrystia Freeland released the 2022 Fall Economic Statement, which stated that it was focused on “constructing an economy that works for everyone… Despite global headwinds, the investments we are making today will make Canada more sustainable and wealthy for future generations.”
In its April 2022 budget, the federal government added an investment tax credit for clean technology projects, with an emphasis on net-zero technologies, battery storage options, and clean hydrogen before proposing a 30% refundable tax credit for investments in electricity generation systems such as solar photovoltaic, small modular nuclear reactors, concentrated solar, wind, and water (small hydro, run-of-river, wave, and tidal). Credits are also available for stationary power storage systems that do not utilise fossil fuels, low-carbon heat equipment, and industrial zero-emission vehicles like hydrogen or electric heavy-duty equipment used in mining or construction.
In the announcement, the government also stated that it will consult on “other eligible technologies (such as large-scale nuclear and large-scale hydropower).” It will give more information about the technology in its 2023 budget.
The proposed investment tax credit will cost CA$6.7 billion (US$5 billion) over five years, beginning in 2023-24. The update also includes up to CA$1.28 billion in funding over six years for the Impact Assessment Agency of Canada and the Canadian Nuclear Safety Commission to increase capacity and efficiency in assessment.
The budget update came the same week that Ontario Power Generation (OPG) applied for a construction licence to develop Canada’s first commercial, grid-scale SMR in Darlington, Ontario, with a potential start-up date of 2028. The “strong” combination of federal and provincial government backing, according to OPG President and CEO Ken Hartwick, conveyed a “resounding message” on sustainable energy growth. “These initiatives will help ensure the successful completion of this critical infrastructure while lowering consumer costs,” he said.
Todd Smith, Ontario’s Minister of Energy, conducted a trade mission to the Czech Republic, Poland, and Estonia earlier this week, which included conversations about SMRs. At the International Atomic Energy Association’s ministerial conference in Washington, DC, he also highlighted export prospects for Ontario’s nuclear supply chain.
“We applaud the federal government’s new tax breaks for clean energy, which were included in the Fall Economic Statement,” he said. “We encourage the federal government to take steps that complement our approach, such as expanding these measures to include all nuclear technologies and hydroelectric power generation, in recognition of the role they already play in assisting in meeting our growing energy needs,” he added.
