Hot, dry weather cut Canadian electricity exports 24% in 2023

Less rain and more evaporation lowered Canadian rivers and reservoirs, costing at least $1B in electricity sales in 2023

Hot and dry weather reduced Canada’s hydro-electric generation capacity in 2023, cutting Canada’s electricity exports to the United States by 24.4 per cent from the year before, according to Statistics Canada’s annual report on Canadian electrical systems.

BC’s exports to the US and other Canadian provinces fell 45.3 per cent between 2022 and 2023. In the same period, Quebec exports dropped 41.1 per cent, Manitoba fell 31.1 per cent and Ontario was down 11.5 per cent.

The drop in electricity exports is another worrying economic impact of climate changes that bring less rain to fill rivers and hotter days that evaporate reservoirs.

The weather-driven cut in exports cost Hydro-Quebec $550 million last year, according to the crown corporation’s CEO. British Columbia’s drought turned the province into a net electricity importer, costing the province $450 million.

Agriculture Canada classified 88 per cent of British Columbia as "abnormally dry or drought-stricken" in 2023, conditions that spread massive wildfires and caused lower rivers and reservoirs. While the situation has since improved, at the end of September 2024, 71 per cent of Canada’s Pacific Region was classified as abnormally dry or in a moderate to extreme drought.

Hydro-electricity has partial production rebound in 2024

Less extreme weather so far in 2024 has allowed many Canadian hydro-electric stations to increase production this year. But hydro-electric production and electricity exports are not back to pre-2023 levels.

Hydro-electric generation in July 2024 was 6.8 per cent higher than July 2023, improving Canada’s total electricity generation 5.9 per cent.

British Columbia’s July 2024 hydro-electric generation was 29.6 per cent higher than July 2023.

At the same time that climate change is placing pressure on hydro power generation, decarbonizing the economy is increasing domestic electricity demand. Canadian households and businesses this year set a July record at 48.5 million megawatt hours.