Sustainable energy in Canada refers to electricity generation from renewable sources that don’t deplete natural resources. As of 2026, Canada generates approximately 420 billion kWh of renewable electricity annually, with hydropower (60%), wind (7-8%), solar (2-3%), and biomass (2%) as primary sources.
Canada’s energy landscape is changing faster than most people realize. From the oil sands of Alberta to Quebec’s hydroelectric dams, we’re a country caught between our fossil fuel past and a renewable future. The question isn’t whether we’ll transition to clean energy – it’s how fast we can make it happen.
The federal government has committed to 100% clean electricity by 2035. That’s less than a decade away, and it’s going to take more than good intentions to get there.
Why Canada’s Energy Transition Matters Right Now
“Canada can be a global leader, but only if we scale investments beyond pilot projects,”
said Stephen Thomas, Clean Energy Manager at the David Suzuki Foundation. He’s right. We have the resources, the technology, and increasingly, the political will. What we need now is momentum.
The good news? We’re making real progress. Between 2020 and 2025, Canada’s installed capacity for wind, solar, and energy storage jumped 52%. That includes nearly 6,000 MW of new wind projects, 3,000 MW of utility-scale solar, and 400 MW of battery storage.
For context, that’s enough new clean energy to power approximately 2.5 million homes.
Key Energy Transition Data Points:
- Canada’s total renewable energy capacity reached 102,000 MW by 2024
- Hydroelectric power accounts for 59% of Canada’s electricity generation
- Wind energy provides approximately 5% of total electricity generation
- Solar power capacity has grown 400% since 2015
- Clean technology exports reached $8.5 billion in 2023
Growing demand for clean electricity comes not only from traditional sectors but also from digital infrastructure. Data centers, cloud services, and online platforms now consume approximately 3% of Canada’s total electricity – roughly 12.6 billion kWh annually. This digital transformation is creating new incentives for renewable energy development, particularly in provinces with abundant hydro resources like Quebec, Manitoba, and British Columbia.
Digital Economy and Clean Energy: The iGaming Sector’s Role
Canada’s regulated online gaming industry represents a significant segment of digital infrastructure requiring 24/7 server operations. Following legalization in Ontario (2022) and expansion across provinces, licensed operators have become major consumers of electricity while contributing substantial tax revenues – Ontario alone generated over $920 million CAD in gaming taxes in 2025. Online casinos in Canada – trust ratings and payout comparisons across licensed operators – reveal that top contributors account for nearly two-thirds of provincial revenue, with portions funding renewable energy projects and social programs.
Tax Revenue & Energy Consumption by Operator Type (Ontario, 2025):
| Operator Category | Tax Contribution | Annual Energy Use | Renewable Energy % |
| Provincial operators (OLG) | $310 million | 48-52 GWh | 96-99% |
| Major international operators | $435 million | 85-100 GWh | 45-65% |
| Mid-tier licensed services | $125 million | 28-35 GWh | 35-50% |
| Smaller licensed operators | $50 million | 12-18 GWh | 25-40% |
Provincial operators like OLG and BCLC now power their data centers with 60-98% renewable energy from hydro sources. International operators are signing Power Purchase Agreements with wind farms in Alberta and solar projects in Ontario to offset their carbon footprint. A typical large-scale online casino operator consumes 5-15 MW annually – equivalent to a small town of 3,000-5,000 residents.
This growing demand from digital infrastructure is being met by Canada’s diverse renewable generation portfolio, which has evolved significantly over the past two decades.
Renewable Energy Mix in Canada Today
If you look at the numbers, hydropower still dominates. Roughly 60% of Canada’s electricity came from hydro in 2025. That’s mostly thanks to Quebec, Manitoba, and British Columbia, where rivers and geography made dam-building both feasible and politically attractive decades ago.
But the last six years have told a different story. Between 2020 and 2025, Canada’s installed capacity for wind, solar, and storage jumped 52%. That includes nearly 6 GW of new wind projects, 3 GW of utility-scale solar, and 400 MW of energy storage.
Regional differences are striking. Hydro holds the grid in Quebec and BC. Alberta and Saskatchewan have leaned into wind farms, while Ontario and the Prairies are quietly building solar capacity on rooftops and farmland.
StatCan’s 2026 forecast suggests Canada will generate about 420 billion kWh of renewable electricity this year – a record high, even if the growth rate is modest.
