Electricity

Immediate Priority

Electricity is central to Canada’s energy system, powering everything from lighting and heating to transportation and industrial machinery. Canada’s grid already generates 83% of its power from emission-free sources like hydro, nuclear, and wind. As the country electrifies more of its economy in the years ahead, from vehicles to heating to heavy industry, electricity will be asked to carry a much larger share of the load.

That growth won’t happen evenly. Provinces start from very different positions, and building out the grid to meet the expected growth in demand from end-uses will be one of the defining challenges of the transition.

GHG emissions
  • 57
    Mt CO₂e
8.3% of the national emissions, 2024
Power generation
  • 625.7
    TWh/year
83% emissions free
Economic
  • $51B
    in GDP
Sector supports 110K+ jobs, 2024
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Top pathways for action
Pathway Elements
Role in the
Net-Zero System
Signal to
Decision-Makers
Pathways Elements
Wind
(Onshore and Offshore)
Role in the Net-Zero System
Priority Decarbonization Pathway
Signal to Decision-Makers
Deploy
Support deployment with permissive regulatory environments. Educate public to reduce safety and environmental misconceptions.
Pathways Elements
Utility-Scale Solar PV
Role in the Net-Zero System
Priority Decarbonization Pathway
Signal to Decision-Makers
Deploy
Support deployment with permissive regulatory environments and R&D in cold-climate regions.
Pathways Elements
Hydro
(Reservoir)
Role in the Net-Zero System
Decarbonization Pathway
Signal to Decision-Makers
Deploy
Support new builds where site conditions are economical and expansions where feasible. Collaborate with Indigenous communities. Expand and improve transmission infrastructure.
Pathways Elements
Grid Improvements
Role in the Net-Zero System
Priority Enabling Pathway
Signal to Decision-Makers
Deploy
Support with stable financing. Support testing and piloting of new technologies and build out regulatory environment to include these.
This is a selection of priority pathways for this sector; others are covered in the full pathway assessments below.
Current challenges
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Provincial differences

Some provinces remain heavily reliant on fossil fuels.

Aging infrastructure

Grid infrastructure needs major investment to meet clean electricity demand.

Permitting delays

Slow, complex permitting constrains project timelines.

Siting opposition

Public opposition to new generation and transmission can slow projects.

Affordability pressures

Electricity costs have outpaced inflation in several provinces.

Rate design

Rate structures tied to sales volumes don't reflect decarbonization goals.

Longer-term issues
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Scaling supply and storage

Electrification could double demand by mid-century, requiring major new generation, transmission, and storage.

Intermittency

Variable wind and solar generation requires backup capacity and grid flexibility.

Distributed generation

Grids must adapt to connect distributed resources.

Demand spikes

Sudden industrial load growth, especially from data centres, can outpace planned capacity.

Climate risk to hydro

More frequent, intense droughts threaten hydroelectric output.

Indicators of progress
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Clean generation share

Percentage of electricity demand supplied by non-emitting generation.

Electrification of end-use

Percentage of final energy demand supplied by electricity.

Interprovincial connectivity

Number of interprovincial interties and value of interprovincial electricity trade.

Economic opportunities
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Investment attraction

Natural resource endowments and legacy hydro can attract businesses seeking low-cost net-zero power.

Job and GDP growth

Build out and operation of clean power assets and demand management programs will drive sector growth.

Supply chain development

Growth of domestic supply chain related to wind, solar and SMR manufacturing.

