Public Services and Infrastructure | Secteurs | TTC Nantel Services-Conseils

Public Services and Infrastructure: Overview of the Canadian Market

The Canadian public services landscape consists of six essential pillars:

Electricity transmission
Natural gas distribution
Water supply and irrigation
Wastewater treatment
Thermal power generation
Renewable power generation

Together, these sectors generate over $160 billion in annual revenue—of which more than $68 billion comes from electricity transmission and distribution alone. Profitability remains strong: the average margin hovers around 13%, driven by thermal generation (19%) and natural gas networks (15.3%), while water, wastewater, and renewables show margins ranging from 9% to 13%.

Driven by population growth, climate targets, and the modernization of aging infrastructure, activity remains relatively stable; demand is inelastic, and rates regulated by provincial boards help stabilize cash flows. However, the energy transition is accelerating the reallocation of investments: more than half of future spending is directed toward renewable integration, storage, and the climate resilience of the grid.

Key Figures of the Canadian Public Services Sector

Three indicators illustrate the size, profitability, and growth momentum of the sector.

Annual Revenue from Electricity Transmission

$68.1 B

Largest source of revenue, backbone of the energy network

Profit Margin of Thermal Power Generation

19,0 %

Most profitable segment thanks to nuclear capacity and combined cycle gas systems

Renewable Energy CAGR (2020–2025)

1,9 %

Growth driven by hydro, wind, and solar power—key drivers of decarbonization

Structural Trends and Five-Year Outlook

Driven by the combined effects of the energy transition and stricter regulatory pressures, three key forces will shape the outlook:

Accelerated Decarbonization: Investments are shifting toward hydro, wind, and solar energy; renewable capacity, already generating $39 billion in revenue, is expected to exceed $42 billion by 2030 despite moderate growth.
Grid Modernization: Interprovincial and cross-border line projects (e.g., Champlain Hudson Power Express) are consolidating a $68 billion infrastructure market and supporting a positive sector CAGR, though at a slower pace (0.8% expected for transmission).
Sustainable Water and Waste Management: The requirement for secondary wastewater treatment by 2040 and the investments needed for water supply networks ($7.7 billion in revenue) will generate a steady stream of public-private projects, stabilizing margins around 12%.

In this context, consolidation is expected to continue, while ESG criteria and asset digitization (smart grids, telemetry, predictive AI) will become crucial to maintaining operational efficiency and attracting capital. Growth opportunities lie as much in vertical integration (generation-storage-distribution) as in public-private partnerships aimed at securing essential services across the country.