Prolonged drought and extreme weather are forcing Canada to import electricity from the US after nearly two decades of exporting excess hydropower to its neighbour.
Canada is the world’s third-largest producer of hydroelectricity, behind Brazil and China, and hydropower accounts for close to 62 per cent of its total domestic electricity generation, according to official data.
But surging power demand linked to digitisation and the reshoring of manufacturing has collided with reduced electricity supply because of drought, complicating Canada’s energy transition and its trade relationship with its powerful neighbour.
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