Canada Sees Surge in Thermal Power Generation in 2025
Thermal electricity output reached 230.5 million megawatt-hours in 2025, marking a 2.6 per cent increase over the previous year.
Updated on Oct. 16, 2026 in Energy
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In 2025, Canadian thermal electric plants generated 230.5 million megawatt-hours of electricity, a 2.6 per cent increase compared to 2024. This rise was largely driven by growing electricity demand and reduced output from hydroelectric sources.
Why it matters
The increase in thermal generation highlights how shifting supply and demand dynamics, including hydroelectric fluctuations, influence national energy production. Furthermore, the data reflects structural changes in the energy sector, such as the complete transition away from coal-fired power in Alberta.
Natural gas, coal, and uranium accounted for 213.6 million megawatt-hours of total thermal output. Meanwhile, petroleum product generation rose by 30.2 per cent to 4.0 million megawatt-hours, while nuclear production saw a 0.3 per cent decline to 81.5 million megawatt-hours.
The players
Alberta
This province transitioned its electrical grid by finalizing the total elimination of coal-fired power generation in 2024.
Ontario
The province serves as a major hub for electricity production and was a key contributor to increased output at several large generating stations.
The details
Several large generating stations in Ontario ramped up production to meet the rising demand, while Alberta successfully completed its phase-out of coal-fired generation by mid-2024. Despite national trends, coal generation in Alberta decreased by 100 per cent in 2025, marking a significant shift in the provincial energy landscape.
Timeline
Alberta completed its coal-fired generation phase-out in mid-2024.
Canadian thermal plants generated 230.5 million megawatt-hours of electricity in 2025.
The Big Picture
The move follows the mandatory phase-out of coal-fired generation, which permanently altered the regional energy production profile. This transition represents a major shift in national energy policy and industrial strategy.
The increased reliance on natural gas and alternative thermal sources may influence future utility pricing and household energy costs. As the grid evolves to compensate for changes in hydroelectric availability, consumers might see shifts in how their electricity is sourced.
The takeaway
The 2025 data underscores the complexity of balancing fluctuating hydroelectric output with rising national electricity demand. Maintaining a reliable grid requires ongoing adjustments as provinces like Alberta finalize long-term transitions away from traditional coal reliance.
Further reading
For more context on the current state of the national grid, visit Canada Energy.
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Is shifting toward natural gas for electricity production a sustainable long-term energy strategy for the country?
