Electricity sector in Canada

The electricity sector in Canada has played a significant role in the economic and political life of the country since the late 19th century. The sector is organized along provincial and territorial lines. In a majority of provinces, large government-owned integrated public utilities play a leading role in the generation, transmission and distribution of electricity. Ontario and Alberta have created electricity markets in the last decade in order to increase investment and competition in this sector of the economy.

Canada is the world's second-largest producer of hydroelectricity after China, which accounted for 58% of all electric generation in 2007. Since 1960, large hydroelectric projects, especially in Quebec, British Columbia, Manitoba and Newfoundland and Labrador, have significantly increased the country's generation capacity. Canada is the world's sixth-largest producer of electricity generated by nuclear power, producing 97 billion kWh in 2013. In Ontario, Canadian-designed CANDU nuclear reactors supplied more than half the provincial electricity demand in 2007. In April 2014, Ontario became the first jurisdiction in North America to fully eliminate coal as a source of electricity generation.

Canadian homes, offices and factories are large users of electricity, or hydro, as it is often called in many regions of Canada. In 2007, Canadian per capita power consumption was among the highest in the world, with an average of 16,995 kWh per annum.

Electricity has been significant for Canada's economy and politics since the late 19th century. In the 1890s, three firms competed to develop the Canadian Niagara Falls. After the First World War, the provincial utilities were created. The public companies focused on rural electrification and hydroelectric development.

The electricity sector in Canada is organized along provincial and territorial lines as part of their jurisdiction over natural resources. All provinces and territories have set up utilities boards and regulate transmission and distribution rates.

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