Canadian hydro exports are running drier than our mouths after a high-stakes presentation.
Driving the news: Canada was a net importer of electricity from the U.S. for six months between September 2023 and June 2024, per the U.S. Energy Information Administration, reversing a nearly two-decade trend of Canada sending more power out than it takes in.
- This new data backs up Statistics Canada numbers from last month that showed Canada’s electricity exports to the U.S. plunged last year to their lowest levels since 2010.
Why it’s happening: The dip was due to lower hydropower exports from Canada’s top hydro producers, Québec, B.C., and Manitoba. In the past, these provinces had enough hydro to spare to sell to the U.S. but are now dogged by droughts and low water inflows.
- Manitoba Hydro blamed droughts for its $157 million net loss last fiscal year. B.C. has imported 20% of its power this year and could be in an energy shortfall by 2026.
- Hydro-Québec has fared better but still saw U.S. exports fall 9% last year, a troubling development as the utility has massive contracts with U.S. and corporate buyers.
Why it matters: While utilities are experienced in navigating dry patches and delivering power, droughts are projected to only get worse and could become a constant strain.—QH