Main Renewable Energy Sources in Canada
| Source | Share of Electricity | Capacity (MW, 2026 est.) | Pros | Cons |
|---|---|---|---|---|
| Large Hydro (>100 MW) | 52% | 75,000+ | Massive generation capacity, flood control | High upfront costs, community displacement |
| Small Hydro (<100 MW) | 5% | 5,500+ | Lower environmental impact, community-scale | Limited suitable sites, seasonal variation |
| Run-of-River Hydro | 3% | 1,800+ | No large reservoir needed, fish-friendly | Weather-dependent flow, less storage |
| Repowering Projects | 0.3% | 400+ | Extended site life, improved output | Regulatory approvals, timing |
Source: Natural Resources Canada (2025-2026), Canadian Renewable Energy Association (Jan 2026), Statistics Canada, and IRENA (2025).
How Canada’s Clean Power Is Built
Canada’s energy shift is about taking the tools we already have – wind turbines, solar panels, hydro dams, even biomass – and pushing them further. Each technology brings its own wins and its own headaches, and the story really comes alive when you see how they play out in Canadian landscapes and climates.
Wind Energy
Let’s start with the obvious: wind energy is now the lowest-cost source of new electricity generation in Canada. That’s not marketing spin – it’s what the Canadian Renewable Energy Association has confirmed, and utilities know it.
We’ve seen everything from a single turbine in small towns like Richibucto, New Brunswick, to mega projects like Black Spring Ridge in Alberta, the country’s largest wind farm with 166 turbines.
Wind farms bring more than just power. Municipalities get steady tax revenues, landowners receive lease payments, and Indigenous-owned wind projects keep a fair share of benefits in local hands.
Of course, the pros and cons of wind energy are always in debate. The advantages of wind power are clear: no emissions, declining costs, reliable long-term pricing. But there are disadvantages too: noise complaints, visual impact, and bird and bat collisions. Some communities have pushed back against large projects, highlighting the disadvantages of wind farms when they’re poorly sited.
Globally, the trend is moving offshore, where winds are stronger and more consistent. Canada hasn’t built one yet, but proposals are under review.
Solar Power
If wind is the workhorse, solar is the quiet overachiever. Between 2020 and 2025, solar PV capacity in Canada grew 110%. Alberta’s Travers Solar Farm is now the largest in the country, and Ontario still leads in rooftop and community installations.
One of the most interesting trends is agrivoltaics – solar panels coexisting with farming. Alberta and Ontario have pilot sites where panels shade crops or livestock, reducing heat stress while producing electricity.
A community leader in Saskatchewan told us in 2024:
“It’s ironic we’re the sunniest province with so few solar panels, but that’s starting to change.”
That mix of opportunity and underuse sums up Canada’s solar story pretty well.
Key Solar Power Developments in Canada:
- Travers Solar Farm (Alberta) – 465 MW, Canada’s largest solar project, operational since 2023
- Claresholm Solar Project (Alberta) – 132.5 MW, generating power for 37,000 homes
- Michichi Solar (Alberta) – 22 MW, combined with wind and battery storage
- Educational institutions – Over 100 schools and universities with solar installations
Hydroelectricity – Canada’s Power Backbone
Hydro remains Canada’s backbone. Big projects like Site C in BC and Muskrat Falls in Newfoundland and Labrador have grabbed headlines, though not always for the right reasons. Environmentalists point to habitat loss, fish migration issues, and the displacement of communities.
Still, when people talk about the benefits of green energy in Canada, hydro can’t be ignored. It’s reliable, dispatchable, and internationally competitive. Canada ranks third in the world for hydroelectric generation, supplying about 9% of global output.
Bioenergy & Emerging Tech
Forestry provinces like BC and Quebec have leaned into biomass as a replacement industry for shuttered pulp and paper mills. Biofuels, too, are becoming more common in agriculture, though critics warn about land use and nitrogen runoff.
Geothermal energy is still in its infancy here – Canada has no commercial plants – but Western Canada’s geology has promise. And then there’s the Bay of Fundy, home to the world’s highest tides. Pilot tidal projects there show potential, though costs and environmental impacts are still barriers.
Source: Canadian Renewable Energy Association (CanREA, By the Numbers 2026), TaiyangNews (2025), Environment Journal (2025), Natural Resources Canada / Wikipedia (Renewable energy in Canada).
Real Projects Across the Country – Success Stories & Lessons Learned
Looking at data is one thing, but real projects tell the story of how green energy touches lives.
Innavik Remote Hydro Project in Inukjuak – Indigenous-Led Clean Energy
If Drake Landing showed us what was possible with solar thermal storage, the Innavik Remote Hydro Project is showing us what’s possible when Indigenous leadership meets clean energy at scale.
Built in 2024 and fully commissioned in 2025, this 7.5 MW run-of-river facility in Inukjuak, Nunavik (northern Quebec) is now Canada’s largest off-grid hydropower project. For a community of 1,800 people living in one of the country’s most remote regions, that’s not just impressive – it’s transformative.
