Renewable Energy In Canada

reogma|Renewable Energy In Canada
4 mins read

In the future, Canada will be a superpower of energy, producing uncontaminated energy, and also investing a great deal in the oil sands as well as development of shale gas.

Definition / Scope

In the last few years, Canada has experienced remarkable changes in the energy sector, together with newer renewable energy developments, which has arisen besides – and in few cases because of the development of alternative fossil fuels. In the future, Canada will be a superpower of energy, producing uncontaminated energy, and also investing a great deal in the oil sands as well as development of shale gas.

In the year 2009, 64.5% of the Canadian local electricity usage was produced using renewable resources. Canada is the 2nd biggest producer in the world of hydroelectricity that accounted 58% of the electric generation during year 2007 Ever since 1960, huge hydroelectric projects, particularly in British Columbia, Quebec, Newfoundland, Labrador, and Manitoba, have considerably increased country’s generation capability. Canada is 6th biggest producer in the world of electricity produced by the nuclear power, with production of 97 billion kWh during the year 2013.

Estimates specify that Canada will require 42 GW of newer producing capability for meeting projected demand increases as well as replacement of existing generation capability from plants, which will become decommissioned in the following two decades. Provided the intermingle nature of the U.S. supplying chains within Canada, the development predicts important future exports. Sadly, the most importing provinces of Canada of renewable energy, Québec and Ontario, maintain strong domestic content requirements that may limit the prospects for the American exporters.

Market Overview

Majority of Canada’s energy guidelines are produced and imposed at the local level. In the provinces having effective policies, development in the sector of renewable energy has been comparatively strong. The smart metering program by British Columbia, Ontario’s FIT (Feed-in-Tariff) system, as well as Québec local clean energy authorization have all resulted into amplified investment in this sector.

In the year 2012-2013, a restructured FIT program proved a slowdown as well as is presently under evaluation for the possible new changes. It continues to be observed if Ontario can uphold its magnetism for renewable energy sponsors with new FIT regulations in place. All early indications demonstrate that the other market places have become extra attractive, having investment likely declining in the Ontario.

Till date, Québec and Ontario are the most helpful provinces for the renewable energy. Ontario has produced Green Energy and Green Economy Act in the year 2009 has produced a FIT scheme, which helped the installation for 4.5 GW newer renewable energy capacities in only four years. While it was endorsed, the FIT plan targeted installation of the 10.7 GW newer non-hydropower and renewable energy within year 2018 as well as 9 GW newer hydropower capacities by year 2030.

Deployment of renewable energy in the other provinces is mixed. Saskatchewan has expanded its net metering return program for the projects of fewer than 100 kW. Nova Scotia has executed a district FIT available to metropolises, First Nation societies, as well as not-for-profit groups.

In the Québec, local Energy Strategy authorization with extra 4 GW for newer wind energy as well as 4.5 GW for hydropower capacity is purchased online within year 2015. For supporting both the objectives, the ‘Province of Québec’ has launched cap-and-trade program during year January 2013, even though the effect of this program continues to be unclear.

One exemption to the center on local policies is bio-fuel sector, in which Canada is having national minimum requisite of 5 % renewable content of gasoline as well as 2 % of diesel as well as other essence heating oil.

Market Risks

In spite of Canada’s place as the apex market, particularly for the U.S. exports in 2015, the growth of Canadian import is anticipated to be raged somewhat by sturdy local content necessities and the existence of the foreign-flagged producers within the market. Québec is having the most rigorous local content necessities for the renewable energy within Canada, specifying that 60% of project costing, as well as 30% of the wind turbine costing, be used in the state.

The domestic content policies in Ontario were available to be contradictory with Canada’s requirements under the agreements of World Trade Organization, and whereas the state has transformed its reasons, it continues to be observed if the marketplace will open considerably to the foreign suppliers. The manufacturing capability in Canada has developed as result of LCR (Local Content Requirements) in the two provinces. Enercon and Repower are two German companies, who are only overseas manufacturers of having operations in the Québec, as well as accordingly hold all contracts for the wind projects presently under the development in this province.

Top Market Opportunities


To become successful, the exporters of wind energy will require bringing inventive solutions and niche services or products in the market. The Bloomberg New Energy Finance anticipates 6.7 GW for new wind capability to be purchased online in the Canada in year 2015. Even products, which were formerly imported, like nacelles for wind business, are expected to be resourced locally within the future. Overseas component suppliers can get some prospects selling to the turbine manufacturers, however in the short-range, exports are expected to be in the figure of services. Ecological impact consultants, engineers, financiers, as well as controlling system designers, all will get opportunities.


Canada ranks higher for solar import options in the 2015. While Canada has 14th rank worldwide for anticipated solar installations in 2015, the nation’s limited manufacturing capability in this sector can create prospects for professionals of overseas solar equipments. British Columbia, Québec, and Ontario have produced promising solar energy bunches, which can support extra development in the future.


Canada is anticipated to be an important bio-fuel market in the 2015. In the 2013, over 50% of all the U.S. exports of ethanol were dispatched to Canada, with value of more than $775 million. Provided current reasons in Canada for both the national and provincial levels, as well as the ease of cross-border transport through rail, the aggressive position of the U.S. exporters within Canada needs to continue. Canada’s national consent of 5 % ethanol combination (7.5 % in the Saskatchewan as well as 8.5 % in the Manitoba) is under the 10-15 % blends within the United States; however levels of production are insufficient for meeting the anticipated annual demand of 2.7 billion liters.


Canada also comes in the higher list of apex hydropower importing markets. This market is anticipated to support nearly 80 % of all the hydropower exports in the U.S. in 2015, even though this will only comprise 7% growth of the hydropower capability worldwide in this time. In the year 2012, the CHA (Canadian Hydropower Association) expected that this country is having 163 GW unused hydropower capability. Presently, there are merely 25 GW of the hydropower is under production or in superior planning.



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