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8.3 The Integrated North American Grid
There are over 35 electricity transmission interconnections between the Canadian and U.S. power systems, forming a highly integrated grid.
Introduction to the Integrated Grid and Trade
Although there are several east-west interconnections between Canadian provinces, the majority of electricity trade occurs on a north-south basis between Canadian provinces and U.S. states. Every Canadian province along the U.S. border is already electrically interconnected with a neighbouring U.S. state or states, with many provinces boasting multiple international connections.
Integrated North American Grid
Integration is set to continue expanding, with multiple cross-border transmission projects currently in various stages of development. Integration of this type across a large geographic area results in an electricity grid that is more flexible, reliable, and secure—on both sides of the border. Below is a map of major Canada–U.S. Transmission Interconnections.
Electricity Canada believes that there is no better example of the promise and benefit of electricity-related integration between nations than that of Canada and the United States.
Advantages of Integration
Canada and the United States enjoy a mutually beneficial and robust trade in electricity, and this collaboration has successfully served Canadian and American communities and businesses for over 100 years. This bilateral relationship is a global model for the cooperative planning and operation of a vast and complex electricity system.
Integration of this kind between neighbours improves environmental and grid performance in a number of important ways.
• More than 80% of Canadian electricity is generated from non-emitting sources, compared to just 39% for the U.S., providing our southern neighbour with a leg-up in its decarbonization efforts.
• Agreements between U.S. and Canadian electricity suppliers and trade in electricity markets allow for storage, off-peak sale, and a more efficient use of resources—particularly renewables.
• Integrated grids have greater resilience in the face of extreme climate events or prolonged weather events, like cold snaps or heat waves, which can result in high costs or even blackouts.
• Integration improves affordability, as more efficient price signals and larger markets help to keep downward pressure on costs and to expand access to competitively priced resources.
Power Grid Network
The completion of additional integration projects will mark yet another important phase in the bilateral legacy of playing to our respective national strengths to optimize environmental performance across North America.
FERC and NERC
Two entities play particularly important roles with respect to the interconnections between the Canadian and U.S. electricity grids—the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC).
FERC
FERC is an independent U.S. government agency that regulates the interstate transmission of electricity, natural gas, and oil. FERC reviews proposals to build liquified natural gas (LNG) terminals and interstate natural gas pipelines, as well as licensing hydroelectric projects. FERC is also responsible for the American oversight of NERC.
NERC
NERC, originally created in 1968, develops and enforces reliability standards; annually assesses seasonal and long-term reliability; monitors the bulk power system; and educates, trains, and certifies industry personnel.
NERC’s jurisdiction spans the continental United States, Canada, and the northern portion of Baja California, Mexico—a bulk power system that serves more than 334 million people. It falls under the oversight of FERC and governmental authorities in Canada.
NERC enforces Critical Infrastructure Protection (CIP) Standards, and conducts extremely valuable technical research, while providing services and operational guidance that are essential to maintain grid reliability.
North American Reliability Corporation Regions
NERC encompasses six operating regions:
• WECC – Western Electricity Coordinating Council
• MRO – Midwest Reliability Organization
• TRE – Texas Reliability Entity
• SERC – Southeast Reliability Corporation
• RFC – Reliability First Corporation
• NPCC – Northeast Power Coordinating Council, Inc.
Roadmap to the Integrated Electricity System
Electricity Canada has developed a roadmap to better leverage our integrated continental electricity system through expanded collaboration between Canada, the United States, and Mexico.
The roadmap consists of the following recommendations:
• Increase trade in clean electricity and support electricity trade missions in the United States
• Promote the electrification of transportation
• Streamline permitting processes for cross-border transmission projects
• Pursue joint innovation and research and development projects
• Support clean electrification in remote and Indigenous communities
• Coordinate carbon pricing mechanisms
• Examine climate adaptation risks and practices
• Enhance electricity grid security and reliability
• Collaborate on energy information
• Ensure meaningful consultation within the electricity industry.
Trade
Electricity trading between Canada and the United States began in 1901. Today, although electricity trade flows both ways across the border, Canada is an overall net exporter of electricity
Approximately 9% of Canada’s electricity generation is exported to the United States, with Quebec being the largest exporting province.
Canada’s exports have trended upward over time.
For the period of 1990–2020, Canada’s net trade revenue from electricity also grew. In 2020, net Canadian trade revenue was over $2B.
Knowledge Check
More than 80% of Canadian electricity is generated from non-emitting sources, compared to just 39% for the U.S.
