Electricity may be invisible once it enters the grid, but decisions about where it flows can have major consequences for energy markets, businesses, and households on both sides of the Canada–U.S. border.
EDF Trading North America, a U.S.-based energy trading company, is seeking Canadian regulatory authorization to export up to 10 million megawatt-hours of electricity annually to the United States over a 10-year period.
The proposal, highlighted in a November 14, 2026, notice in the Canada Gazette, comes as cross-border electricity trade remains an important component of North America’s energy infrastructure. While the requested volume is substantial, regulatory approval would not guarantee that all the electricity will be exported. The application raises important questions about market opportunities, Canadian electricity availability, and the future of energy cooperation between the two countries.
EDF Trading Wants Permission for Up to 10 Million MWh Annually
EDF Trading North America, LLC submitted its application to the Canada Energy Regulator on October 1, 2026, seeking authorization to export two categories of electricity to the United States. The proposal covers up to five million megawatt-hours of firm energy and another five million megawatt-hours of interruptible energy annually. Both categories would fall under a requested 10-year authorization. The November 14 publication brought the application back into public view, establishing a new period for interested parties to submit comments before regulators determine how to proceed.
The requested maximum is significant, but it represents regulatory permission rather than a commitment to deliver that amount of electricity. The Canada Energy Regulator must consider the application before issuing a permit or recommending a more extensive licensing process. The public notice does not specify an individual generating station, a particular Canadian province supplying the electricity, or a guaranteed schedule of shipments. Those distinctions are important because an export authorization establishes the legal framework for potential transactions without ensuring that the full amount will move across the border.
The Proposal Includes Two Different Types of Electricity Exports
The distinction between firm and interruptible electricity is central to understanding the application. Under Canadian regulatory definitions, firm energy is supplied through arrangements requiring electricity to be available at specified times during an agreed period. Interruptible energy offers greater flexibility because its delivery can be reduced, interrupted, or stopped at the supplier’s discretion under the relevant agreement. EDF Trading is seeking separate annual limits of five million megawatt-hours for each category, allowing potentially different types of wholesale transactions.
Combined, those maximums equal 10 terawatt-hours, or 10 billion kilowatt-hours, of electricity annually. If the entire amount were delivered evenly throughout a 365-day year, it would represent an average continuous flow of approximately 1,142 megawatts. However, that calculation illustrates the scale of the requested authorization rather than predicting actual electricity movements. Market demand, supply availability, contractual arrangements, and transmission capacity would influence how much electricity could ultimately be exported. The inclusion of interruptible energy also means some transactions could be curtailed when circumstances require greater flexibility.
The U.S. Energy Trader Already Has a History in Canadian Electricity Markets
EDF Trading North America is part of the wider EDF Trading business, which specializes in wholesale electricity, natural gas, and other energy commodities. Its operations include arranging power transactions, providing market access, managing pricing risks, and coordinating electricity deliveries. The company’s role is therefore different from that of a utility building a new generating station. Energy traders can help connect producers with buyers, structure transactions around changing market conditions, and manage the commercial risks associated with electricity supply across interconnected markets.
The application also has an important historical dimension. In September 2016, Canada’s former National Energy Board approved EDF Trading for the same annual maximums of five million megawatt-hours of firm electricity and five million megawatt-hours of interruptible electricity. That authorization, known as Permit EPE-417, ran from October 1, 2016, through September 30, 2026. The latest proposal consequently resembles a continuation of an established trading authorization rather than an entirely new export initiative. However, previous approval does not automatically establish whether the latest application will receive authorization.
Canada Already Exports Billions of Dollars in Electricity to the United States
Cross-border electricity sales are an established part of Canada’s energy economy. According to the Canada Energy Regulator, Canadian electricity exports to the United States reached 32.7 terawatt-hours in 2025, with a total value of approximately $3.3 billion. At the same time, Canada imported 22.1 terawatt-hours of American electricity worth approximately $1.4 billion. The figures demonstrate that the relationship extends beyond Canadian producers simply selling surplus electricity south of the border. Power moves in both directions as regions respond to their respective supply requirements, market conditions, and opportunities.
The difference between exports and imports left Canada with net electricity exports of approximately 10.6 terawatt-hours in 2025. Canadian electricity also represented 81.3% of all electricity imported by the United States that year, illustrating Canada’s importance as an external supplier. These national figures conceal meaningful regional differences, however. Ontario and Quebec together account for more than half of Canada’s electricity production and exports to the United States. For energy traders, this interconnected system creates opportunities to move electricity between markets when commercial arrangements and available transmission capacity make transactions worthwhile.
The Requested Export Limit Is Almost One-Third of Canada’s 2025 Electricity Exports
The scale of EDF Trading’s request becomes clearer when measured against Canada’s existing electricity exports. The proposed annual ceiling of 10 terawatt-hours is equivalent to approximately 30.6% of the 32.7 terawatt-hours Canada exported to the United States in 2025. That comparison helps illustrate the size of the authorization. It does not mean EDF Trading would add another 30.6% to Canadian exports, however. Its earlier permit allowed the same maximum volumes, and the requested authorization could cover transactions already reflected in established electricity trading patterns.
Canada’s export volumes have also changed considerably in recent years. In 2024, Canadian electricity exports totalled approximately 35.7 terawatt-hours, compared with 32.7 terawatt-hours in 2025 using the Canada Energy Regulator’s international merchandise trade figures. The difference underscores how electricity trade responds to changing conditions rather than following a fixed annual schedule. EDF Trading’s maximum authorization would therefore be best understood as commercial flexibility within an existing market. Actual exports could be substantially below the ceiling, and the filing alone provides no evidence that the maximum will be reached.
