Wind and solar are projected to become the future backbone of Canada’s electrical grid.
Canada’s Energy Regulator (CER) shows that over the past decade, wind and solar have seen steady growth, further diversifying Canada’s clean electricity mix with regional variations reflecting differences in geography, resource availability, and provincial policy priorities.
Stats Canada reported in 2025 that wind and solar combined generated a record-high 56.5 million MWh of electricity in Canada, meeting roughly 9.0% of Canada’s total electricity demand. Wind produced 50.5 million MWh, solar 6.0 million MWh. The remaining renewable grid is primarily hydroelectricity (55.2%). Overall electricity generation totaled 625.2 million MWh in 2025, up 2.6% from 2024. Hydroelectricity totaled 343.4 million MWh, slightly higher (+0.5%) than in 2024. Nuclear was 81.6 million MWh (13%). Electricity generation from combustible fuels was 143.4 million MWh in 2025 (22%) from natural gas (16%), coal 3% and petroleum/biofuels (3%).
Stats Canada shows electricity generation from wind grew by 10.1% between 2016 and 2025, and solar by 13.9%. CER indicates many factors driving the growth of Canada’s renewable energy sector: technological progress, environmental changes associated with greenhouse gas emissions, costs, and evolving policy frameworks. Over the last decade, declining capital costs and continual improvements in energy efficiency have lowered the cost per megawatt (MW) of installed renewable electricity generation capacity. CER states that looking forward, renewable capacity is anticipated to grow by 12,102 MW (11.5%) between 2024 and 2030, based on planned projects. Wind projects lead planned additions (7,833 MW), followed by solar (3,019 MW) and hydroelectricity (1,227 MW). Solar, wind, and energy storage capacity are expected to double in Canada by 2035. The Canadian Climate Institute projects similar numbers.
The Canadian Institute for Climate Choices identified barriers hindering Canada’s transition to renewable energy, including prolonged infrastructure permitting processes split across multiple jurisdictions, fragmented provincial grid regulations, high capital costs, public opposition, and labor and storage costs. Addressing these barriers requires regulatory streamlining, strengthening interprovincial grid connections, providing financial incentives, enhancing training, and strengthening community engagement. Peter Nicholson of the Canadian Climate Institute also notes barriers such as prevailing conservatism among utilities and regulators and a failure to fully appreciate the longer-term economic implications of the global solar power revolution.
Natural Resources Canada (NRCan) notes that Canada primarily consumes its domestic solar and wind power within its borders and doesn’t directly export these power sources to other countries. While Canada exports vast amounts of clean hydroelectricity to the USA, its wind and solar generation almost exclusively supplies domestic power grids, remote off-grid communities, and localized heating and power for homes and businesses. Export Development Canada’s comparative advantage analysis identifies that export opportunities exist in solar, hydro, wind, biofuels, recycling, and waste management across markets such as the UK, Germany, France, Australia, Japan, and South Korea. Canada is a major player in the global export of clean-energy technologies and products (i.e., wind turbine components, solar technology, and expertise) as well as hydrogen and biofuels to key markets in the USA, Europe, and Asia.
NRCan also clarifies that the balance between energy sources depends on whether you are looking at Total Energy Supply (including transportation, heating, and industrial uses) or the electricity generation grid. Fossil fuels still dominate Canada’s total energy supply, roughly 75%-76% of the national energy mix. Renewable energy sources contribute about 16%-17%, while nuclear power provides the remainder.
Canada’s Clean Electricity Regulations, announced in December 2024, are integral to Canada’s strategy to meet growing demand with affordable, reliable, and clean electricity, setting the country on a path to net-zero by 2050. Regulations come into effect in 2035. Federal support will include investment tax credits, funding, and low-cost financing to expand clean electricity generation and transmission infrastructure. Some modeling shows that in a scenario with higher demand growth, electricity emissions could more than double by 2050 (relative to 2025 levels). With regulations, the buildout of new generations is expected to have only a small impact on the overall costs of maintaining and expanding the electricity system. Driven by plummeting costs and soaring demand from data centers, electric vehicles, and heavy industry, wind and solar are projected to become the future backbone of Canada’s electrical grid.
Learn More Resources
Canada’s Energy Regulator – Renewable Energy in Canada
Canadian Institute for Climate Choice – Barriers to innovation in the Canadian electricity sector and available policy responses
Government of Canada – Canadian Energy Security
Natural Resources Canada – Energy Fact Book, Spring 2026
Stats Canada – Electricity year in review 2025
Submitted by Climate Scorecard Canada Country Manager, Diane Szoller.