Electricity & Hydropower

• Hydroelectric power
• Grid-scale electricity exports
• Interruptible power contracts
• Renewable energy certificates (RECs)

1. 1

   Negotiate long-term power purchase agreements with US northeastern utilities

2. 2

   Invest in cross-border transmission infrastructure upgrades

3. 3

   Advocate for Canadian hydropower inclusion in US clean energy standards

4. 4

   Develop energy storage capabilities to provide grid balancing services

5. 5

   Expand domestic industrial demand through electrification of mining and manufacturing

Electricity trade operates largely outside tariff frameworks, governed instead by bilateral interconnection agreements and FERC regulatory oversight. CUSMA does not specifically address electricity market access, leaving cross-border power trade dependent on state-level procurement decisions. Buy American and domestic content requirements in US clean energy legislation could limit Canadian renewable electricity competitiveness in US markets.

Cross-border transmission infrastructure is aging and capacity-constrained, limiting export growth. US state-level regulatory changes (e.g., Massachusetts excluding Hydro-Quebec from clean energy mandates) can abruptly close market access. Canadian hydropower's classification as renewable energy varies by US jurisdiction, creating market access uncertainty.

Canadian hydropower, predominantly in Quebec, Manitoba, and British Columbia, is among the lowest-cost and lowest-carbon electricity globally. Competition from rapidly declining US solar and wind costs pressures Canadian export pricing. Canadian utilities' long-term contract structures provide revenue stability but limit upside from spot market volatility.