Canada’s energy sector is a complex and multifaceted landscape, integral to both the nation’s economy and its environmental footprint. As of 2021, Canada’s installed electricity generation capacity stood at approximately 149 GW, with projections to increase to 170 GW by 2035. This growth is partly attributed to the implementation of innovative strategies like the Small Modular Reactors (SMR) Roadmap.
Electricity Generation
In 2022, Canada generated 640.3 TWh of electricity, showing a 2% increase from the previous year. The country’s electricity generation is unique, heavily reliant on clean hydro energy, which contributed 61.3% in 2022. Nuclear power provided 12.9%, while fossil fuels, mainly coal and natural gas, contributed 19.2%. Renewables like wind and solar are also significant, contributing 6.1% and 0.5%, respectively.
Hydro energy’s dominance is particularly notable in provinces like British Columbia, Manitoba, and Newfoundland and Labrador, where it accounts for up to 95% of electricity generation. Ontario and Québec have eliminated coal-based power, whereas Alberta and Saskatchewan primarily rely on fossil fuels.
Renewable Energy Trends
Renewable energy, including hydro, wind, solar, and biomass, has been stable, making up about 67% of total electricity generation in 2022. Canada’s commitment is to increase this share significantly, aiming for 90% electricity generation from renewables and non-emitting sources by 2030.
Energy Consumption in Canada
Canada’s energy consumption profile is as diverse as its energy production. With a per capita energy consumption among the highest globally, largely due to its size and climate, Canada faces unique challenges in energy management. In 2022, the total energy consumption rose to 298 Mtoe, a 2.4% increase from the previous year. This rise followed a 2.7% increase in 2021 and a significant 7.4% drop in 2020.
Fossil fuels, including coal, oil, and gas, continue to represent a significant portion of this consumption, with natural gas at 41%, oil at 34%, and coal at 2% in 2022. Primary electricity and biomass also play notable roles in the energy mix.
In the oil products sector, the transport sector is the largest consumer, followed by industry. Natural gas consumption has been growing steadily, particularly since 2016, with the oil and gas sector being the largest consumer, mainly for oil sands exploitation.
Coal and lignite consumption, mostly used in the power sector, has been decreasing rapidly, reflecting the country’s efforts to transition to cleaner energy sources. Despite these efforts, electricity consumption has been steadily growing, with industry being the largest consumer, followed by residential and service sectors.
Crude Oil Production and Export
Canada’s crude oil production, including conventional, non-conventional oil, and NGL, has seen a significant rise, increasing by 72% between 2010 and 2022. Non-conventional oil, particularly from oil sands, constitutes about 60% of this production. The provinces of Alberta, Saskatchewan, and Newfoundland are pivotal in this sector, producing most of the country’s oil. Canada primarily exports its crude oil, with the United States being the largest market. Despite the pandemic’s impact, Canada has maintained its position as a leading oil exporter, thanks to its vast reserves.
Natural Gas and Liquids
Canada was the sixth-largest natural gas producer globally in 2020, with Alberta and British Columbia as the main production hubs. The consumption pattern of natural gas in Canada is unique, with the oil and gas sector being the largest consumer, particularly for oil sands exploitation.
Greenhouse Gas Emissions and Environmental Policies
Canada has updated its National Determined Contributions (NDC) with the goal of reducing GHG emissions to 40-45% below 2005 levels by 2030, aiming for net-zero by 2050. Despite a global low share of emissions, Canada’s per capita emissions rank among the highest.
Electric Vehicle Availability Standard
Canada’s effort to reduce transportation emissions is highlighted by the Electric Vehicle Availability Standard. This ambitious policy sets targets for auto manufacturers and importers to meet annual zero-emission vehicle (ZEV) sales, starting with 20% in 2026 and reaching 100% by 2035.