Wiktor Wise
Many Canadians refer to electricity as hydro, which is short for hydroelectricity. This is because most of the electricity in Canada is generated using hydro dams. The Quebec electricity grid, for example, is majorly based on hydropower, where they use river currents and a system of dams to generate electricity. Hence, the company is called 'Hydro-QC'.
| Characteristics | Values |
|---|---|
| What Canadians call electricity | Hydro |
| Why they call it Hydro | Short for hydroelectricity, which is electricity generated by water turning a turbine |
| Percentage of electricity generated by hydropower | 60% |
| Canadian provinces that use Hydro in the names of their electrical utility companies | Quebec, Ontario, Manitoba, and BC |
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What You'll Learn
Why do Canadians call electricity 'hydro'?
Many Canadians refer to electricity as "hydro", which is short for "hydroelectricity". This is because a significant proportion of Canada's electricity is generated using hydropower, with water turning a turbine. In 2007, Canadian per capita electricity consumption was among the highest in the world, with a yearly average of 17MWh. In 2018, electricity generation accounted for 9% of Canada's emissions, a 32% decrease from 1990.
The use of the term "hydro" to refer to electricity is particularly common in certain provinces, such as Quebec, Ontario, Manitoba, and British Columbia (BC). In these provinces, the electrical utility companies often have "hydro" in their names, such as "Hydro-QC" in Quebec and "Hydro One" or "Ontario Hydro" in Ontario. The term "hydro bill" is also commonly used to refer to the electric bill, which can be confusing for people who are not familiar with the term as "hydro" literally means water.
The use of hydropower to generate electricity has a long history in Canada, dating back to the late 19th century with the development of the Canadian Niagara Falls. After World War I, the provincial utilities were created, with a focus on rural electrification and hydroelectric development. Today, hydropower provides 60% of Canada's electricity generation, and renewable energy sources, including hydropower, provide about 67% of Canada's total energy supply.
While the use of the term "hydro" to refer to electricity is widespread in Canada, it is not universal. Some Canadians, particularly those from provinces other than Quebec, Ontario, Manitoba, and BC, may not use this term and may refer to their electric bills simply as "power" or "energy" bills. Additionally, with the diversification of Canada's electricity sources, some have questioned the continued use of the term "hydro" when electricity is no longer completely generated by water. However, the name has stuck, and it is what many Canadians are used to.
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Where does Canada's electricity come from?
In Canada, electricity is commonly referred to as "hydro", short for hydroelectricity, as most of the country's electricity is generated through hydropower. Canada is the world's second-largest producer of hydroelectricity, with hydropower accounting for 59.3% to 60% of its electricity supply. The country's hydropower installed capacity is over 78 gigawatts, with favourable geography and hydrography in Quebec, British Columbia, Ontario, Labrador, and Manitoba.
The remainder of Canada's electricity is produced from various sources, including nuclear power, natural gas, wind, coal, biomass, solar, and petroleum. In 2018, nuclear energy accounted for 15% of Canada's electricity, with the country being the second-largest producer and fourth-largest exporter of uranium globally. Canada has developed its own nuclear reactor technology, CANDU, and its uranium is used only for peaceful purposes under its nuclear non-proliferation policy.
Canada has been taking steps towards clean power and low-carbon fuels to meet its climate goals. In 2022, 70% of the country's electricity came from renewable sources, and 82% came from non-greenhouse gas (non-GHG) emitting sources. Wind and solar photovoltaic energy are the fastest-growing sources of electricity in the country, with solar power capacity reaching about 3.4 GW in 2021, mostly in Ontario. Additionally, the development of biofuels and the increasing popularity of electric vehicles contribute to reducing the climate impact of transportation.
The electricity sector in Canada has been evolving, with a shift from vertically integrated electric utilities to market liberalization and unbundling of generation, transmission, and distribution services. Alberta was the first province to implement a deregulated electricity market in 1996, and Ontario has since moved towards a hybrid model. The Canadian electricity industry plays a key role in supporting the country's vision to achieve carbon neutrality by 2050.
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How does Canada's electricity sector compare to the US?
In Canada, electricity is often called "hydro" in many regions, which is short for hydroelectricity. This is because most of the electricity generated in Canada comes from hydro dams. However, due to the country's population and energy demands, other sources of power are also used.