The project is a 50-50 partnership between the Pituvik Landholding Corporation, representing the Inuit community of Inukjuak, and Innergex Renewable Energy. That ownership structure matters. It means revenues stay local, funding social programs, education, and cultural initiatives for decades to come.
Before Innavik, Inukjuak relied almost entirely on diesel generators. Fuel had to be shipped in by barge during the short Arctic summer, making electricity expensive, carbon-intensive, and vulnerable to supply disruptions. Now, the community runs on clean hydropower for both electricity and heating.
The environmental impact is substantial: over its 40-year lifespan, Innavik is expected to cut greenhouse gas emissions by roughly 700,000 tonnes. That’s the equivalent of taking thousands of cars off the road – except it’s happening in a place where roads barely exist.
The project also created local jobs during construction and continues to offer economic opportunities. One idea being explored is a community greenhouse, which would use the reliable power to grow fresh produce year-round – a luxury in the Arctic.
Key Features of Innavik Hydro:
| Feature | Detail |
|---|---|
| Location | Inukjuak, Nunavik, Quebec |
| Population Served | 1,800 residents |
| Capacity | 7.5 MW |
| Diesel Replacement | Nearly 100% of community’s previous diesel generation |
A local leader involved in the project told media:
“This is about more than power. It’s about our community controlling our future.”
The Innavik project received nearly $15 million in federal funding through the Clean Energy for Rural and Remote Communities (CERRC) program, making it one of the most significant investments in Indigenous-led renewable energy in Canadian history.
Is it perfect? No project is. Hydropower in sensitive Arctic ecosystems requires careful environmental management, and the upfront cost was steep. But what Innavik proves is that remote, Indigenous communities don’t have to wait for southern Canada to figure out the energy transition. They’re leading it.
Community-Led Projects
Not every project is a mega-farm. In fact, some of the most inspiring initiatives we reviewed are community-led.
- Banff Community High School: Canada’s first LEED-certified school, equipped with rooftop solar.
- Broadway Theatre in Saskatchewan: one of the sunniest provinces putting panels on a community arts hub.
- Champion Mushroom Farm in Ontario: turning a farm into a dual producer of food and electricity.
- Bulkley Valley Community Resources (Smithers, BC): biomass district heating powered by local forestry waste.
Indigenous-led projects are especially significant. As Dean Jacobs, an Indigenous Clean Energy leader, told us:
“When communities co-own the projects, the benefits stay local.”
That principle is increasingly built into federal funding models requiring 51% or more Indigenous equity in certain new projects.
National Growth Projects
Alberta has become a testing ground for scale. Projects like Forty Mile Wind and Big Sky Solar represent hundreds of millions in investment. According to 2026 data, Canada now counts over 360 wind farms and 240 solar projects larger than 1 MW.
This scale-up is what will matter most if Canada is to actually meet its 2035 target.
Benefits Canadians Can See and Feel
All the charts and gigawatts aside, what do renewables actually mean for Canadians?
1. Affordable Power
Wind and solar are now the cheapest electricity sources in history. The levelized cost of electricity (LCOE) for new wind projects in Canada averages $40-60 per MWh, compared to $100+ per MWh for new natural gas plants and $150-200+ per MWh for diesel generation in remote communities. As costs drop, ratepayers stand to benefit.
2. Jobs
Clean energy jobs are forecast to hit 80,000 annually by 2035, totalling nearly 2.2 million job-years between now and mid-century. These roles span manufacturing, installation, maintenance, project management, and engineering across all provinces, with particularly strong growth in Alberta, Ontario, and Quebec.
3. Health
Fewer emissions mean cleaner air. Public health researchers link renewable energy growth to lower asthma and cardiovascular risks. A 2025 study estimated that transitioning away from fossil fuel electricity could prevent approximately 400-600 premature deaths annually in Canada by 2035, saving the healthcare system an estimated $2-3 billion in associated costs.
4. Equity
About 10% of households face energy poverty, spending more than a tenth of their income on power. Sustainable energy projects can lower bills and offer ownership models that include Indigenous and rural communities.
One Ontario reader told us after installing rooftop panels:
“Our winter bills dropped by a third. It’s not just about saving money – it feels like the house finally works with the seasons, not against them.”
FAQs
What are the pros and cons of wind energy in Canada?
Pros of wind energy in Canada include affordability (with costs of $40-60 per MWh, it’s the lowest-cost new generation source), zero emissions during operation, job creation in rural areas (Canada now has 360+ wind farms employing thousands), and consistent long-term pricing that protects consumers from fossil fuel price volatility.
