Powering Net-Zero: Why Waterpower is Canada’s Competitive Advantage

This blog was provided by WaterPower Canada

As governments, industries, and communities across Canada accelerate efforts to achieve net-zero, one question rises above the rest: how do we build a clean energy system that is not only sustainable, but reliable, affordable, and capable of powering a strong and growing economy?

The answer, in large part, is already flowing through our rivers.

Waterpower is Canada’s most abundant source of clean electricity. For over a century, it has powered Canadian homes and industries – and today, it’s more relevant than ever. Hydroelectricity provides over 60% of the nation’s electricity, supports approximately 130,000 jobs, contributes over $35 billion annually to GDP, and enables hydro-rich provinces to offer some of the lowest electricity rates in the country. Yet, despite its proven value and immense untapped potential, waterpower remains under-leveraged.

As we chart a path toward a net-zero future, it’s crucial to recognize the foundational role waterpower plays – not only in reducing emissions but in strengthening our energy security and driving long-term economic resilience.

A Scalable and Proven Solution

Canada’s hydroelectric infrastructure spans over 600 facilities from coast to coast, with a combined installed capacity exceeding 82,000 megawatts. What truly sets waterpower apart from other renewable energy sources is its reliability and flexibility. It plays an integral role in Canada’s clean energy mix, complementing other renewables such as solar and wind.

Hydropower facilities – through reservoir or pumped-storage systems – act as natural batteries. They store energy during periods of low demand and release it when needed. This balancing function not only ensures grid stability but also mitigates price volatility and reduces reliance on fossil fuel peaker plants.

In short, hydropower is the backbone of Canada’s clean electricity system. It’s uniquely positioned to support the electrification of our country’s energy grid, making it a cornerstone of our sustainable future.

A Strategic Economic Driver

Waterpower isn’t just clean energy – it’s a powerful economic engine. The sector supports thousands of jobs in engineering, construction, environmental sciences, operations, and maintenance. It stimulates economic activity in both urban and rural regions, creating long-term infrastructure that delivers returns for generations.

Hydropower plays a vital role in regional economic development. In many provinces, hydro projects generate stable municipal revenue, create local employment, and support infrastructure improvements that benefit entire communities. This long-term investment in local economies is a key reason why hydro-rich provinces offer some of the most competitive electricity rates in the country.

Refurbishment projects, in particular, present high-impact opportunities. As aging facilities are upgraded to enhance efficiency and capacity, Canadian firms benefit from contracts in turbine design, civil engineering, equipment manufacturing, and specialized construction services. These projects also extend asset lifespans – sometimes by 40 to 50 years – making them highly cost-effective investments that benefit future generations.

Unlocking Untapped Potential

Despite being the world’s fourth-largest producer of hydroelectricity, Canada has only tapped a fraction of its potential. Experts estimate we could more than double our current installed capacity through new developments, upgrades, and the deployment of pumped-storage systems.

However, unlocking this potential requires more than engineering excellence. It demands efficient permitting processes, supportive regulatory frameworks, and predictable timelines for project approvals. Additionally, federal and provincial governments must align their climate and energy goals to ensure that developers and investors have the confidence to act.

Given that hydro projects are capital-intensive and take years to develop, long-term policy certainty is essential. The return on these projects is measured not just in decades, but in generations, because when properly maintained these assets can last for over a century.

Indigenous Reconciliation Through Partnership

The future of waterpower in Canada is deeply tied to Indigenous leadership and partnership. Across the country, Indigenous Nations are actively shaping the next generation of hydro projects – through co-development models, equity ownership, and long-term revenue-sharing agreements. These partnerships represent more than just business arrangements; they are tangible expressions of reconciliation and economic self-determination.

By ensuring that projects reflect Indigenous values, stewardship principles, and community priorities, these partnerships create lasting benefits. They bring jobs, training, and infrastructure to Indigenous communities while protecting biodiversity and sustaining healthy river ecosystems. Waterpower producers work in close collaboration with Indigenous communities, conservation groups, and local stakeholders to ensure projects are developed responsibly.

Powering the Future

As we electrify sectors that have traditionally relied on fossil fuels, demand for clean electricity is projected to double in the coming decades. Meeting that demand requires solutions that are not only clean but scalable and dependable. Waterpower offers both.

Some hydropower facilities in Canada have been operating for over 100 years and with proper maintenance and upgrades will continue to produce power well into the future. This longevity and reliability make them among the most enduring forms of infrastructure our nation can invest in. For Canadian businesses, this means access to stable and affordable electricity over the long term – a critical factor in competitiveness, especially in an era of global supply chain realignment and electrification policies.

Waterpower is more than just a clean energy solution – it’s a competitive advantage, an economic catalyst, and a pillar of energy security in Canada. To fully realize this potential, we must treat waterpower not as a legacy asset, but as a strategic investment in Canada’s future – one that aligns net-zero ambition with economic opportunity.