Canada’s Electricity Exports to U.S. Fall 11.7% as Imports From America Rise 8.6%: StatCan

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Canada is producing more electricity, but the country is sending less of it south of the border while purchasing more power from the United States.

New figures released by Statistics Canada on October 16, 2026, reveal that Canadian electricity exports to the U.S. declined 11.7% in 2025, while imports of American electricity increased 8.6%.

The shift highlights growing pressure on Canada’s energy system as drought conditions, rising domestic demand and regional supply challenges reshape a relationship traditionally dominated by Canadian electricity exports.

Ontario remained the country’s largest electricity exporter, while Quebec experienced a particularly sharp increase in American power purchases. British Columbia also continued relying heavily on cross-border electricity trading.

Despite the changes, Canada remained a net electricity exporter, although its surplus narrowed considerably.

Canada’s Electricity Exports Decline as American Imports Increase

Canada’s electricity trade relationship with the United States changed significantly in 2025, according to preliminary annual data published by Statistics Canada on October 16. Total Canadian electricity exports to the U.S. fell 11.7% compared with 2024, reaching 31.9 million megawatt-hours. Meanwhile, imports of electricity from American suppliers increased 8.6% to 25.5 million megawatt-hours. The figures demonstrate how a country with substantial electricity-generating resources can still become more dependent on imported power when regional conditions change. Canada remained a net exporter, but its advantage over the United States became considerably smaller.

The difference between electricity flowing out of Canada and electricity coming in narrowed to approximately 6.4 million megawatt-hours. That is important because electricity exports have historically provided revenue for hydroelectric-rich provinces, particularly Quebec and Manitoba. Statistics Canada attributed the changes partly to continuing drought-like conditions and increasing electricity demand. The new figures describe trading activity during 2025, not the first ten months of 2026, even though they were released this October.

Persistent Drought Continues to Reshape Canada’s Electricity Trade

Hydroelectricity, traditionally one of Canada’s greatest energy advantages, has become a source of vulnerability as changing weather conditions affect generation. Statistics Canada reported that national hydroelectric production increased 1.5% to 348.2 million megawatt-hours in 2025. Quebec’s hydroelectric generation increased 5.0%, while British Columbia recorded an 11.7% improvement. Despite those gains, several years of unusually dry conditions continued affecting reservoir levels and the amount of electricity available for export. Hydroelectric facilities depend on rainfall, snowfall and stored water, meaning their electricity production can fluctuate even when generating infrastructure remains unchanged.

The Canada Energy Regulator has previously documented how reduced precipitation disrupted electricity trading across Quebec, Manitoba and British Columbia. Utilities sometimes purchase American electricity to conserve reservoir water for periods when domestic demand is higher or market prices are more attractive. Such purchases can be a practical management decision rather than evidence of inadequate generating infrastructure. However, prolonged drought makes that balancing act increasingly difficult. Canada’s electricity trade figures demonstrate that abundant hydroelectric resources do not always translate into a consistent export surplus.

Ontario Remains Canada’s Largest Electricity Exporter Despite Growing Demand

Ontario continued leading Canada in electricity exports to the United States during 2025, shipping approximately 12.3 million megawatt-hours across the border. That represented nearly 39% of the country’s total electricity exports reported in Statistics Canada’s latest annual figures. British Columbia ranked second with 6.6 million megawatt-hours, followed by Quebec at 4.2 million. Ontario’s position reflects its substantial electricity infrastructure and connections to neighbouring American markets, particularly New York, Michigan and Minnesota. However, its export leadership comes as the province faces increasing pressure to supply electricity to homes, businesses and major industrial facilities.

According to Ontario’s Independent Electricity System Operator, provincial electricity demand increased approximately 4.4% in 2025 to 145.6 terawatt-hours. The province recorded a peak demand of 24,862 megawatts on June 24, its highest summer peak in 12 years. Hot weather, winter conditions and planned nuclear outages complicated electricity management. Ontario also trades electricity with neighbouring Canadian provinces, so its broader system-wide trading figures differ from Statistics Canada’s U.S.-only export totals. The province’s experience illustrates how an electricity exporter can simultaneously face growing challenges meeting domestic demand.