Cons include intermittency (requiring backup power or battery storage), noise complaints near residential areas (typically within 500m of turbines), visual impact on landscapes, potential bird and bat collisions (though modern turbines are designed to minimize this), and land-use disputes in some communities. Local engagement and proper siting are key to balancing these pros and cons, as emphasized by national green energy networks.
What were the key lessons from the Drake Landing Solar Community?
Drake Landing proved solar thermal energy storage works in Canada's climate, even though the project was decommissioned in 2024 due to high maintenance costs and aging infrastructure. The project provided 17 years of real-world performance data showing that seasonal thermal storage can provide up to 90% of heating needs for Canadian homes through harsh winters. Key lessons include: (1) the importance of designing for long-term maintenance accessibility, (2) using standard components that remain available over decades rather than specialized parts, (3) planning for system upgrades and component replacement from day one, and (4) ensuring adequate training for local maintenance teams.
Its legacy lives on: newer solar companies are now designing storage systems that are more affordable and easier to maintain, building on what Drake Landing taught the industry. The project influenced over 50 academic studies and similar systems in Europe, China, and Scandinavia.
Are solar homes realistic in northern Canada?
Yes, solar homes are realistic in northern Canada, especially when paired with hybrid systems combining solar with biomass heating, battery storage, or efficient backup systems. Remote Indigenous communities are leading in this space, sometimes with partnerships that include local solar companies and co-ops. While winter solar output is lower at northern latitudes (a solar panel in Yellowknife produces about 60% less energy in December compared to June), modern solar panels actually perform more efficiently in cold temperatures – they can be 10-15% more efficient at -25°C compared to +25°C.
Additionally, snow reflection can boost output by 20-30% on clear winter days. Year-round systems typically require 2-3 times more panel capacity than southern installations to compensate for shorter winter days, but the economics still work out, especially in remote areas where diesel costs $0.50+ per kWh.
Will renewables really replace fossil fuels by 2035?
Canada can achieve 100% clean electricity by 2035 through a combination of wind, solar, hydro, and energy storage, but success depends on political commitment and infrastructure investment. With wind and solar capacity growing 52% between 2020-2025 and energy storage expanding rapidly, the technical pathway exists. The main barriers are: (1) regulatory approval timelines that currently take 3-7 years for major projects, (2) transmission infrastructure upgrades needed to connect remote renewable resources to population centers (estimated cost: $30-50 billion), (3) sustained government support for large-scale projects, and (4) integration challenges from intermittent sources requiring approximately 10-15 GW of new energy storage by 2035.
The technology exists, but it requires accelerating project approvals and maintaining investment momentum. Some green energy leaders argue it's less about technology and more about getting faster regulatory approvals and coordinated grid planning.
How much does renewable energy cost in Canada?
Renewable energy costs in Canada vary significantly by technology and location. As of 2026, wind power costs $40-60 per MWh for new projects, making it the cheapest option available. Solar PV costs $50-80 per MWh in southern Canada (Alberta, Ontario, Saskatchewan) but can be cost-effective even in northern regions when factoring in diesel displacement. Hydropower costs range from $30-120 per MWh depending on project size and geography – large-scale projects like Site C come in around $80-90 per MWh, while smaller run-of-river systems can be $100-120 per MWh.
For comparison, new natural gas plants cost $100+ per MWh, existing coal generation runs $120-150 per MWh, and diesel generation in remote communities can exceed $200-400 per MWh when including fuel transportation costs. These price trends explain why utilities are rapidly shifting to renewables – it's now the economically rational choice, not just the environmental one.
What is Canada's largest renewable energy project?
The Site C hydroelectric dam in British Columbia is Canada's largest current renewable energy project under construction, with 1,100 MW capacity and expected completion in 2025. The project will generate approximately 5,100 GWh of electricity annually – enough to power about 450,000 homes. For wind energy, the Travers Wind Farm in Alberta (465 MW, operational since 2021) holds the title as one of the country's largest, producing enough electricity for approximately 170,000 homes.
For solar, the Travers Solar Farm (also in Alberta, 465 MW commissioned in 2024) is Canada’s largest solar installation. For Indigenous-led projects, the Innavik Remote Hydro Project in Nunavik (7.5 MW) is the largest off-grid facility, demonstrating that renewable energy leadership is happening across scales and communities, not just in massive southern projects.
And if there’s one thing our reviews confirm, it’s this: sustainable energy here isn’t just about numbers. It’s about healthier homes, resilient communities, and the chance to power our future on our own terms.
“Clean power isn’t just policy, it’s people – explore the stories, back the projects, and join the movement.”
Last updated: February 3, 2026