The electricity sector in Canada has played a significant role in the economic and political life of the country since the late 19th century. The sector is organized along provincial and territorial lines. In a majority of provinces, large government-owned integrated public utilities play a leading role in the generation, transmission, and distribution of electricity. Ontario and Alberta have created electricity markets in the last decade^[which?] to increase investment and competition in this sector of the economy.

Hydroelectricity accounted for 60% of all electric generation in Canada in 2018, making Canada the world's third-largest producer of hydroelectricity after China and Brazil. Since 1960, large hydroelectric projects, especially in Quebec, Newfoundland and Labrador, British Columbia, and Manitoba have significantly increased the country's generation capacity.

The second-largest single source of power (15% of the total) is nuclear power, with several plants in Ontario generating more than half of that province's electricity, and one generator in New Brunswick. This makes Canada the world's sixth-largest producer of electricity generated by nuclear power, producing 95 TWh in 2017.

Fossil fuels generate 18% of Canadian electricity, about half as coal (7% of the total) and the remainder a mix of natural gas and oil. Only three provinces use coal for electricity generation. Saskatchewan, New Brunswick, and Nova Scotia rely on coal for less than half their generation while other provinces and territories burn none for electricity. Alberta and Saskatchewan also use a substantial amount of natural gas. Remote communities including all of Nunavut and much of the Northwest Territories produce most of their electricity from diesel generators, at high economic and environmental cost. The federal government has set up initiatives to reduce dependence on diesel-fired electricity. However, in 2018, the NWT generated 70% of their electricity from hydroelectric dams and 4% from wind. In Nunavut, solar generates a small amount of electricity through small installations and projects.

Non-hydro renewables are a fast-growing portion of the total, at 7% in 2016. Notably, Prince Edward Island generates nearly all its electricity via wind power.

Canada has substantial electricity trade with the neighbouring United States amounting to 72 TWh exports and 10 TWh imports in 2017.

Canadian homes, offices and factories are large users of electricity, or hydro, as it is often called in many regions of Canada. In 2007, Canadian per capita electricity consumption was among the highest in the world, with a yearly average of 17 MWh. In 2017, the average annual electricity consumption per capita in Canada dropped to 14.6 MWh. Quebec had the highest annual consumption at 21 MWh per capita, while Nunavut had the least, 6.1 MWh per capita. In 2018, electricity generation accounted for 9% of Canada's emissions, a 32% decrease from 1990.

Electricity has been significant for Canada's economy and politics since the late 19th century. In the 1890s, three firms competed to develop the Canadian Niagara Falls. After the First World War, the provincial utilities were created. The public companies focused on rural electrification and hydroelectric development. In 1952, Canada's first nuclear power plant was built, and in 1968, the North American Energy Reliability Council(NERC) was founded