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Pandemic linked to 15% drop in fossil fuel use in 2020: Energy Regulator

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What the 15% fossil fuel drop in 2020 means for Canadians

As reported by a CTV News article, refined petroleum product consumption (including fossil fuels such as gasoline, jet and diesel fuel) fell to 15 percent in 2020 as a result of travel and lockdown restrictions.

Conversely, renewable energy generation (wind and solar generation) increased by 12.3 percent over 2020. As such, the pandemic has provided an opportunity for both increased renewable energy investments and an energy transition towards green energy in North America overall.

Is this a long-term occurrence or a temporary trend?

The reduction in burning fossil fuels for energy appears to have been temporary. According to a CTV news article, consumption of diesel fuel, natural gas, and electricity generated by burning fossil fuels returned close to 2019 levels by December 2020. However, since Canada plans to move to a net-zero emissions model by 2050 to combat climate change, a drop in fossil fuel energy production and consumption is likely to reoccur over the next few years.

The future of energy in Canada, however, does involve a nontransient shift towards renewable energy – see the ‘Who’s leading the energy transition in Canada this year?’ section of this post for more details.

Key Stats and Figures

Below are some stats as reported by the Canada Energy Regulator to better help you conceptualize the changes in energy consumption during the pandemic:

  • Imported oil costs fell 40 percent over the previous year to $11.5 billion, reflecting lower volumes and an overall decline in crude prices. In Canada, oil imports are used to feed refineries in the Atlantic Provinces, Quebec, and Ontario.
  • Imports of crude oil decreased to 555,000 barrels per day (b/d), down from 693,000 b/d in 2019.
  • Imports of oil into Quebec decreased from 203 Mb/d to 153 Mb/d in 2020 – costs decreased to $52.92 per barrel.
  • Imports of oil into Ontario decreased from 97 Mb/d to 43 Mb/d in 2020 – costs decreased to $53.37 per barrel.
  • Imports of oil into New Brunswick decreased in 2020 to 245 Mb/d from 278 Mb/d – costs decreased to $58.89 per barrel.
  • Imports of oil into Newfoundland and Labrador decreased from 106 Mb/d to 29 Mb/d in 2020 – costs decreased to $77.87 per barrel.

Who’s leading the energy transition in Canada this year?

According to the Canada Energy Regulator, prairie provinces (Alberta, Saskatchewan and Manitoba) in Canada are leading the country’s growth in renewable energy capacity over the next three years.

Below are some key points regarding the energy transition:

  • In Saskatchewan, wind capacity is expected to triple while wind capacity will nearly double in Alberta between 2020 and 2023.
  • Solar capacity growth is also projected, with Alberta adding on 1,200 MW by 2023.
  • The overall share of renewables for Alberta in the capacity mix is projected to increase from 16% in 2017 to 126% in 2023.
  • In Saskatchewan, the renewable share of capacity is expected to increase from 25% in 2018 to 33% in 2023.
  • Renewable capacity growth is slowed most noticeably in Ontario. Between 2010 and 2017, renewable capacity grew 6.8% per year, while between 2018 and 2023, growth in Ontario slows to 0.4% per year as capacity grows by 466 MW over this period.
  • New large-scale hydro, wind and solar projects will push the share of renewables in Canada’s electricity mix from 67% of installed capacity in 2017 to 71% in 2023.
  • Overall, hydro is the most dominant source of electricity in Canada accounting for 55% of total installed capacity and 59% of generation, with British Columbia, Manitoba, Quebec, Newfoundland and Labrador, and Yukon deriving more than 90% of their power from hydro.

If you’ve been wanting to transition towards clean energy but don’t know where to start, our guides on Green Energy Plans as well as our guide on RECs, Carbon Offsets and Green Building Certification can help you get started. You’ll find common definitions for terms related to renewable energy as well as comparisons for how various options differ (e.g. renewable energy certificates versus carbon offsets, and how VPPAs work.)

Clean energy plans are available for residential, business, and commercial and industrial consumers – to learn more about the green plans or options in your specific area, you can contact our team or fill the form above for a free energy quote.