Pathway Assessments for Electricity Sector

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View all of the major decarbonization pathways available to this sector, including a high-level signal of its current readiness, or filter the list for only the signals you’re looking for. Click any of the pathway elements for a detailed look at the analysis behind the assessments.
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Table
Cards
Filter
Pathways Signals
Pathways Roles
Choose a signal
Pathways Signals
Choose a role
Pathways Roles
Criteria status
  • Fails
  • Not promising
  • Meets in some respect
  • Potentially meets
  • Meets criteria
Pathway
Elements
Role in the
Net-Zero System
Signal to
Decision-Makers
Alignment with Carbon Neutrality
Economic
Technical
Social
Electricity Generation
Wind
(Onshore and Offshore)
Priority
Decarbonization Pathway
Deploy
Support deployment with permissive regulatory environments. Educate public to reduce safety and environmental misconceptions.
Clean power but needs storage to handle intermittent generation.
Utility-Scale Solar PV
Priority
Decarbonization Pathway
Deploy
Support deployment with permissive regulatory environments and R&D in cold-climate regions.
Clean power (assuming panel lifecycle emissions are managed) but needs storage to handle intermittent generation.
Small-Scale and Residential Solar PV
Potential
Niche Pathway
Enable
Upgrade local grid infrastructure to allow for smart metering. Provide financing options to assist in managing upfront costs.
Clean power (assuming panel lifecycle emissions are managed).
Nuclear
(Small Modular Reactors)
Potential
Decarbonization Pathway
Incubate
Support R&D, pilots, and demonstrations. Build out supply chains capable of manufacturing SMR fuel sources and modular parts.
Zero-emission, steady power. Requires decarbonized mining and waste management to handle upstream and downstream emissions.
Nuclear
(Conventional Reactors)
Decarbonization Pathway
Don’t Prioritize
Future support may be relevant in provinces with uranium supply chains or long-standing operational experience.
Zero-emission, steady power. Requires decarbonized mining and waste management to handle upstream and downstream emissions.
Hydro
(Run-of-River)
Niche Pathway
Deploy
Support buildout where site conditions are favourable. Collaborate with Indigenous communities.
Can supplement big hydro reservoirs.
Hydro
(Reservoir)
Decarbonization Pathway
Deploy
Support new builds where site conditions are economical and expansions where feasible. Collaborate with Indigenous communities. Expand and improve transmission infrastructure.
Achieves net zero. Some GHG emissions associated with initial flooding and land changes, but these can be mitigated over time.
Geothermal Power
(Closed Loop, Conventional, and Deep)
Niche Pathway
Incubate
Support closed loop R&D as well as pilot and demonstration projects. Support longer-term development of deep geothermal.
Conventional geothermal releases some carbon dioxide. Closed loop and deep geothermal are more promising for net zero.
Gas with CCS
Bridge Pathway
Don’t Prioritize
Watch for local or regional power reliability issues. Could be useful as backup power.
Difficult to capture all emissions with CCS. Requires negative emissions to offset lifecycle emissions (extraction, transport, and combustion).
Coal with CCS
Dead-End Pathway
Dismiss
Difficult to fit with existing operations and infrastructure. Support more impactful on other pathways.
Requires carbon offsets which can be limited. Perpetuates use of materials that will have little functionality in a net-zero economy.
Building-Integrated Solar PV
Niche Pathway
Deploy
Encourage interest from developers and building owners with financing mechanisms. Provide workforce training for installation. Work to integrate micro generation with the larger electricity grid.
Clean power (assuming panel lifecycle emissions are managed).
Biomass Power
(Combustion)
Niche Pathway
Don’t Prioritize
Unlikely to have a role in mainstream power generation. Watch for niche opportunities to support local or on-site power generation.
Dependent on biomass carbon intensity, land change, and transport emissions. Likely requires CCS to achieve net zero.
Grid Infrastructure and Electricity System Expansion and Improvements
Power Storage
Enabling Pathway
Enable
Support R&D so economics improve and demonstration or deployment where contexts are economically positive. Reduce regulatory hurdles for new technologies.
Prevents excess generation going to waste and mitigates issues related to the intermittency of renewable energy sources.
Interprovincial Interties
Enabling Pathway
Deploy
Encourage provincial collaboration and support interties that improve power reliability and security.
Ensures reliability with renewable generation. Clean power can be available when local supply is limited.
International (U.S.) Interties
Enabling Pathway
Don’t Prioritize
Most connections and exports already established. Monitor for new export opportunities. Prioritize provincial interties.
Offers an export opportunity for Canada’s excess renewable power.
Grid Improvements
Priority
Enabling Pathway
Deploy
Support with stable financing. Support testing and piloting of new technologies and build out regulatory environment to include these.
Integral to the net-zero future and its associated electrical demand across Canada.
Energy Efficiency
Enabling Pathway
Deploy
Provide education to manufacturers, installers, retrofitters, and purchasers on the benefits of high-efficiency assets. Offer financing mechanisms to help with up-font costs where relevant (i.e. low-income and cold-climates)
Reduces need for new power generation.
Demand Side Management
Enabling Pathway
Deploy
Support regional and local testing and piloting to determine the best methods and subsequent deployment.
Reduces need for new power generation.
Electricity Generation
Wind
(Onshore and Offshore)
Deploy
Priority
Decarbonization Pathway
Support deployment with permissive regulatory environments. Educate public to reduce safety and environmental misconceptions.
ECON
TECH
SOC
Utility-Scale Solar PV
Deploy
Priority
Decarbonization Pathway
Support deployment with permissive regulatory environments and R&D in cold-climate regions.
ECON
TECH
SOC
Small-Scale and Residential Solar PV
Enable
Potential
Niche Pathway
Upgrade local grid infrastructure to allow for smart metering. Provide financing options to assist in managing upfront costs.
ECON
TECH
SOC
Nuclear
(Small Modular Reactors)
Incubate
Potential
Decarbonization Pathway
Support R&D, pilots, and demonstrations. Build out supply chains capable of manufacturing SMR fuel sources and modular parts.
ECON
TECH
SOC
Nuclear
(Conventional Reactors)
Don’t Prioritize
Decarbonization Pathway
Future support may be relevant in provinces with uranium supply chains or long-standing operational experience.
ECON
TECH
SOC
Hydro
(Run-of-River)
Deploy
Niche Pathway
Support buildout where site conditions are favourable. Collaborate with Indigenous communities.
ECON
TECH
SOC
Hydro
(Reservoir)
Deploy
Decarbonization Pathway
Support new builds where site conditions are economical and expansions where feasible. Collaborate with Indigenous communities. Expand and improve transmission infrastructure.
ECON
TECH
SOC
Geothermal Power
(Closed Loop, Conventional, and Deep)
Incubate
Niche Pathway
Support closed loop R&D as well as pilot and demonstration projects. Support longer-term development of deep geothermal.
ECON
TECH
SOC
Gas with CCS
Don’t Prioritize
Bridge Pathway
Watch for local or regional power reliability issues. Could be useful as backup power.
ECON
TECH
SOC
Coal with CCS
Dismiss
Dead-End Pathway
Difficult to fit with existing operations and infrastructure. Support more impactful on other pathways.
ECON
TECH
SOC
Building-Integrated Solar PV
Deploy
Niche Pathway
Encourage interest from developers and building owners with financing mechanisms. Provide workforce training for installation. Work to integrate micro generation with the larger electricity grid.
ECON
TECH
SOC
Biomass Power
(Combustion)
Don’t Prioritize
Niche Pathway
Unlikely to have a role in mainstream power generation. Watch for niche opportunities to support local or on-site power generation.
ECON
TECH
SOC
Grid Infrastructure and Electricity System Expansion and Improvements
Power Storage
Enable
Enabling Pathway
Support R&D so economics improve and demonstration or deployment where contexts are economically positive. Reduce regulatory hurdles for new technologies.
ECON
TECH
SOC
Interprovincial Interties
Deploy
Enabling Pathway
Encourage provincial collaboration and support interties that improve power reliability and security.
ECON
TECH
SOC
International (U.S.) Interties
Don’t Prioritize
Enabling Pathway
Most connections and exports already established. Monitor for new export opportunities. Prioritize provincial interties.
ECON
TECH
SOC
Grid Improvements
Deploy
Priority
Enabling Pathway
Support with stable financing. Support testing and piloting of new technologies and build out regulatory environment to include these.
ECON
TECH
SOC
Energy Efficiency
Deploy
Enabling Pathway
Provide education to manufacturers, installers, retrofitters, and purchasers on the benefits of high-efficiency assets. Offer financing mechanisms to help with up-font costs where relevant (i.e. low-income and cold-climates)
ECON
TECH
SOC
Demand Side Management
Deploy
Enabling Pathway
Support regional and local testing and piloting to determine the best methods and subsequent deployment.
ECON
TECH
SOC