Existing Power Lines Would Be Essential to Delivering the Electricity
Canada and the United States already share extensive electrical infrastructure. The Canada Energy Regulator identifies 86 international power lines connecting Canadian provinces with American states, representing approximately 1,600 kilometres of federally regulated international power-line infrastructure. These connections allow electricity to move between regional grids serving different populations, industries, and electricity markets. Some major transmission links support large wholesale transactions, while smaller connections serve more localized needs. The infrastructure enables electricity trading, but not every border crossing has the same capacity or commercial significance.
For EDF Trading, obtaining export authorization would represent only one part of a potential transaction. Electricity would still need to be purchased or otherwise secured, scheduled for delivery, and transported through available transmission infrastructure. An export permit would not itself authorize construction of a new international power line, which requires a separate regulatory process. The company’s public notice does not announce a new transmission project or identify a specific export route. Consequently, the proposed ceiling should not be interpreted as proof that 10 terawatt-hours of additional transmission capacity will become available.
Canadian Electricity Buyers Are Part of the Regulatory Review
An important consideration in EDF Trading’s application is whether Canadian electricity consumers have been given a fair opportunity to purchase power before it is exported. Under Section 359 of the Canadian Energy Regulator Act, regulators must consider whether an applicant has informed interested domestic buyers about the quantities and types of electricity available. They must also examine whether qualified Canadian buyers had an opportunity to purchase that electricity on conditions as favourable as those proposed for export. These requirements are intended to protect fair market access for domestic purchasers without automatically prohibiting international sales.
The issue matters because electricity supports essential household and business activities, from heating homes to running factories and commercial facilities. At the same time, Canadian utilities and electricity producers can benefit financially from selling power into neighbouring markets. The regulatory framework therefore considers domestic market access alongside the potential benefits of international trade. In the EDF Trading proceeding, interested parties can submit information about these matters before the Commission makes its determination. The application itself does not establish that Canadian electricity customers will face higher prices, reduced supply, or any specific change to their existing electricity contracts.
Drought and Electricity Demand Could Influence Future Export Volumes
The availability of electricity for export depends on more than commercial agreements. Hydroelectricity generated approximately 54.5% of Canada’s electricity in 2025, according to Statistics Canada, making water levels an important factor in the country’s electricity supply. Continuing drought-like conditions have already affected Canadian production and international electricity movements. In 2025, British Columbia imported approximately 10.2 million megawatt-hours of electricity from the United States while exporting approximately 6.6 million megawatt-hours. The figures illustrate how a major electricity-producing province can become a net importer when market conditions and domestic requirements change.
Those fluctuations are particularly relevant to an application covering both firm and interruptible energy. Firm commitments carry different delivery expectations, while interruptible arrangements provide more flexibility when electricity supplies become constrained. Strong hydroelectric production could create opportunities for additional sales, while prolonged dry conditions, higher domestic demand, or transmission restrictions could limit exports. EDF Trading’s application does not establish which provinces would supply individual future transactions. However, Canada’s recent experience demonstrates why a substantial regulatory authorization should not be confused with a guarantee of consistently available electricity.
The Financial Opportunity Depends on Electricity Prices and Market Conditions
The economic significance of EDF Trading’s proposal will ultimately depend on how much electricity is sold and the prices received. Canada’s electricity export markets have experienced considerable regional price differences. The Canada Energy Regulator reported that Canadian electricity exports averaged approximately C$81.42 per megawatt-hour in 2024. However, exports to western U.S. markets averaged C$125.40 per megawatt-hour, compared with C$58.87 for eastern markets. These differences demonstrate why the destination, timing, and structure of electricity transactions can have major consequences for their financial value.
For electricity traders, opportunities can emerge when prices differ between connected markets or when buyers need dependable supplies during periods of elevated demand. Consider a purely illustrative example: selling 10 million megawatt-hours at C$100 per megawatt-hour would represent C$1 billion in gross electricity sales. That figure is not a forecast of EDF Trading’s revenues, profits, or expected export activity. The company has not disclosed a guaranteed sales price or committed export volume in the public notice. Any financial benefits would depend on actual transactions, procurement costs, transmission expenses, market prices, and the commercial arrangements negotiated with electricity buyers and suppliers.
A December Deadline Will Help Determine What Happens Next
The next important development in EDF Trading’s application is the public consultation process. The November 14 Canada Gazette notice establishes December 14, 2026, as the deadline for interested parties to submit written comments to the Canada Energy Regulator. EDF Trading then has until December 29, 2026, to respond to submissions. These dates are later than those published in an earlier October notice concerning the same application. Regulators are specifically seeking input about potential effects on other provinces and whether interested Canadian electricity buyers have received fair access to available supplies.
Following the submission process, the Commission can consider issuing an electricity export permit or recommending that the application undergo a more extensive licensing procedure. The November notice does not announce a final decision date or confirm that authorization has been granted. For Canadian electricity producers, wholesale buyers, and energy consumers, the distinction between requested permission and actual exports remains essential. EDF Trading is seeking the flexibility to participate in cross-border electricity markets over another decade, but the eventual economic and energy-system consequences will depend on the regulator’s decision and the transactions that follow.
