Katerina Swanson
Canada's energy sector is a complex mix of renewable and non-renewable sources. While the country is taking steps to transition to low-carbon energy sources, fossil fuels still play a significant role in its energy mix. In 2013, the leading type of power generation by utilities in Canada was hydroelectricity, with a share of 60.1%. However, fossil fuels like natural gas (10.3%), coal (10%), and fuel oil (1.2%) also contributed significantly to the energy mix. As of 2022, 70% of Canada's electricity comes from renewable sources, and 82% comes from non-greenhouse gas-emitting sources. However, fossil fuels still generate 18% of Canadian electricity, with coal accounting for about half of that (7%) and the remainder being a mix of natural gas and oil. Canada is also a significant producer and exporter of oil, with 96% of its oil production in 2023 coming from western Canada, and the majority of its exports going to the United States.
| Characteristics | Values |
|---|---|
| Percentage of Canadian electricity generated from fossil fuels | 18% |
| Breakdown of fossil fuels used for electricity generation | 9.5% from coal, 8.5% from natural gas, 1.3% from petroleum |
| Provinces that use coal for electricity generation | Saskatchewan, New Brunswick, Nova Scotia |
| Provinces that use natural gas for electricity generation | Alberta, Saskatchewan, British Columbia |
| Provinces that use petroleum for electricity generation | Alberta, Saskatchewan, Nova Scotia, Nunavut |
| Provinces with diversified generation mixes | New Brunswick, Newfoundland and Labrador, Ontario, Manitoba |
| Canada's rank in global hydroelectricity production | Second largest producer |
| Percentage of Canadian electricity generated from renewable sources | 70% |
| Percentage of Canadian electricity generated from nuclear power | 13% |
| Percentage of Canadian electricity exported to the United States | 7% |
| Canada's rank in global uranium production | Second largest producer |
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What You'll Learn
- Fossil fuels are the second most important source of electricity in Canada
- Hydroelectricity is the most important source of electricity in Canada
- Canada is a world leader in hydroelectricity
- Canada's fossil fuel electricity generation is mainly from coal, natural gas and oil
- Alberta, Saskatchewan, Nova Scotia and Nunavut generate most electricity from fossil fuels
Fossil fuels are the second most important source of electricity in Canada
Canada is a world leader in hydroelectricity, nuclear power, and hydrogen, with 70% of its electricity coming from renewable sources and 82% from non-greenhouse gas-emitting sources. The most important source of electricity in Canada is moving water, which generates 59.3% of the electricity supply. Canada is the second-largest producer of hydroelectricity in the world, with hydropower installed capacity of more than 78 gigawatts. This capacity has been developed in provinces with favourable geography and hydrography, primarily in Quebec, but also in British Columbia, Ontario, Labrador, and Manitoba.
Despite the country's significant renewable energy sources, fossil fuels remain the second most important source of electricity in Canada. In 2013, hydroelectricity was the leading type of power generation, with a share of 60.1%. Fossil fuels, including natural gas (10.3%), coal (10%), and fuel oil (1.2%), accounted for a notable proportion of the energy mix. In 2022, fossil fuels generated 18% of Canadian electricity, with coal contributing about half (7%) and the remainder a mix of natural gas and oil.
Alberta, Saskatchewan, Nova Scotia, and Nunavut generate most of their electricity from fossil fuels. These provinces have historically relied on coal and natural gas, with Alberta and Saskatchewan also using substantial amounts of natural gas. In 2021, Canada's wind power capacity was approximately 13.9 gigawatts, with most wind facilities located in Ontario, Quebec, and Alberta. Solar energy is also growing, with Canada having about 3.4 GW of solar power capacity in 2021, mainly in Ontario.
Canada's transition away from fossil fuels is crucial for addressing climate change and improving human health by reducing CO2 emissions and local air pollution. The federal government has initiatives to reduce dependence on diesel-fired electricity, and provinces like Ontario have eliminated coal as an energy source. As Canada aims to meet its climate goals, the development of clean power and low-carbon fuels becomes increasingly important.
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Hydroelectricity is the most important source of electricity in Canada
Canada is a world leader in hydroelectricity, and it is the country's most important source of electricity. In 2013, hydroelectricity accounted for 60.1% of power generation by utilities in Canada, with nuclear, natural gas, coal, wind, fuel oil, biofuels and waste, wood, and solar making up the rest. In 2015, hydropower made up 87% of total generation, with the rest being biomass, wind, and some natural gas. In 2022, 62% of Canada's electricity came from hydroelectric sources, with nuclear power plants generating about 13%.
Hydroelectricity is particularly dominant in certain provinces, such as Manitoba (99.5%), Quebec (97.2%), Newfoundland and Labrador (97.1%), and British Columbia (88.7%). In hydro-rich provinces, hydroelectric power accounts for the vast majority of electricity generation. In 2018, the Northwest Territories generated 70% of their electricity from hydroelectric dams.
Canada is the world's third-largest producer of hydroelectricity, producing over 378 terawatt-hours in 2014, with a hydropower installed capacity of more than 78 gigawatts. The majority of this capacity has been developed in Quebec, taking advantage of favourable geography and hydrography, but also in British Columbia, Ontario, Labrador, and Manitoba.
