Electric power consumption

Electricity consumption has remained a vital driver of economic activity, characterized by continued growth throughout 2025, as demand increases by 3.7% to reach 2,010 petajoules. Expansion in digital infrastructure and rising requirements for data centers have shaped consumption trends, underscoring the growing interdependence between technological advancements and energy demand. Although ongoing government efforts to encourage energy efficiency persist, consumption continues to expand as new developments replace older facilities, reflecting stable but increasing business and residential requirements for electric power.?

Over the five-year period from 2020 to 2025, major economic disruptions had a significant impact on electricity demand. The COVID-19 pandemic resulted in a 1.6% reduction in 2020, primarily due to restrictions on businesses and travel that suppressed commercial and industrial activity, while household requirements remained steady as Canadians spent more time at home. The pace of recovery was evident by 2022, as the reopening of the economy prompted a swift rebound in electricity consumption, with industrial facilities resuming full-scale operations. Developments in sectors reliant on digital infrastructure, particularly the proliferation of data centers, further bolstered demand growth in subsequent years. Continued population growth and steady consumer use for essential activities such as heating, lighting and appliances contributed to stable baseline power needs throughout the period. However, the decline in industrial activity during periods of recession or adverse economic conditions, such as those linked to global commodity price falls in the early years of the period, demonstrated the sensitivity of industrial demand to broader macroeconomic conditions.?

Broader macro trends influencing performance from 2020 to 2025 include the gradual integration of energy efficiency initiatives, shifts in consumer behavior regarding electricity consumption and Canada's transition away from fossil fuels. Government and industry-led programs have accelerated the introduction of more efficient buildings, appliances, and practices, although their impact has not offset overall demand growth. Policy-driven shifts supporting cleaner electric power generation have contributed to transitioning the energy mix, setting the stage for future directions in consumption. Population growth and ongoing urbanization also serve as persistent forces in shaping the trajectory of electricity demand during the period.? This had contributed to the consumption of electricity rising at a CAGR of 0.2% over five years to 2025.