Canada stands out as one of the world’s largest electricity generators and as a leader in clean electricity generation. But to get to this position, Canadian electric utilities have undergone a dramatic transformation over the past decade.
Join Carlos A. Murillo for a discussion of the changes underway for Canada’s electrical utilities and a five-year outlook on the industry. This webinar is based on the newly released Canadian Industrial Outlook for Canada’s Electric Utilities Industry, published in the Summer of 2017, and includes five-year forecasts for the industry’s output, employment, prices, investment levels, trade, and financial performance metrics, among others.
Non-hydroelectric renewable sources have been increasingly adopted and generation from fossil fuels are in decline across Canada. Investment by electric utilities has increased by 75 per cent in the past decade, but Canada still need significant levels of investment to build a more modern and cleaner generation fleet. Higher prices are in turn needed to support increasing investment requirements and to help offset the rapid cost increases that have been prevalent across the industry.
Industry revenues are expected to increase at about half the pace registered in the past half-decade. Much of that revenue growth is fuelled by higher electricity costs for users, although prices vary by province. To limit price increases, Canada’s electric utilities will need to work hard to limit cost growth between 2017 and 2021.
The role of trade in electricity generation is growing. Although close to 90 percent of electricity generated in Canada is used domestically, net exports to the U.S. doubled between 2007 and 2016, while interprovincial flows remained relatively steady.