Electricity''s share of end-use demand increases from about 17% currently to over 29% in 2050. In 2010, total capacity was 132GW. Driven by increasing electricity demand, total capacity reaches 215GW in the Evolving Policies Scenario.
In 2019, total generation was 632TWh. In 2050, total generation is projected to be 819TWh.
Description: This graph shows the total additions and retirements of electric generation capacity by 2050 in the Evolving Policies Scenario and Current Policies Scenario, and breaks it down by fuel source. In the Evolving Policies Scenario, these additions include 47.2GW of wind, 14.0GW of natural gas, 24.2GW of solar, 4.7GW of hydro, 0.4GW of nuclear, and 0.3GW of biomass. Retirements include 8.8GW of coal, 2.3GW of nuclear, and 1.8GW of oil. In the Current Policies Scenario, these additions include 13.4GW of natural gas, 15.0GW of wind, 5.5GW of hydro, 8.7GW of solar, and 0.5GW of biomass. Retirements include 8.2GW of coal, 2.3GW of nuclear, and 1.6GW of oil.
Over the projection period, the Evolving Policies Scenario adds more electric capacity than the Current Policies Scenario, mainly in wind and solar additions.
In both scenarios, capacity retirements are led by the phasing out of traditional coal-fired power plants by 2030.
Description: This chart shows installed electricity generation capacity by technology in 2030 and 2050 for the following scenarios: NZE Base, Higher Carbon Price, Higher Demand, Limited Transmission, Hydrogen, and BECCS. Installed capacity, given in gigawatts, is as follows:
All scenarios see wind and solar dominate new capacity additions. Electricity storage also sees rapid growth. New demand is primarily met by wind and solar while high GHG emission generation technologies see rapid decline. The importance of hydropower remains high. However, there are not major hydropower capacity additions.
NZE- Net-Zero Electricity Scenario BECCS- Bio energy with carbon capture and storage
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Canada is largely reliant on hydroelectric sources for energy production. In 2023, hydraulic turbines, driven by flowing water, generated 364 terawatt-hours of electricity, far more than any other electricity generation type. Total electricity generation in Canada was around 633 terawatt-hours that year.
Electricity is the flow of electrons from a negatively charged body to a positively charged body. Electricity can be used by humans as an energy source in a large number of applications that include heating, lighting and powering electric motors.
While electricity exists in natural forms such as lightning and static electricity, it is usually generated for human use by electromechanical generators. These generators may be propelled by the kinetic energy of flowing water and wind, or by the movement of steam produced from water boiled by fuel combustion or nuclear fission. Other energy sources and technologies can also be used, including natural gas turbines and solar photovoltaic cells. Once generated, the electricity is transported by a conductor (usually copper wire) to a point where it is converted into usable energy, be it light, thermal, or kinetic energy.
The electricity industry is involved in three main activities:
The generation, transmission and distribution of electricity in Canada fall primarily under provincial jurisdiction. Provincial governments exercise their jurisdiction through provincial Crown utilities and regulatory agencies. Historically, electricity has been provided mainly by vertically-integrated electric utilities that were often provincial Crown corporations with monopoly rights (e.g., Manitoba Hydro). Some large industrial electricity users, such as aluminum manufacturers, have also built electricity generation facilities to meet their own electricity requirements.
Over the past decade, the structure of the electricity industry has undergone significant change. Most provinces have unbundled the generation, transmission and distribution functions of electric utilities into separate organizations. As well, some provinces have moved towards a more competitive generation system with the private sector playing an increasing role, giving rise to independent power producers.
Several associations represent the interests of the electricity industry, including the Canadian Electricity Association, several provincially focused independent power producers’ societies, and several source-specific associations (e.g., the Canadian Hydropower Association).
The federal government plays a supporting role by investing in research and development and supporting the commercialization of new technologies. The Canada Energy Regulator (formerly the National Energy Board) exercises federal jurisdiction over electricity exports and over international and interprovincial power lines. The Canadian Nuclear Safety Commission regulates the use of nuclear energy and materials to protect health, safety, security and the environment, and to implement Canada’s international commitments on the peaceful use of nuclear energy. The federal government is also active in the development of nuclear energy technology through its crown corporation, Atomic Energy of Canada Limited.
In the long term, electricity generation tends to rise slightly every year in order to meet gradually increasing demand. In 2014, electricity generation amounted to 639 terawatt hours. By comparison, electricity generation totaled 467 billion kilowatt hours in 1990.
Fossil fuels are the second most important source of electricity in Canada. About 9.5 per cent of electricity supply comes from coal, 8.5 per cent from natural gas and 1.3 per cent from petroleum. Fossil fuel generation is particularly important in Alberta and Saskatchewan, where several power stations have been built adjacent to large coal deposits. Fossil fuel generation is also important in the Atlantic Provinces, Northwest Territories and Nunavut. Ontario used to rely heavily on coal-fired generation; however, in April 2014, the last coal-fired generating capacity was shut down.
