Canada Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Canada Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Canadian solar energy market is expected to register a CAGR of more than 10% during the forecast period. The market is likely to witness policy changes by the government after the COVID-19 pandemic recovery in order to foster the growth of the solar energy market in the country. Factors such as upcoming solar projects and supportive government targets to reduce reliance on fossil fuels are likely to boost the use of renewable energy sources. Hence, this, in turn, is likely to drive the renewable energy market in the country. However, the high dependence on Ontario for the growth of solar power generation is a major restraint for the country. The Ontario solar PV market is reaching its maturity stage.

Key Highlights

• The solar photovoltaic (PV) segment is expected to witness significant growth in the Canadian solar energy market.
• Canada's plan to achieve net-zero emissions by 2050 is likely to replace the share of fossil fuel in the energy mix with renewables. Hence, this ambitious target is expected to provide an opportunity for the solar market in the coming year.
• The use of alternative sources of energy like wind energy is likely to hinder the growing solar energy market in Canada over the forecast period.

Key Market TrendsSolar Photovoltaic (PV) Segment is Expected to Dominate the Market

• Canada has substantial solar energy resources due to its vast area. In Canada, solar power generation has registered significant growth since 2010, with total installed capacity increasing from 221 MW in 2010 to 3,310 MW at the end of 2019. According to CanREA (Canadian Renewable Energy Association), Canada installed at least 70 MW of solar PV capacity in 2020.
• The country’s most valuable solar energy resources have been found in Alberta, Manitoba, Ontario, and Saskatchewan. The potential in Ontario is significantly exploited. As of 2020, more than 96% of Canada’s solar power generation capacity was in Ontario, as many of the regulations have historically been limited to only Ontario. However, several other solar PV projects are upcoming in other provinces, such as Alberta, Quebec, and British Colombia.
• Furthermore, the growth of solar energy in Ontario is mainly driven by incentives, such as feed-in tariffs (FIT) and net metering, provided to solar power plant operators in the city. The feed-in tariffs (FIT) program was launched in 2009, with the Ontario government's Green Energy and Green Economic Act, a method of procuring hydro, solar, wind, and biomass generating capacities to replace the coal-fired power.
• In February 2020, Greengate Power Corporation and Copenhagen Infrastructure Partners signed an agreement to develop and construct the Travers Solar Project in Alberta. Travers Solar is expected to be Canada’s largest operating solar energy project, with an estimated capital cost of approximately CAD 500 million and with a total generating capacity of 465 MW. Construction of the project is anticipated to commence in 2020, with full commercial operations targeted for the end of 2022.
• Furthermore, in order to support solar development in the country, the Government of Canada took two key strategic approaches. The first is to accelerate the deployment of solar power in Canada. The second aims to exploit solar energy's potential, supporting both on-grid and off-grid installations, in turn, driving the solar energy market in the country.

Wind Energy is to Restrain the Market

• Canada is the second-largest market in North America and the ninth-largest wind energy market globally, with 13,413 MW of total installed onshore wind energy capacity, enough to power approximately 3.4 million homes, spread across 301 wind farms across the country as of 2019. In 2019, five projects were commissioned that added 597 MW of new installed capacity, taking the total tally of wind turbines installed to 6,771 by the end of the year.
• Under the country’s Wind Vision 2025, the government aims to increase the wind power capacity to 55 GW by 2025 to meet 20% of its energy needs. However, the country still needs to add more than 42 GW of new capacity to meet the targets, subsequently leading to increased wind energy installation during the forecast period.
• Furthermore, Ontario is Canada’s leader in the wind power market with an installed capacity of 5,436 MW, about 40% of Canada’s total installed wind energy capacity. There are 2,681 wind turbines currently operating in Ontario at 94 separate facilities, making it one of the most lucrative markets for wind energy in Canada.
• The Government of Alberta announced five new wind power projects, with a value of USD 1.2 billion, under its renewable electricity program. The project is expected to generate about 760 MW of affordable renewable electricity to power nearly 300,000 homes.
• Hence, with such targets and an increasing number of installed and in-pipeline wind projects, the country is likely to witness increased demand for wind equipment during the forecast period.

Competitive Landscape

The Canadian solar energy market is partially consolidated. Some of the key players in this market include Canadian Solar Inc., Greengate Power Corporation, AMP Solar Group Inc., Quadra Power Inc., and BluEarth Renewables Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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