82% of Canada’s electricity came from non-greenhouse gas emissions emitting sources in 2022 – hydro 60%, nuclear 14%, and other renewables 8%
Natural Resources Canada’s (NRCan) Energy Fact Book 2023–2024 shows Canada’s energy production/imports/exports in 2021 generated 24,726 petajoules as follows:
N Gas | Hydro | Coal | Other RE | N Gas liquids | Crude Oil | Uranium | Total |
28% | 5% | 5% | 3% | 4% | 44% | 11% | 100% |
Canada’s energy supply/exports/imports, including uranium, in 2021 were:
N Gas | Hydro | Coal | Other RE | Biofuels/
waste |
Crude Oil | Nuclear | Total |
40% | 11% | 4% | 1% | 4% | 32% | 8% | 100% |
Canada’s global renewable production contribution in 2021 was:
Hydro | Solid biofuels/ | Wind | Ethanol | Solar | Municipal landfills | Biodiesel | Total |
67.4% | 22% | 6.1% | 1.7% | 1.2% | 1% | .7% | 100% |
In 2021, NRCAN also reported that 82% of Canada’s electricity came from non-greenhouse gas emissions emitting sources – hydro 60%, nuclear 14%, and other renewables 8%. In 2022, electricity generation composition overall was essentially unchanged:
Hydro | Nuclear | Fossil fuels | Wind | Solar | Total |
61.3% | 12.9% | 19.2% | 6.1% | .5 | 100% |
(Note: nuclear energy as a non-emitting source continues to engage public debate as the processes for mining and refining uranium ore and making reactor fuel all require large amounts of energy).
NRCan states that renewables in Canada increased by 10% from 2011 to 2021, with solar and wind having the largest growth. Canada’s Energy Regulator affirms that since 2010, Canada’s crude oil production has increased 57%. Natural gas production increased by approximately 14% as a result of horizontal drilling and hydraulic fracturing techniques. Coal has continued to decrease rapidly since 2008.
As energy security stems from energy availability and affordability, the IISD predicts Canada’s existing energy system, dominated by oil, gas, and coal, is very susceptible to the geopolitics of global producers, supply chain disruptions, and unpredictable market forces. In contrast, the lower price of renewable energy will not fluctuate with future global fuel markets. This will make renewables attractive and improve energy security for utilities and power producers. Between 2010 and 2020, the cost of solar and wind power fell 56% and 85%, respectively. Clean Energy Canada, a clean energy think tank, declares global renewable power generation is growing at an unprecedented rate, driven by its favorable economics and energy security concerns around oil and gas (primarily caused by recent wars) and emissions goals.
NRCan states that an electrified system powered by renewable energy doesn’t rely on input fuel. Canada has more than 160,000 km of transmission network lines, mainly running north to south across the USA – Canadian border to benefit electricity exports. Storage technologies will improve the flexibility of the grid. Like renewables, utility-scale lithium-ion battery costs are falling rapidly and are projected to continue to decrease. As wind, solar, and battery storage capacity increases, forecasting will improve based on historical data analysis to support Canada’s commitment to its 2030 Emissions Reduction Plan. The electrification of buildings and transport will create additional demand for electricity of 2.2 to 3.4 times more electricity capacity in 2050.
In 2022, G7 members agreed to decarbonize each country’s electricity-generating sectors by 2035. Canada’s Energy Regulator predicts that the electricity system, transitioning Canada to a net-zero electricity grid by 2035, will have Clean Electricity Regulations to meet that end later this year. Wind and solar, given their low capital and operating costs, will be the backbone for 2050 net-zero emissions scenarios.
The electricity sector has exhibited the greatest reduction in emissions among Canada’s major sectors, cutting emissions by more than half from 2005 to 2021. Small modular reactors, particularly in the 2035 to 2050 period, are expected in the electricity system, with coal completely phased out by 2030.
The David Suzuki Foundation declares that Canada will need seven times as much renewable capacity by 2035 as it is now and a 14-fold increase by 2050. The Canadian Climate Institute reports federal funding (March 2023), dedicating tens of billions of dollars for provinces and territories to upgrade and expand their grids with clean electricity to complement proposed clean electricity standards, is underway
Recommendations needed include strong policies for renewables to have a greater share of the energy market, including regulatory reform, market design, and investment in grid infrastructure to enhance electricity grids. The Canadian Climate Institute stresses policies include large-emitter carbon pricing to reduce emissions, the Clean Electricity Regulations, investment tax credits, and provincial and territorial policies.
This Post was submitted by Climate Scorecard Canada Country Manager Diane Szoller.