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Backgrounder

Canada’s Electricity Story  

Canada boasts one of the cleanest electricity systems in the world with three-quarters of our electricity supply emitting no greenhouse gases.

Although our electricity system is already one of the cleanest in the world, our government is taking another step towards developing an even cleaner electricity grid by announcing our intention to regulate coal-fired electricity generation.

Taking action now to regulate coal-fired electricity generation will reduce GHG emissions, improve air quality for Canadians and provide regulatory certainty for industry. 

The proposed regulations will apply a stringent performance standard to new coal-fired electricity generation units and those coal-fired units that have reached the end of their economic life.  

The standard will be based on parity with the emissions performance of high-efficiency natural gas generation. The standard will promote the replacement of coal-fired units that are reaching the end of their economic life, and will encourage investment in cleaner generation technologies, such as high efficiency natural gas generation and renewable energy, as well as the use of carbon capture and storage.

Current Electricity Supply Mix

Canada currently has a diverse electricity generation portfolio. In 2007, hydroelectric power produced approximately 59 per cent of Canada’s total electrical power generation followed by fossil fuels (coal, natural gas and oil) at 25 per cent, nuclear energy at 15 per cent, and other sources such as wind and bioenergy accounting for the remaining one per cent of generation.

2007 Total Utility Electricity Generation by Fuel in Canada
Hydro59%
Coal19%
Nuclear15%
Gas5%
Oil1%
Wind1%
Other0%
Total100%

Reducing Greenhouse Gas Emissions from the Electricity Sector

Canada’s electricity sector is responsible for 17 per cent of Canada’s greenhouse gas emissions and 13 per cent of national GHG emissions are generated from coal-fired units.

Going forward, all new coal-fired electricity units will have to meet a standard on par with the emissions intensity of high-efficiency natural gas generation.

The gradual phase-out of traditional coal-units is expected to have a significant impact on reducing emissions from the coal-fired electricity generation sector. This policy, coupled with the commitment of the provinces and companies who have committed to coal closures, will amount to emissions reductions of about 15 Mt. 

This regulation will ensure Canada remains a world leader in clean electricity generation, and will enhance our status as a clean energy superpower.