Quebec’s American Electricity Imports Surge Despite Its Hydroelectric Resources

Quebec experienced one of the most significant changes in cross-border electricity trading during 2025. Statistics Canada reported that the province imported 7.5 million megawatt-hours of electricity from the United States, an increase of approximately 3.6 million megawatt-hours compared with the previous year. That put imports at nearly twice their 2024 level. Meanwhile, Quebec exported just 4.2 million megawatt-hours to American customers, meaning it purchased approximately 3.3 million more megawatt-hours from the United States than it sold across that border. The contrast is striking for a province traditionally associated with enormous hydroelectric exports.

Quebec still generated more hydroelectricity than any other province, accounting for approximately 52% of Canada’s total hydroelectric production in 2025. Yet Hydro-Québec has acknowledged that persistently low runoff since 2023 has required careful management of its 28 major reservoirs. The utility reported record electricity sales within Quebec of 184.9 terawatt-hours during 2025, adding pressure to an already complicated supply situation. Hydro-Québec also buys electricity when market conditions are favourable to conserve its water reserves. The increase in American imports therefore reflects both supply management and changing demand, rather than automatically indicating a province-wide electricity shortage.

British Columbia Remains the Biggest Importer, but Its Reliance Decreases

British Columbia remained Canada’s largest importer of American electricity in 2025, purchasing approximately 10.2 million megawatt-hours from the United States. However, that represented a 29.9% decline compared with 2024, suggesting a meaningful improvement in provincial supply conditions. British Columbia also exported 6.6 million megawatt-hours to American customers, leaving it with net imports of approximately 3.6 million megawatt-hours from the United States. Meanwhile, provincial hydroelectric production increased by 6.1 million megawatt-hours, equivalent to an 11.7% year-over-year improvement. The changes contrast with Quebec’s sharp increase in imported electricity.

British Columbia’s trading relationship with the American Pacific Northwest is particularly flexible. BC Hydro and its trading operations can purchase electricity when prices are relatively low, allowing water to remain stored in reservoirs for later use. That electricity can become especially valuable when demand increases or wholesale market prices rise. The Canada Energy Regulator has identified these operational decisions as an important reason British Columbia frequently imports substantial quantities of electricity. The province’s experience demonstrates that cross-border purchases can support reliable electricity service and sensible financial management, even when domestic generating resources remain extensive.

Canada’s Total Electricity Generation Increases Despite Declining Exports

Canada’s electricity production increased during 2025, even as exports to the United States declined. Statistics Canada’s preliminary annual figures show that total electricity generation rose 2.9% to 639.5 million megawatt-hours, an increase of 17.8 million megawatt-hours compared with 2024. Renewable energy sources accounted for approximately 64.1% of production, with hydroelectricity remaining the dominant contributor at 54.5%. Wind power generated 8.2% of the country’s electricity, while solar accounted for another 1.4%. These figures demonstrate that Canada continued expanding its overall electricity supply despite challenges affecting individual provinces and generating facilities.

The increase is important because it shows that declining exports do not necessarily mean the country’s power plants are producing less electricity. More generation can be absorbed by domestic households, manufacturers, commercial buildings and other electricity users before surplus supplies reach international markets. Regional differences also matter. A province experiencing strong hydroelectric production cannot automatically transfer all its excess electricity to another province without sufficient transmission infrastructure. Canada’s electricity system therefore depends not only on generating capacity but also on where electricity is produced, where demand is growing and how effectively different regional networks are connected.

Electricity Sales to Canadian Consumers Rise as Energy Demand Grows

Domestic electricity demand is another important factor behind Canada’s changing trading relationship with the United States. Statistics Canada reported that electricity delivered to final consumers increased 2.5% in 2025, reaching approximately 516.3 million megawatt-hours. The total dollar value of electricity sales climbed 5.3% to C$53.5 billion. Residential electricity sales revenue increased 6.0%, while revenue from agricultural customers grew 5.7% and mining and manufacturing customers recorded a 4.9% increase. These figures show that Canadian electricity providers were serving a larger domestic market while collecting more revenue from consumers.