Nuclear power is the third most important source of electricity in Canada. About 16 per cent of electricity supply is generated in nuclear power plants using the Canadian-developed CANDU reactor. Eighteen of Canada’s nineteenoperating nuclear power installations are in Ontario, one is in New Brunswick. Quebec has decided to shut down their nuclear power plant in December 2012.
Non-hydro renewable sources currently contribute 5.2 per cent of Canada’s electricity supply. Wind has become the predominant non-hydro renewable source surpassing biomass (e.g., wood waste, spent pulping liquor). An emerging source, solar provides a still small but rapidly increasing amount of electricity.
Electricity Generation in Canada (in terawatt hours)
The bar chart displays electricity generation in Canada from 2010 to 2014, in terawatt hours (TWh). The bars of different heights indicate that generation was 589 TWh in 2010 and increased to 618 TWh in 2011, and then increased again to 639 TWh in 2014.
Historically, provincial governments tended to ensure that enough electricity generation capacity was developed within their boundaries to meet provincial needs. As a result, a limited amount of electricity is traded between neighbouring provinces and with the United States. One major exception is Labrador’s Churchill Falls hydro facility, whose output is sold to Hydro-Québec Distribution.
Still, a certain amount of trading takes place as it provides opportunities for sellers to increase revenues by selling electricity that might otherwise go to waste and opportunities for buyers to ensure adequate supplies in periods of high demand or during outages at generating plants.
Some trading reflects seasonal circumstances in that electricity demand peaks during the winter in Canada and peaks during the summer in the United States. As well, hydroelectric utilities with water reservoirs may boost production during daily peak demand periods in order to export electricity at advantageous prices, and then reduce production (while refilling the reservoirs) during off-peak periods while importing electricity at lower prices.
In recent years, Canada has been a net exporter of electricity to the United States. In 2014, export sales to the United States amounted to 58.4 terawatt hours, which is less than 10 per cent of total Canadian electricity generation. Revenues from exports totalled $2.9 billion in 2014, while imports totalled $0.6 billion.
Exports and Imports of Electricity (in terawatt hours)
The bar chart displays exports and imports of electricity in Canada from 2010 to 2014, in tetrawatt hours (GWh). The blue bars of different heights indicate that exports were about 43.6 TWh, in 2010 increased to 63 TWh in 2013 and declined to 59 TWh in 2014. Another set of red bars that represents electricity imports indicates an overall decreasing trend from 18.6 TWh in 2010 to 13 TWh in 2014.
Electricity prices differ across Canada due to a number of factors; the most significant of them are the market structure and the type of available generation. Alberta has a deregulated electricity market where prices are market-based. Ontario has partially restructured its electricity market. In other provinces and territories, electricity prices are set by electricity regulators.
The type of available generation is reflected in the cost of generating electricity, which is the important element of electricity pricing. It varies by province or territory depending on the sources used to produce electricity. Hydroelectric stations currently provide some of the lowest-cost electricity in Canada. However, as the most economical projects were developed first, new hydroelectric projects may have higher production costs.
Hydroelectric and nuclear power plants are fairly capital intensive, which means that a major portion of the generation costs pertains to the cost of building the production infrastructure. Operating and fuel costs are relatively low compared to other electricity sources. In the case of natural gas and petroleum-based generation, the cost of fuel accounts for a large portion of total generation costs. Because of this, the cost of generating electricity from these fuels fluctuates with changes in the prices of these fuels. Coal-fired power plants fit in the middle of this spectrum, with mid-range capital costs and mid-range fuel and operating costs.
Other important elements of the pricing of electricity, in addition to the market structure and the cost of generation, are the costs of its transmission and local distribution. These costs vary across Canada, depending on factors such as geography and population density.
Canadian consumers benefit from some of the lowest electricity prices in North America. In Canada, the lowest electricity prices are found in British Columbia, Manitoba and Quebec. These three provinces have access to low-cost hydroelectricity from large-scale projects, according to Hydro-Quebec’s annual report on electricity prices in major cities in North America. In 2014, average prices for residential customers, in cents per kilowatt-hour, were 8.12 in Montreal, 9.12 in Winnipeg, and 10.93 in Vancouver – the lowest in major North American cities, while prices in Charlottetown – 17.37 and Edmonton – were among the highest.
Because of the technical limitations on storing electricity, electric utilities and governments work to ensure that enough electricity is available to meet demand at any given time and to avoid power outages. Several actions are also taken to ensure the reliability of the electricity grid.
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