Canada's electricity sector differs from that of the US in several ways. Firstly, Canada has a more diverse energy mix than the US, with a significant portion of its electricity generation coming from hydroelectric power, as well as other renewable sources such as solar and geothermal. In contrast, the US has a higher proportion of electricity generation from fossil fuels, such as coal and natural gas, although this is changing with the increasing adoption of renewable energy sources.
Another difference is the structure of the electricity markets in the two countries. In Canada, each province operates its own electricity market, with some provinces having a hybrid system, such as Ontario, and others having a fully deregulated market, like Alberta. In the US, the electricity sector is more integrated across states, with a combination of regulated and deregulated markets depending on the region.
In terms of trade, Canada and the US have a long history of energy cooperation, with Canada being the largest supplier of energy to the US. In 2020, Canada supplied 93% of the US's electricity imports. However, there have been fluctuations in this trade relationship, with the US increasing its electricity exports to Canada in recent years, particularly during drought conditions in Western Canada that impacted hydropower generation. The two countries are also working together to invest in new technologies, such as carbon capture and renewables, to shape the future of the energy sector.
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What are the electricity markets in Canada?
In Canada, electricity is often referred to as "hydro", short for hydroelectricity, as most of the country's electricity is generated through hydro dams. However, due to the population's high energy demands, other sources of power are also used.
The electricity sector in Canada is organized along provincial and territorial lines, with each province having jurisdiction over electricity generation, intra-provincial transmission, and distribution. The federal government has authority over some aspects of the nuclear generation sector, electricity exports, and designated international and inter-provincial transmission lines. Most provinces and territories have government-owned utilities that generate and distribute electricity, with some provinces also supported by smaller privately-owned utilities or independent power producers.
Some provinces, such as Alberta and Ontario, have competitive markets for electricity generation and distribution, with broad participation by privately-owned utilities. Alberta was the first Canadian province to implement a deregulated electricity market in 1996, following the adoption of the Electric Utility Act. In Ontario, the market is a hybrid, with the Ontario Power Authority (now merged with the IESO) "contracting for supply, integrated system planning, and regulated pricing for much of Ontario's generation and load".
Canada exported about 9% of its electricity output to the United States in 2009, while also importing 18 TWh. While Canadian electricity constitutes a relatively small part of the overall US market, it represents a significant share of the power consumed in key markets such as New England, New York State, Ohio, Michigan, Minnesota, and the Pacific Northwest.
In terms of electricity sources, moving water (hydro) provides 60% of Canada's electricity generation, while nuclear energy accounted for 15% in 2018. Canada is the second-largest producer and fourth-largest exporter of uranium in the world and has developed a unique nuclear reactor technology called CANDU. Renewable energy sources currently provide about 67% of Canada's total energy supply.
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What is the average electricity consumption in Canada?
Canada is one of the world's largest consumers of electricity, and in 2020, it was the fourth-largest per capita consumer of electricity. Canada's primary energy use in 2021 was 12,419 petajoules (PJ). In 2020, the total end-use energy demand in Canada was 11,059 PJ, with the industrial sector accounting for 53% of total demand, followed by transportation at 20%, residential at 14%, and commercial at 13%.
In 2020, the annual electricity consumption per capita in Canada was 14.6 megawatt-hours (MWh). Quebec had the highest annual electricity consumption at 22.9 MWh per capita, while Nunavut had the lowest at 6.1 MWh per capita.
The average Canadian household uses 11,135 kWh of electricity per year, with Quebec having the highest consumption per capita in 2020. However, this varies across provinces, with the average household in Alberta using 7,200 kWh per year, and the average Ontario household using about 9,500 kWh of electricity per year.
In 2019, 41% of Canadian households relied on electricity for heating, and space heating accounted for about 63% of total annual household energy consumption. Additionally, in 2021, 78% of residential energy consumption and 62% of commercial and institutional energy consumption were used for space and water heating.
Frequently asked questions
Many Canadians call electricity "hydro", which is short for "hydroelectricity", as most of the electricity generated in Canada comes from hydro dams.
The name 'hydro' is a holdover from when electricity was generated using water.
Quebec, Ontario, Manitoba, and BC (covering almost 28 million Canadians) all use “hydro” in the names of their electrical utility companies.
