An abundance of natural resources positions Canada among the top global energy producers. Energy is also a major economic driver, generating almost 10% of Canada’s GDP and one-third of all goods exports¹.  While these statistics may suggest Canada's energy strength, energy availability is only one pillar of an increasingly complex energy security ecosystem. Addressing rising energy demand, aging infrastructure, supply chain disruptions, and increasing climate risks requires strengthening the reliability and resilience of our energy systems. For utilities, grid operators, governments, and industry, energy security has become as much about system performance as it is about energy production. 

Is Canada ready for this challenge? 

Energy security in today’s world

Energy security has wide-reaching implications. A secure energy system generates wealth, prosperity, and safety for Canadians and our global allies. When under threat, it can undermine public safety, economic growth, and societal well-being. 

A comprehensive approach to energy security begins with an understanding of what energy security encompasses in a rapidly evolving energy and geopolitical landscape.  Today’s approach to energy security must consider the full spectrum of energy sources and the entire energy value chain, from production, transmission, and distribution to storage and end use. As such, it can be best described through three pillars:

• Energy availability, representing a sufficient supply of energy
• Energy reliability, meaning that energy can be delivered when and where it is needed
• Energy resilience, the ability of energy systems to withstand and recover from disruptions 

However, these pillars do not exist in a vacuum—they are inherently connected to global markets and geopolitics that shape energy security more than ever before. 

Emerging challenges for energy security

As the energy security landscape evolves, it brings new challenges and opportunities. Many of them have not been traditionally considered part of energy security. 

Policy and governance approaches to energy security now need to navigate:

• Trade and economic volatility, from tariffs on steel and aluminum that increase the price tag of energy infrastructure projects to global energy price fluctuations that can significantly affect the domestic economy.
• Geopolitics can have unexpected impacts on energy markets and domestic production due to integrated supply chains and economic interdependence.
• Extreme weather and natural disasters can disrupt energy production, delivery, and storage. This impacts production, including renewable energy sources—prolonged droughts can reduce the productivity of hydroelectric dams, while hail and ice can damage wind turbines and solar panels—and transmission infrastructure.
• New technologies can support energy security in many ways. Distributed energy resources, battery energy storage technologies, hydrogen fuel cells, and small modular reactors can make energy systems more resilient, flexible, and reliable. However, careful planning and effective safeguards are needed to address challenges such as cybersecurity risks related to digital technologies, as well as increased dependence on critical minerals in modern energy storage.
• Rapid growth in energy demand driven in part by the adoption of technologies, such as electric vehicles and artificial intelligence, may strain grids and energy infrastructure, reducing energy availability. To complicate matters, the energy needs of these technologies are difficult to forecast because their uptake rates are often unclear.
• Infrastructure planning cannot be divorced from energy security, as reliability and resilience require regular maintenance, upgrades, and expansions of energy infrastructure and telecommunications systems. Infrastructure gaps are especially acute in Indigenous and Northern communities that are not connected to major energy systems and mostly rely on diesel generators.
• Labour and skills shortages are becoming critical as Canada’s workforce ages. This is a reality not only in the energy sector but also in critical supporting sectors such as transportation, construction, and cybersecurity. As energy technologies evolve, the ability to rapidly train or upskill workers will also be crucial to maintaining energy security.