Canada thermal power generation rises as natural gas offsets coal decline

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Canada thermal power generation rises

Highlights

Natural gas-fired power generation in Canada rises 6.0% to offset declines in coal, petroleum coke, and nuclear, reaching an eighth consecutive annual increase in 2025.
Ontario's natural gas output increases 23.6% and Alberta's grows 1.9% as coal is phased out, while electricity from petroleum products surges 30.2% nationally, led by Nunavut up 183.6%.
Nuclear generation in Canada drops 0.3% to 81.5 million megawatt-hours, with New Brunswick up 80.6% from Point Lepreau's return but Ontario down 2.1% amid ongoing refurbishments.

Fuel mix shifts in 2025 generation

As reported by Statistics Canada, the increase in thermal generation in 2025 is driven by continued strong growth in natural gas-fired output, which rises 6.0%, or 6.7 million megawatt-hours. That increase more than offsets declines in petroleum coke generation, down 71.8%; coal generation, down 4.5%; nuclear generation, down 0.3%; and coke oven gas generation, down 95.8%.

Natural gas generation rises for the eighth consecutive year. Ontario contributes almost one-quarter of the overall increase, with output up 23.6%, or 6.4 million megawatt-hours, as several large generating stations increase production, while Alberta posts a 1.9% gain, or 1.3 million megawatt-hours, amid higher electricity demand and the complete phase-out of coal-fired generation by mid-2024.

Electricity generation from petroleum products reaches 4.0 million megawatt-hours in Canada in 2025, an increase of 932,528 megawatt-hours, or 30.2%. The largest increase is in Nunavut, where output climbs 183.6%, or 370,293 megawatt-hours, as diesel-fuel generation expands to meet industrial demand tied to new mining activity.

Regional trends reshape the power mix

Nuclear generation edges down to 81.5 million megawatt-hours in 2025. A sharp increase in New Brunswick, up 80.6%, or 1.4 million megawatt-hours, mainly reflects the return of the Point Lepreau Nuclear Generating Station after maintenance and repairs, but that is largely offset by a 2.1% decline in Ontario as refurbishments continue at the Darlington and Bruce nuclear generating stations.

Coal generation continues to retreat nationally, led by a 10.8% drop in Saskatchewan and a full phase-out in Alberta, which cuts 2.0 million megawatt-hours as coal is replaced by other sources, including renewable energy. At the same time, coal output increases in Nova Scotia by 27.8%, or 1.04 million megawatt-hours, and in New Brunswick by 60.6%, or 1.02 million megawatt-hours, partly offsetting declines elsewhere.

Our earlier article on India’s clean energy investment surge noted that capital inflows into the energy transition rose 15% to $72 billion, lifting the country to fifth place globally and signaling a broader shift in how transition funding is being allocated. We also explained that this momentum supports long-term infrastructure buildout across power, industrial fuels, and transport, reinforcing the structural drivers behind changes in national energy systems.

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