The electricity sector of Canada is dominated by clean energy sources, namely hydropower and nuclear energy. By land area, Canada is the second-largest country in the world and is rich in renewable freshwater resources: rivers, reservoirs, and lakes that power the majority of the country’s electricity grid. The first hydroelectric facility in Canada started operations in the early 20th century, and the sector expanded ever since. By the 2020s, Canada’s
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Electricity sector in Canadian provinces
The provinces and territories that share a border with the ocean, namely Quebec, British Columbia, Newfoundland and Labrador, and Ontario, accounted for the largest
hydropower generation in Canada in 2022.
Nuclear energy is the second-largest source of electricity in the North American country, which ranked among the 10 leading
countries worldwide by operable nuclear power capacity in 2023. Five out of the six
nuclear power plants in the country were located in Ontario, which generated around 50 percent of its electricity from nuclear. As of 2023, the Canadian NB Power and Ontario Power Group were planning the construction of new Small Nuclear Reactors (SMRs), while the latter signed a cooperation agreement with the French multinational energy company EDF, announcing new EPR (European Pressurized Reactor) facility projects in the country.
By comparison, the provinces of Nunavut, Saskatchewan, Nova Scotia, Alberta, and the Northwest Territories derived most of their electricity from fossil fuels. These provinces also accounted for some of the highest
end-use electricity costs in Canada.
Energy transition in Canada
In 2022, more than 80 percent of the overall
electricity mix in Canada came from renewables or
nuclear power. In order to have a fully clean power sector by 2035, a transition towards less carbon-intensive power sources is planned for the provinces that are still reliant on fossil fuels. However, oil and natural gas were the main sources of
primary energy consumed in the country in 2022 – and clean electricity only made up around 20 percent of it. The Canadian government intends to reach net-zero emissions by 2050 and is financing the energy transition by investing in electric vehicles, domestic heat pumps, renewable energy production, and energy storage, as well as in the development of
clean electricity programs.
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