Canada has long been recognized for having one of the cleanest electricity systems in the world, thanks largely to massive hydroelectric dams and nuclear power. But a major new international report says the future of electricity will be driven by wind and solar energy, and Canada risks losing ground if it does not move faster.
The latest global review of electricity generation found that renewable energy sources met all new electricity demand in 2025, effectively stopping the growth of fossil fuel-powered generation worldwide. Solar energy in particular is expanding at an unprecedented pace because it is fast to build, increasingly affordable, and capable of transforming national power systems in just a few years.
While many major economies are rapidly scaling up renewable projects, Canada’s transition has been slower. Wind and solar still account for less than one-tenth of Canada’s electricity generation, far below the average among other leading industrialized nations.
Global Renewable Energy Growth Reaches a Turning Point
According to the international review, clean energy sources generated enough electricity in 2025 to satisfy all additional global demand. That milestone prevented further growth in electricity generation from coal, oil, and natural gas.
Solar power emerged as the fastest-growing energy source worldwide. Improved manufacturing, falling installation costs, and rapid deployment timelines have made solar one of the most competitive forms of electricity generation on the planet.
Wind power also continued to expand steadily, while energy storage technology advanced quickly. Batteries became significantly cheaper in 2025, allowing electricity grids to store renewable power for use during periods without sunlight or strong wind conditions.
The Government of Canada has already identified renewable electricity as a key part of the country’s long-term climate and economic strategy. Federal information on clean electricity initiatives and energy transition policies is available through Natural Resources Canada.
Canada’s Electricity Grid Is Clean, But Challenges Are Emerging
Canada’s electricity system remains among the least carbon-intensive in the world. Hydroelectricity alone provides roughly half of the country’s electricity generation, while nuclear power also supplies substantial amounts of non-emitting electricity.
Because of these resources, Canada produces a far smaller share of electricity from fossil fuels than countries such as the United States.
However, experts warn that relying heavily on hydroelectricity may not be sustainable forever. Drought conditions in several regions have already reduced water flows and hydroelectric production in recent years, exposing vulnerabilities in systems that depend heavily on rivers and reservoirs.
Federal government information about Canada’s electricity mix and clean energy future can be found through Canada Energy Regulator.
Climate Change Is Affecting Hydropower Reliability
Hydroelectric generation depends on stable precipitation and river systems. As climate change intensifies droughts and alters seasonal water patterns, electricity production from dams can fluctuate more dramatically.
This reality is increasing pressure on governments and utilities to diversify electricity generation with renewable sources like solar and wind.
Wind turbines and solar farms can often be developed much faster than large hydroelectric facilities or fossil fuel projects. In many cases, solar projects can move from approval to operation within only a few years.
Canada Lags Behind Other G7 Nations on Wind and Solar
Despite its clean grid, Canada remains behind many advanced economies when it comes to wind and solar development.
Wind and solar combined account for less than nine per cent of Canada’s electricity generation. Across the G7, the average is about 19 per cent.
The United States has moved much faster in expanding renewable electricity generation, with wind and solar supplying a far larger share of the national grid.
Industry analysts say Canada’s slower pace reflects years of limited large-scale renewable procurement, inconsistent provincial policies, and lengthy regulatory processes.
Still, momentum is beginning to build.
Related: Canada Faces Mounting Energy Pressure as IEA Chief Warns Global Crisis Could Soon Hit Home
Federal Clean Electricity Regulations Aim for Major Shift
Canada’s federal government has introduced Clean Electricity Regulations designed to gradually transition the country toward a net-zero electricity system by 2050.
The regulations are expected to push provinces and utilities to invest more aggressively in renewable energy, energy storage, and non-emitting generation technologies over the coming decades.
Details on the federal regulations and implementation plans are available through Environment and Climate Change Canada.
Electricity Demand Is Expected to Surge
Experts project that electricity demand in Canada could rise dramatically over the next 25 years as transportation, industry, and home heating increasingly shift away from fossil fuels.
Electric vehicles, artificial intelligence infrastructure, data centres, battery manufacturing, and industrial electrification are all expected to place major new demands on power grids.
Ontario alone is forecasting massive growth in electricity consumption by 2050, creating urgency around expanding generation capacity quickly.
Ontario, Quebec, and British Columbia Accelerate Renewable Procurement
Several provinces have recently launched major renewable energy procurement programs aimed at rapidly increasing clean electricity generation.
Ontario’s Independent Electricity System Operator has approved significant new wind, solar, and battery storage projects as the province prepares for rising energy demand.
Quebec and British Columbia have also expanded renewable energy planning and procurement efforts in recent years.
Federal support programs for renewable electricity and grid modernization are outlined through Natural Resources Canada Clean Energy Programs.
Indigenous Partnerships Becoming Central to New Projects
Many of Canada’s largest upcoming renewable developments include partnerships with First Nations communities.
These partnerships are increasingly viewed as essential for long-term project success, economic participation, and local support.
Large solar projects in Ontario involving Indigenous communities are expected to become some of the province’s most important renewable electricity developments over the next decade.
Alberta’s Renewable Boom Faces New Uncertainty
Alberta has emerged as Canada’s leader in large-scale solar development, hosting some of the country’s largest solar farms and renewable investments.
However, provincial restrictions and temporary pauses on renewable project approvals have created uncertainty for developers and investors.
Some planned projects have already been delayed or cancelled, raising concerns about whether Canada can maintain enough momentum to meet future electricity needs.
Federal information on renewable energy technologies and electricity systems is available through Natural Resources Canada Renewable Energy Resources.
Solar Power Is Becoming Faster and Cheaper Worldwide
One of the clearest trends highlighted in the global review is the extraordinary speed at which solar power is scaling internationally.
Global solar generation increased dramatically in 2025 as installation costs continued to decline. Improvements in manufacturing efficiency and battery storage have also made renewable systems more reliable and practical for large-scale electricity networks.
Battery prices experienced another major drop in 2025, helping utilities store renewable electricity for use during periods of low generation.
This combination of lower costs, shorter construction timelines, and expanding storage capacity is transforming electricity markets around the world.
Canada Still Has Time to Catch Up
Despite currently lagging behind many peers, experts believe Canada can still rapidly expand wind and solar development over the next decade.
Unlike large fossil fuel infrastructure projects that can take more than a decade to complete, solar and wind facilities are often much quicker to build.
That speed gives Canada an opportunity to scale renewable electricity generation rapidly if governments, utilities, and investors align around long-term planning and procurement.
The federal government’s broader clean energy strategy and investment framework can be explored through Canada’s Clean Energy Future.
A New Era for Canada’s Electricity System
Canada’s electricity system is entering a period of historic transformation. Hydropower and nuclear energy have provided the country with a strong foundation for decades, but growing electricity demand and climate pressures are reshaping the future of the grid.
Wind, solar, and battery storage are increasingly becoming the technologies driving global electricity growth.
The countries that move quickly to expand these systems could gain major economic advantages through lower energy costs, cleaner industries, and stronger energy security.
For Canada, the challenge is no longer whether renewable energy will dominate the future. The challenge is whether the country can build fast enough to keep pace with the rest of the world.
