Natural gas-fired power plants would continue to be a reliable energy supplier for Canada under proposed revisions to the nation’s electricity regulations.

Under draft rules issued Thursday, thermal generation including natural gas would be accepted if the operations include removing greenhouse gas (GHG) emissions using carbon capture and storage (CCS). Federal and provincial incentives would encourage the switch, according to the proposed rules package.

“The draft regulations set a clear signal for transitioning toward a clean grid, while including flexibilities to avoid stranding large capital assets, and to enable electricity systems to continue to provide reliable, affordable power,” officials said. 

“One such flexibility allows for an ongoing, though limited,...