Canada’s massive hydro potential to remain elusive

Despite its southern neighbour seeking new sources of low-carbon power, further expansion of Canadian hydropower is unlikely to be competitive

The Canadian government views the Biden administration’s plan to achieve a carbon-free grid by 2035 as opening the door to substantially greater hydropower exports to the US, with environment minister Jonathan Wilkinson referring to it as “a big economic opportunity” in February. Canada is the second largest hydropower producer in the world, with 81GW of installed capacity and the potential to more than double that figure, according to Ottawa-based trade group Waterpower Canada. Canadian hydro accounts for 60pc of national electricity generation, while also holding significant market share in several US regions: 17pc of New England, 12pc of Midwest states and 5pc of New York. “Many of