About the Assessments

What is a pathway element?
A specific technology, fuel, practice, or system change that could help drive Canada’s transition to net zero.
Each pathway is rated on three dimensions: economic, technical, and social. Each dimension aggregates several sub-criteria — economic covers viability and development opportunity; technical covers maturity, operational fit, and infrastructure/supply chain suitability; social covers acceptability, stakeholder relevance, and related benefits and costs. Ratings run from Fails to Meets criteria:
  • Fails: Does not meet the criteria
  • Not promising: Meets the criteria in very limited respects
  • Meets in some respect: Partially meets the criteria
  • Potentially meets: Meets most of the criteria
  • Meets criteria: Fully meets the criteria
Full scoring for each individual sub-criterion is available in the pathway explorer.
Each pathway element is categorized:
  • Decarbonization Pathway – achieves net zero
  • Niche Pathway – achieves net zero under specific conditions
  • Bridge Pathway – supports but doesn’t achieve net zero alone
  • Dead-End – incompatible with net zero
  • Enabling – supports other pathways without directly cutting emissions
Priority marks a pathway as essential and ready for deployment now. Potential marks one that could grow into its role but is still limited in feasibility.
What to do with a pathway today: Deploy (ready now), Enable (needs targeted support), Incubate (early-stage, fund R&D), Don’t Prioritize (monitor only), or Dismiss (redirect attention elsewhere).

Scores are grounded in the sources cited throughout each sector assessment, then reviewed by experts and industry stakeholders to confirm how each pathway elements criteria are ranked.

Sector Title

Primary Title
Secondary title
Priority
Decarbonization Pathway
Role in Net-Zero System

Signal to Decision-Makers

Deploy
Signal Description

Alignment with Carbon Neutrality

carbon score
Alignment with Carbon Neutrality description

Economic

Economic viability

economic viability score

Economic Viability description

Economic development

economic development score
Economic development description

Technical

Maturity

Maturity score
Maturity description

Operational fit

Operational Fit score
Operational Fit description

Infrastructure & supply

Infrastructure & supply score
Infrastructure & supply description

Social

Social acceptability

Social acceptability score
Social acceptability description

Relevance to stakeholders

Relevance to stakeholders score
Relevance to stakeholders description

Related benefits & costs

Related benefits & costs score
related benefits description