Canada's Electricity Reversal: How a National Asset Became a Liability
For decades, Canada stood as a global leader in electricity generation, boasting abundant and affordable power that defined its economic identity. Today, that advantage has eroded dramatically, with the nation now emerging as a net importer of electricity in certain periods. This shift represents one of the most significant missed opportunities in Canada's recent economic history.
The Empty Threat That Revealed a New Reality
During heightened U.S.-Canada tariff tensions in early 2025, Ontario Premier Doug Ford made a bold declaration that would have carried substantial weight in previous decades. "If the United States escalates, I will not hesitate to shut the electricity off completely," Ford announced at a press conference, expressing sympathy for American consumers while asserting his willingness to take drastic action.
Historically, such a threat would have carried devastating consequences for millions of American households. Canada's robust reserves of hydroelectric and nuclear power once represented a critical energy source for neighboring states, with the potential for sudden disruption causing widespread brownouts or complete blackouts. American utilities would have scrambled to activate coal plants and backup systems to compensate for the loss.
However, the reality Ford confronted was strikingly different. By 2025, Canadian electricity exports accounted for less than one percent of U.S. power consumption, with Canada occasionally importing more electricity from the United States than it exported. Severing electrical connections between the two nations would have passed virtually unnoticed, highlighting how dramatically Canada's energy position had deteriorated.
A Legacy of Power Squandered
The story of Canada's electricity sector represents a particularly glaring example of broader energy policy failures over the past two decades. While Canada struggled to diversify its oil exports beyond the United States and delayed liquefied natural gas infrastructure development, the erosion of its electricity advantage stands as perhaps the most consequential missed opportunity.
Throughout much of the 20th century, Canada's defining economic characteristic was its access to plentiful, inexpensive electricity. Canadian engineers pioneered technologies essential for harnessing power from rivers and uranium, including the innovative CANDU nuclear reactor and advanced high-voltage transmission systems. This technological leadership, combined with abundant natural resources, allowed Canada to dominate energy-intensive global industries, most notably aluminum production.
From Quebec to British Columbia, Canada's muscular electricity sector became a source of national pride and economic strength. During the 1960s, the Quebec Liberal Party even adopted imagery of a clenched fist gripping lightning bolts as a powerful symbol of the province's hydroelectric achievements.
The Current Reality: Struggling to Meet Domestic Needs
Today, at precisely the moment when electricity has become one of the world's most critical commodities, Canada finds itself barely capable of maintaining its own electrical infrastructure. According to annual data from the U.K.-based Energy Institute's Statistical Review of World Energy, Canada's position in global per-capita electricity generation rankings has declined significantly.
This reversal represents more than just a statistical change—it reflects fundamental shifts in energy policy, infrastructure investment, and economic strategy. Where Canada once exported its surplus power with confidence, it now faces periods of dependency on imported electricity, particularly during peak demand seasons or when domestic generation faces challenges.
The transformation from electricity exporter to net importer raises serious questions about Canada's energy future, its industrial competitiveness, and its ability to capitalize on growing global demand for clean, reliable power. As nations worldwide accelerate their transitions to electrified economies, Canada's diminished electricity advantage represents both a warning and an opportunity for strategic reassessment.