However, rising electricity sales revenue does not automatically mean every Canadian household experienced a corresponding increase in its electricity rate. Revenue depends on consumption, customer mix and electricity pricing. The Canada Energy Regulator has documented substantial differences in household electricity costs across the country. Its March 2026 comparison estimated that a household using 1,000 kilowatt-hours monthly could face costs ranging from approximately C$83 to C$375, depending on its province or territory. Electricity generation costs, distribution infrastructure, regulatory policies and local energy resources all influence what consumers ultimately pay.

Thermal and Nuclear Generation Help Maintain Canada’s Electricity Supply

Canada’s growing reliance on a diversified electricity system became particularly visible in 2025. Statistics Canada reported that thermal electricity generation increased 2.9% to approximately 229.7 million megawatt-hours. Ontario accounted for the largest increase, adding 6.1 million megawatt-hours of thermal generation, representing a provincial increase of 5.6%. Thermal generation is a broad category that includes nuclear generation and electricity produced using combustible fuels. It should therefore not be interpreted entirely as fossil-fuel electricity. The increase reflects the importance of multiple generating technologies when hydroelectric supply is constrained or demand rises.

Nuclear generation also played an important role. Canada’s nuclear electricity production increased 0.9% to 81.5 million megawatt-hours in 2025. New Brunswick recorded an 80.6% recovery after the Point Lepreau generating station resumed operations following maintenance during 2024. Ontario, by contrast, experienced a 0.8% decline in nuclear generation. These developments demonstrate how scheduled maintenance, generating-station availability and different technologies influence electricity supply. For electricity planners, maintaining reliable service requires balancing hydroelectric production with nuclear, renewable and other sources while ensuring sufficient capacity during periods of high demand.

America’s Power Grid Still Depends Heavily on Canadian Electricity

Despite Canada’s declining electricity exports in 2025, the United States remains heavily dependent on Canadian electricity imports. According to the Canada Energy Regulator, Canada supplied approximately 81.3% of all electricity imported by the United States during 2025. The two countries are connected through 86 international electricity transmission lines, creating an extensive network that allows power to move between Canadian provinces and neighbouring American states. These connections provide operational flexibility, particularly when electricity demand increases unexpectedly or generating facilities experience interruptions.

The financial relationship remains significant. Using Canadian international merchandise trade data, the regulator estimated that electricity exports to the United States were worth approximately C$3.3 billion in 2025, while electricity imports from American suppliers were valued at approximately C$1.4 billion. Those trade values come from a different statistical compilation than Statistics Canada’s newly released annual supply-and-disposition figures. Beyond the revenue involved, cross-border electricity trading supports the reliability of interconnected power systems. American states can purchase Canadian hydroelectricity when it is available, while Canadian utilities can access American generation when provincial supply conditions become less favourable. This mutual dependence remains important despite broader political and trade tensions.

Newer 2026 Electricity Data Suggest Some Recovery Is Already Underway

Although the annual figures released October 16 highlight a difficult year for Canadian electricity exports, more recent monthly statistics point to improving conditions in parts of the country. Statistics Canada reported that electricity exports to the United States jumped 80.6% year over year in July 2026, reaching 6.0 million megawatt-hours. That was the highest monthly export volume since August 2022. At the same time, imports from American suppliers dropped 45.3% to 1.2 million megawatt-hours. The figures represent a significant reversal from the broader trading pattern observed during 2025.

Improving hydroelectric conditions were central to that recovery. National hydroelectric generation increased 11.8% in July 2026, reaching 29.7 million megawatt-hours. Manitoba recorded an especially strong year-over-year increase of 122.4%, while British Columbia’s hydroelectric output climbed 40.4%. Both provinces benefited from improved drought conditions compared with the previous year. However, one strong summer month does not guarantee a lasting return to Canada’s historical electricity export levels. Reservoir conditions, domestic consumption and seasonal demand will continue shaping electricity flows. For Canadian utilities and policymakers, the latest data reinforce the importance of maintaining dependable generating capacity, managing water resources carefully and preserving reliable connections with American electricity markets.

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