While fossil fuels are the second most important source of electricity in Canada, there is a clear transition towards low-carbon sources, including nuclear and renewable technologies. In 2021, wind and solar photovoltaic panels accounted for 7% of total electricity generation, up from 1.5% in 2010. Canada is also the world's second-largest producer of uranium, with 85% exported and the remaining 15% used to fuel reactors in Ontario and New Brunswick.
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Canada is a world leader in hydroelectricity
Hydropower contributes more than $35 billion to Canada's gross domestic product (GDP) and supports over 130,000 direct and indirect jobs across the country. Canada's waterpower-dominant electricity grid is the cleanest of all G20 nations. In 2019, Canada had 81 GW of installed hydroelectric capacity, producing about 400 TWh of electricity.
Canada's hydro facilities convert 90% of available renewable energy from water into electricity, making it the most efficient source of electrical energy. There is currently 155,000 MW of technical undeveloped waterpower potential across Canada, nearly double the country's current hydroelectricity generation capacity.
The widespread usage of hydroelectricity has led to "hydro" being used in some parts of Canada to refer to electricity in general, regardless of the source. Efforts by the Government of Canada, in collaboration with hydropower entities, aim to expand and maintain hydroelectric resources. This is partly driven by the fact that Ontario is forecasted to have a 60 TWh increase in net energy demand by 2043.
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Canada's fossil fuel electricity generation is mainly from coal, natural gas and oil
Fossil fuels generate 18% of Canadian electricity. Of this, coal accounts for half (7% of the total), with the remainder a mix of natural gas and oil. Alberta, Saskatchewan, Nova Scotia, and Nunavut generate most of their electricity from fossil fuels. Alberta and British Columbia (B.C.) produce 98% of Canada's natural gas. Smaller amounts are produced in Saskatchewan, Ontario, the Northwest Territories, and New Brunswick.
In 2020, natural gas was the main energy consumed in Canada, accounting for 38% of consumption. Refined petroleum products and electricity accounted for 37% and 18% respectively.
Canada is a major producer and exporter of oil. In 2023, Canada exported an average of 4.0 MMb/d (nearly 80% of its total production). Canada holds some of the largest oil reserves in the world—11% of the world’s reserves. Only Venezuela and Saudi Arabia had more as of 2020.
Canada's crude oil production grew from 3.6 MMb/d in 2013 to 5.1 MMb/d in 2023, with almost all growth coming from oil sands. Natural gas production increased from 14.1 Bcf/d in 2013 to 17.9 Bcf/d in 2023. In 2023, Canada was the fifth-largest natural gas producer in the world.
In 2021, 625.7 TWh of electricity was generated in Canada. While fossil fuels still play a significant role in Canada's energy mix, the country is also a major producer of hydroelectricity, which accounted for 60% of all electric generation in Canada in 2018, making it the world's third-largest producer.
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Alberta, Saskatchewan, Nova Scotia and Nunavut generate most electricity from fossil fuels
Canada is working towards transitioning its energy systems away from fossil fuels and towards low-carbon sources to reduce CO2 emissions and exposure to local air pollution. However, fossil fuels still generate a significant amount of Canadian electricity, with coal, natural gas, and oil being the main sources.
Alberta, Saskatchewan, Nova Scotia, and Nunavut are the provinces that generate most of their electricity from fossil fuels. Alberta, a major producer of oil and natural gas, has historically relied on coal and natural gas for power generation, with 60.9% of its energy coming from these sources in 2013. Saskatchewan, another significant oil producer, also uses substantial amounts of natural gas and has historically depended on fossil fuel power stations, with 86% of its energy coming from these sources in 2013. Nova Scotia, which stopped producing natural gas in 2018, still relies on coal for a portion of its energy generation, along with other fossil fuels. Remote communities in Nunavut produce most of their electricity from diesel generators, resulting in high economic and environmental costs.
In contrast, other Canadian provinces have shifted towards renewable energy sources. For example, hydro-rich provinces like Manitoba, Quebec, Newfoundland and Labrador, and British Columbia rely heavily on hydroelectric power, which has contributed to their lower electricity prices. Additionally, wind power and solar photovoltaic panels have grown as sources of electricity generation in Canada, increasing from 1.5% in 2010 to 7% in 2021.
While Canada's overall electricity generation is diverse, with hydroelectricity, nuclear power, and other renewable sources playing significant roles, the reliance on fossil fuels in certain provinces remains notable.
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Frequently asked questions
Moving water is the most important source of energy in Canada, generating 59.3% of its electricity supply. Canada is the second-largest producer of hydroelectricity in the world.
Fossil fuels are the second most important source of energy in Canada, generating 18% of its electricity supply. Coal is the largest contributor, providing 9.5% of the country's electricity supply, followed by natural gas at 8.5% and petroleum at 1.3%.
Alberta, Saskatchewan, Nova Scotia, and Nunavut generate most of their electricity from fossil fuels. Saskatchewan, New Brunswick, and Nova Scotia rely on coal for less than half of their electricity generation. Alberta and Saskatchewan also use substantial amounts of natural gas.
Yes, Canada is transitioning towards low-carbon sources of energy, such as nuclear and renewable technologies. In 2022, 70% of Canada's electricity came from renewable sources, and 82% came from non-greenhouse gas-emitting sources.
