3 Takeaways on US–Canada Power Flows

Electricity trade between the United States and Canada plays a quiet yet crucial role in maintaining grid reliability across North America. While it represents less than 1 % of each country’s total generation, its strategic importance continues to grow. Here are three key insights:

1. U.S—Canada electricity trade is less than 1% of each country’s total generation

   The U.S. net electricity import has been narrowing in recent years driven by droughts and lower U.S. natural gas prices.

   
   

2. Grid balancing is the biggest benefit

   The main value of cross-border electricity flows lies in enhancing grid reliability. These interconnections help balance supply and demand, especially during periods of stress or peak load. A key example is the Lake Erie flow loop, which provides operational flexibility and strengthens the grid on both sides of the border.

   
   

3. NYISO (New York) and ISO-NE (New England states) are among the largest importers.

   In contrast, Michigan’s imports have become less pronounced, as its energy needs are now absorbed across the broader MISO (Midcontinent Independent System Operator) footprint, reducing its individual reliance on Canadian supply.

Source: U.S. Energy Information Administration This chart illustrates the trends in electricity imports and exports between the U.S. and Canada over time

Source: https://www.eia.gov/todayinenergy/detail.php?id=63684

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