Canada has large geothermal potential, especially in western regions, but the resource is still underdeveloped compared with countries like the U.S., Iceland, and New Zealand. The primary reasons are historically low electricity prices, abundant hydro resources, and high initial drilling costs. Geothermal energy has advantages such as:
24/7 baseload power (unlike wind/solar).
Low emissions and small land footprint.
Direct-use heating can dramatically reduce natural gas demand.
Can re-purpose oil & gas drilling skills and even abandoned wells.
The Areas with Best Geothermal Potential:
1. Western Canada Sedimentary Basin (WCSB) – Alberta, BC, Saskatchewan
- Deep sedimentary basins with hot permeable rocks.
- Good fit for both power generation and direct-use heating.
- Oil & gas expertise makes the region technically ready for geothermal development.
2. British Columbia
- Volcanic regions such as Mount Meager offer high-temperature resources.
- Long considered one of Canada’s best sites for conventional geothermal power.
3. Yukon & Northwest Territories
- Hot springs and geothermal anomalies.
- Primarily suited today for direct heating and small-scale community energy projects.
4. Ontario & Quebec
- Lower geothermal temperatures.
- Mostly suitable for ground-source heat pumps (geoexchange), not electricity.
The Biggest Challenges:
High upfront costs for drilling.
Exploration risk: resource temperature and flow may not meet expectations.
Low electricity prices (especially in hydro-rich provinces) reduce financial incentive.
Regulatory gaps in some provinces for geothermal production.
Future outlook and driving factors
Experts generally see geothermal as a niche but rapidly emerging component of Canada’s clean-energy mix.
Technological advances in closed-loop and enhanced geothermal systems (EGS).
Increasing interest in district energy for northern and rural communities.
DEEP Earth Energy (Saskatchewan) is Canada’s first large-scale geothermal power project (Flaxcombe area).