Canadian power generation grows in October despite drought pressure

Canadian electricity generation rose slightly in October from the same month in 2023 partly from increased wind generation, despite drought conditions pressuring hydropower generation, according to a Statistics Canada report released Dec. 24.

Overall electricity generation in the country climbed 2.4% in October from the same month a year ago, up about 1.1 TWh, according to an analysis of the Statistics Canada report.

Electricity generated from wind power turbines drove the hike in generation, with wind power generation surging 24%, 0.8 TWh in October from the same year-ago month. Solar generation also soared 53% year on year to 417 GWh in October 2024.

Electricity generation from combustible fuels like coal and natural gas climbed 7% to 10.7 TWh in October, another key driver in the increased generation. Statistics Canada said nuclear steam turbine generation slid 7% to 6.6 TWh.

Drought conditions are continuing to put pressure on Canada's hydroelectricity, which takes up 60% of the country's electricity generation.

Hydropower generation from hydraulic turbines dipped about 0.7% in October to 24.9 TWh. Overall annual hydraulic turbine generation fell 8% year on year from 2022 to 2023.

The British Columbia Hydro and Power Authority reported a record drought in 2023 that caused a significant decline in electricity exports, according to the US Energy Information Administration.

"British Columbia's total electricity exports to the United States, which include exports from BC Hydro, declined by 45% in 2023 from 2022," the EIA said. "From 2022 to 2023, exports from British Columbia to California declined 75%."

Data centers and demand

Power demand is rising in Canada, with provinces identifying new data centers as one of the key drivers.

The country currently has 239 active data centers, according to the Canada Energy Regulator. Ontario, with 105 data centers, leads the country by far, with Quebec second with 57, and British Columbia following with 35.

Andrew Dow, senior manager of public relations at Ontario's Independent Electricity System Operator, said data centers that are looking to connect to the grid is one of the largest drivers of future demand. He also mentioned electrification of transportation and industry.

IESO projects data centers will consume 8.4 TWh, or about 4% of projected electricity demand, in the province by 2035.

International Energy Agency global data showed that data centers around the world consumed 460 TWh in 2022, which is equal to 71% of Canada's electricity generation in a year. The IEA said its global data center consumption estimates are expected to double by the end of 2026.