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Renewable Energy in End-use Demand
Renewable energy in end-use demand increased slowly since 2010. Its growth is driven by increased electricity use in buildings, more renewable generation in the electricity mix, and more blending of biofuels in transportation fuels. End-use energy demand includes all fuels used in homes, businesses, industry, transportation, and government operations—this includes renewable electricity and biofuels.
Recent Trends in End-Use Demand
Canada’s end-use demand is largely shaped by economic activity, sector composition, energy prices, technology, and policy. From 2010 to 2023, gross domestic product (GDP) grew by 2% annually,Footnote 1 while end-use energy demand increased by just 0.6% per year. This suggests a relative decoupling of economic growth and growth in energy demand, and is the result of numerous phenomena, including higher energy efficiency and an increasingly service-based economy, which tends to consume less energy per unit of GDP than manufacturing or resource extraction.
Over the same period, residential energy demand declined slightly—by 0.2% annually—with reduced use of heating oil, coal, and wood. Natural gas use remained steady, and electricity increased. Commercial demand grew by 1.3% per year, led by rising natural gas and electricity consumption. Together, residential and commercial buildings accounted for about one-quarter of total end-use energy demand in 2023.
Industry—representing half of Canada’s end-use demand—was the main driver of overall energy demand growth, particularly due to increased natural gas use in the expanding oil sands extraction industry. Transportation demand grew until 2019, then fell sharply (by over 20%) during the COVID pandemic. It has rebounded since but remained below both 2010 and pre-pandemic levels by 2023.
End-use energy, electricity demand and generation data come from Statistics CanadaFootnote 2.
The Rise of Renewables in End-Use Demand
By Fuel Type
Including electricity from renewable sourcesFootnote 3 and all types of biofuels, renewable energy use in Canada’s end-use demand grew by 1.1% per year—from 1,556 petajoules (PJ) in 2010 to 1,786 PJ in 2023Footnote 4.
During that period, the share of renewable energy in total end-use demand increased from 15% to 16%.
Figure 1: Renewable energy in end-use demand by type and by sector, 2010 and 2023 in petajoules
Source and Text Alternative
Source: Total end-use and electricity demand data from: Statistics Canada, Table 25-10-0029-01. Electricity generation: Statistics Canada, Table 25-10-0015-01. Liquid biofuels demand estimation: Biofuels in Canada 2024 – Navius Research Inc. Solid biofuels demand: Comprehensive Energy Use Database | Natural Resources Canada. Gaseous biofuels demand estimated using data from utilities, individual facility lists, and Environment and Climate Change Canada’s official greenhouse gas inventory.
Data: Renewable energy in end-use demand by type and by sector, 2010 and 2023 in petajoules [XLSX 22 KB]
Text Alternative: This stacked bar chart shows estimated demand for each type of renewable fuel—renewable electricity, solid biofuels, liquid biofuels, and gaseous biofuels—across Canada’s end-use sectors: residential and commercial buildings, industry, and transportation, as well as the total across all sectors. Total renewable energy use in end-use demand rose from 1,556 petajoules (PJ) in 2010 to 1,786 PJ in 2023, a 15% increase, driven mainly by growth in electricity and liquid biofuels.
Renewable electricity saw the largest absolute growth—rising by 155 PJ between 2010 and 2023—due to its wide use across all sectors, increased demand for electricity, and a higher share of renewable generation on the grid.
In 2023, renewable electricity accounted for two-thirds of all renewable energy used in end-use demand, or about 10% of total end-use demandFootnote 5.
Solid biofuels—including wood waste and pulping liquor used in industry, and wood used for residential heating—were the second-largest contributor in 2023. They made up nearly 25% of renewable end-use, or 4% of total end-use demand. However, their use declined by over 50 PJ from 2010 to 2023, largely due to reduced wood heating and lower industrial output in pulp and paper, a sector increasingly using natural gas.
Liquid biofuels (ethanol, biodiesel, and renewable diesel) were the fastest growing renewable fuel in end-use. They rose from 47 PJ in 2010 to 158 PJ in 2023, increasing by nearly 10% per year. By 2023, they made up about 10% of all renewable energy in end-use demand (or 1% of total demand), driven by fuel blending regulations and mandates.
Gaseous biofuels (renewable natural gas and biogas) remain a small share but have also grown rapidly due to similar policies and increased availability.
By End-Use Sector
Between 2010 and 2023, the share of renewable sources in residential end-use demand grew from 31% to 36%, mainly due to increased electricity use and a lower-emissions grid. In the commercial sector, renewable energy rose from 22% to 24%. The industrial sector, however, saw both the level and share of renewable energy decline over the period, as gains from renewable electricity and liquid and gaseous biofuels were more than offset by reduced use of solid biofuels, particularly in pulp and paper. In transportation, the share of renewable energy more than doubled from 2% to just over 5%, driven largely by higher biofuel blending in gasoline and diesel, and with electricity for electric vehicles starting to play a role.
Figure 2: Percent share of renewable end-use energy demand by sector for 2010 and 2023
Source and Text Alternative
Source: Total end-use and electricity demand data from: Statistics Canada, Table 25-10-0029-01. Electricity generation: Statistics Canada, Table 25-10-0015-01. Liquid biofuels demand estimation: Biofuels in Canada 2024 – Navius Research Inc. Solid biofuels demand: Comprehensive Energy Use Database – Natural Resources Canada. Gaseous biofuels demand estimated using data from utilities, individual facility lists, and Environment and Climate Change Canada’s official greenhouse gas inventory.
Data: Percent share of renewable end-use energy demand by sector for 2010 and 2023 [XLSX 21 KB]
Text Alternative: This bar chart shows the share of renewable energy—including renewable electricity and all forms of biofuels—in total end-use demand by sector for 2010 and 2023. In 2023, the highest shares were in the residential (36%) and commercial (24%) sectors. The transportation sector had the lowest share at 5%. The numbers at the top illustrate total end-use demand across each sector in petajoules of energy for 2010 and 2023.
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