Renewable Energy in Canada

Current Status and Near-Term Developments

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This image is report cover art, the background is a sunset over mountains and a lake with a highway adjacent to the lake fading into the horizon. There is a transparent circle of blue and teal squares layered over the background suggesting a renewable cycle. A white grid overlays these two layers with 3 smaller images scattered over it: one is an aerial photograph of a biodigester plant, one is an aerial photograph of a hydroelectric dam surrounded by boreal forest, and the last is a camper van’s rear window with a reflection of a sunset and wind turbines.

Introduction

Canada’s energy system is evolving. Since 2010 renewable energy capacity expanded significantly, and renewable and other low-carbon energy sources now account for a growing share of Canadian energy use. As of 2023, approximately one-sixth of Canada’s end-use demand came from renewable energy. These energy sources play a key role in Canada’s energy system. They provide non-emitting electricity to the grid to support both its expansion and decarbonization, they enable community-owned energy projects—including remote or underserved regions—and in some cases, contribute to long-term energy affordability.

Canada is recognized globally as a leader in renewable energy. In fact, in 2023 Canada ranked as the fourth-largest global producer of renewable electricity in the world despite being only the 38th most populous countryFootnote 1Footnote 2.

What is Renewable Energy?

The Canada Energy Regulator (CER) considers energy to be renewable if it is derived from natural processes that can be replenished at a rate that is equal to, or faster than, the rate at which they are consumedFootnote 3. In other words, the resource is a sustainable source of energy. Renewable Energy in Canada examines the use of renewable energy—including bioenergy—for electricity generation, heat, transport, industrial processes, and other end uses. For this publication, electricity generated from bioenergy, geothermal, hydroelectricity, solar, and wind are considered renewable. This publication also considers solid, liquid, and gaseous biofuels to be renewable. Electricity from uranium-fueled nuclear generation is not considered renewable because it depends on finite fuel resources. However, it is considered non-emitting, as the generation process does not produce greenhouse gas (GHG) emissions.

Electricity is considered non-emitting if the process of generating electricity does not emit GHG emissions at the point of production. Non-emitting electricity could still have GHG emissions associated with the construction of the facility, the manufacturing of facility components, and the extraction and refining of any raw materials that are needed. This publication considers electricity generated from hydro, tidal, wind, solar, and nuclear to be non-emitting.

Renewable Energy in Canada provides historical data for renewable energy and selected information on planned renewable energy projects.

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In this Publication

This publication, Renewable Energy in Canada: Current Status and Near-Term Developments (Renewable Energy in Canada), looks at renewable energy from both a demand and supply perspective. The Renewable Energy in End-use Demand section estimates Canada’s renewable energy use by energy type and by sector. It then looks beyond electricity to explore Canada’s production and use of another form of renewable energy: biofuels. Each province and territory is profiled by exploring trends in generation, capacity, and planned or recently commissioned projects. In the Compare section, an interactive tool can be used to compare Canada’s electricity data across renewable energy sources and regions. The Data Sources section provides a detailed description of data sources, and the methods and processes used to collect, verify, and present the data. The data for each figure is available to download.

The Changing Landscape of Renewable Energy

Aerial view of a solar power plant near Travers Alberta, the largest solar farm in Canada.

Many factors are leading to growth of renewable energy in Canada: technological progress, cost, environmental changes associated with greenhouse gas emissions and evolving policy frameworks.

In the last 10 years, declining capital costs and continual improvements in energy efficiency have lowered the cost per megawatt (MW) of installed renewable electricity generation capacity. This is helping position both small and large-scale renewable energy projects as cost-competitive alternatives to conventional electricity sourcesFootnote 4Footnote 5. It is also improving the economic feasibility of projects in regions with limited conventional electricity generation alternativesFootnote 6. For example, large cost reductions for photovoltaic systems (PV) and wind turbines is substantially increasing new solar and wind capacity in different regions all across Canada, including remote communities.

The transition to more renewable energy is supported by federal and provincial measures, such as incentive programs, competitive procurement processes, clean fuel mandates, and various clean energy investment tax creditsFootnote 7. Historically and to this day, government policies play an important role in shaping Canada’s energy system. Recently, many jurisdictions adopted ambitious targets, supportive policies and regulatory frameworks, including targeted subsidies and competitive procurements, creating a more stable environment for capital investment in renewable energy.

Some renewable energy sources are variable (e.g., solar or wind electricity generation may depend on the sun shining or the wind blowing). To address these variable generation trends, a suite of operational tools, advanced technologies, and supportive policies has emerged. For example, there have been rapid advances in energy-storage and grid-modernization technologies. Battery energy storage systems (BESS), pumped storage hydroelectricity, and other large-scale storage can capture excess energy output for electricity dispatch at times of peak demandFootnote 8. Smart meters and demand-response programs boost real-time flexibility and efficiency in managing electricity grids. Curtailment of variable generation is also possible. In addition, non-variable sources of electricity generation, also known as dispatchable generation, help maintain stable electricity grids by producing power consistently, regardless of weather conditions. Hydroelectricity, which supplied 57.7% of Canada’s electricity in 2023, is largely dispatchable and can ramp up or down to smooth out variabilityFootnote 9.

Transmission tower standing tall at sunrise with a cloudy sky on a prairie landscape in Rocky View County Alberta.

Canada has a complex power system built on vast transmission and distribution networks. Interconnections between neighbouring provinces and United States (U.S.) states, facilitate balance beyond a single jurisdiction. When one region has excess generation output, excess electricity can flow to meet demand in another region. Pooling generation assets and consumers across a larger territory maximizes each region’s existing infrastructure and smooths out the variable renewable sources. Projects like the Maritime LinkFootnote 10 in Atlantic Canada illustrate ongoing efforts to strengthen regional ties and grid stability.

Bioenergy continues to evolve as a versatile renewable energy option. Canada has long produced solid biofuels like wood pellets, supported by its sustainable forestry sector. Gaseous biofuels have grown rapidly: over 500 renewable natural gas (RNG) facilities now supply North America's natural gas system. Falling production costs and efficiency gains have made advanced biofuels like renewable diesel and sustainable aviation fuel more viable. Bioenergy with carbon capture and storage (BECCS) is an emerging technology that produces energy with very low or negative emissions, particularly when applied to ethanol production and biomass-based electricity generation. While not yet operational at commercial scale in Canada, a handful of facilities are operating at scale internationally.

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About the CER

This publication falls within the CER’s Energy Information core responsibility. This responsibility is closely linked to the CER’s mandate and responsibilities under the Canadian Energy Regulator Act (CER Act),Footnote 11 which include advising and reporting on energy matters. Under the CER Act, the CER also has regulatory jurisdiction over some offshore renewable projects, pipelines crossing provincial or international boundaries, and international or designated inter-provincial power linesFootnote 12.

As Canada’s energy landscape evolves, Canadians need reliable information on the energy issues they face, including data and information about energy infrastructure near their communities. Energy information helps Canadians understand trends and developments in the energy sector today, as well as trends illustrating where the sector may go in the future.

How to Cite this Publication/Data

Canada Energy Regulator. (2025). Renewable Energy in Canada: Current Status and Near-Term Developments. Canada Energy Regulator Website. /en/data-analysis/energy-commodities/electricity/report/canadas-renewable-power/

Questions or comments?
Email energy-energie@cer-rec.gc.ca

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