Canada Renewable Energy Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Canada Renewable Energy Market Report is Segmented by Type (Hydro Energy, Wind Energy (On-Shore and Off-Shore), Solar PV (Utility-Scale and Distributed), Bioenergy (Solid Biomass, Biogas, and Waste-To-Energy), Geothermal, and Ocean and Tidal), and End User (Residential, Commercial and Industrial, and Utilities). The Market Size and Forecasts are Provided in Terms of Installed Capacity (GW).

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Canada Renewable Energy Market Size and Share

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Canada Renewable Energy Market Analysis by Mordor Intelligence

The Canada Renewable Energy Market size in terms of installed base is expected to grow from 115.09 gigawatt in 2025 to 149.12 gigawatt by 2030, at a CAGR of 5.32% during the forecast period (2025-2030).

Hydro assets continue to underpin generation, yet wind and solar additions outpace legacy growth as carbon-pricing moves above CAD 170 per tonne. Falling levelized costs and an expanding pool of corporate power-purchase agreements bolster project bankability, while Indigenous equity structures lower financing hurdles for installations in remote regions. Green hydrogen export corridors widen the demand base beyond domestic electricity needs, and federal clean-technology incentives improve residential economics, nudging households toward distributed solar-plus-storage solutions.

Key Report Takeaways

  • By technology, hydro held 76% of Canada's renewable energy market share in 2024, while solar photovoltaic is forecast to expand at a 9% CAGR through 2030.
  • By end user, utilities accounted for 61% of the Canada renewable energy market size in 2024; the residential segment posts the fastest growth at 8% CAGR through 2030.

Segment Analysis

By Type: Hydro Dominance Faces Solar Disruption

Hydro plants supplied 76% of the Canada renewable energy market in 2024, reflecting a mature asset base and abundant river systems. Solar occupies a smaller share yet expands at a 9% CAGR as module prices fall and provinces roll out net-metering programs. Quebec plans to triple wind capacity by 2035, pairing variable resources with hydro reservoirs that act as natural storage. Western Prairie wind farms feed long-haul lines into Ontario and Quebec, though curtailment risk persists until planned upgrades near completion. Bioenergy remains a niche, serving industrial heat loads in forestry regions. Geothermal and tidal pilot projects advance slowly as developers test commercial viability amid high upfront costs.

Falling solar costs catalyze residential and commercial rooftop uptake, especially where clean-technology investment tax credits narrow payback periods. Hybrid projects combine PV, wind, and battery systems to flatten production curves, easing grid integration. Hydro refurbishments extend asset life and raise capacity, but environmental permitting for new dams remains stringent. Technology diversity lowers system risk and builds resilience against hydrological volatility driven by climate change.

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Note: Segment shares of all individual segments available upon report purchase

By End User: Utility Control Shifts Toward Distributed Models

Utility-owned producers met 61% of end-user demand in 2024, leveraging scale and long-term contracts to finance large hydro and wind parks. The residential segment grows 8% annually as households install rooftop arrays and lithium-ion batteries that qualify for the federal clean-tech investment credit, eroding retail sales volumes for incumbents. Commercial buyers ink direct PPAs to hedge future power costs and satisfy sustainability mandates, while miners and data-centre operators anchor utility-scale solar in energy-rich Alberta.

Distributed resources necessitate two-way power flows, pushing regulators to revamp interconnection rules and time-of-use tariffs. Aggregated behind-the-meter assets begin to participate in capacity markets, offering demand response and ancillary services. Utilities respond by investing in distribution automation and customer-sited storage, pivoting toward platform service models that monetize grid reliability rather than volumetric sales alone.

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Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Quebec commands the largest provincial footprint due to legacy hydro capacity and a CAD 185 billion strategy to triple wind installation, modernize transmission, and export surplus power to the northeastern United States. Its 2024 tender procured 1,550 MW of wind at 7.8 cents per kilowatt-hour, maintaining cost competitiveness despite inflationary pressure. Indigenous partnerships underpin most new projects, granting communities equity stakes and revenue sharing that streamline permitting.

British Columbia accelerates procurement to meet a projected 15% load rise by 2030. BC Hydro’s recent award of nine Indigenous-majority wind contracts totaling nearly 5,000 GWh annually reflects reconciliation priorities and favorable coastal wind regimes. The province exempts wind farms from environmental assessments under defined thresholds, shortening lead times while maintaining robust First Nations consultation protocols.

Alberta hosts 75% of recent renewable investment, yet grapples with policy turbulence. A six-month moratorium lifted in early 2024, but land-use restrictions on agricultural parcels and scenic zones lengthen development cycles. Grid stability concerns spur market redesign, and transmission build-out lags generation additions. Still, superior solar irradiance and robust wind resources suggest large-scale potential once regulatory clarity improves.

Competitive Landscape

Market structure remains moderately consolidated. Hydro-Québec, BC Hydro, and Ontario Power Generation dominate their home jurisdictions by owning hydroelectric fleets and integrated transmission assets. Independent power producers such as Brookfield Renewable Partners, Northland Power, and Innergex Renewable Energy expand through offshore wind, utility-scale batteries, and global diversification. Indigenous joint ventures increasingly win provincial tenders, altering competitive hierarchies and embedding community ownership into project finance.

Consolidation gains momentum. CDPQ’s CAD 10 billion acquisition of Innergex elevates pension-fund influence over project pipelines, while LS Power’s CAD 2.5 billion purchase of Algonquin’s renewables arm signals inbound US capital seeking exposure to long-dated Canadian contracts. Developers hedge regulatory risk by blending merchant exposure with contracted revenues and assembling multi-technology portfolios that capture ancillary-service revenues from storage.

Strategic themes include vertical integration into green hydrogen, co-location of renewables with data-centre load, and deployment of long-duration storage. Companies leverage Canada’s critical minerals endowment to explore domestic battery supply chains, though processing scarcity keeps immediate focus on imported cells. Competitive pressures spur innovation in financing structures, with revenue-based securitization and synthetic PPAs gaining traction among institutional investors.

Canada Renewable Energy Industry Leaders

  1. Hydro-Québec

  2. Brookfield Renewable Partners

  3. Ontario Power Generation

  4. TransAlta Renewables

  5. BC Hydro

  6. *Disclaimer: Major Players sorted in no particular order
Canada Renewable Energy Market Concentration
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Recent Industry Developments

  • June 2025: Canada Infrastructure Bank invested CAD 108.3 million in the Mesgi'g Ugju's'n 2 wind farm, marking the first Indigenous equity loan and setting a new ownership precedent.
  • March 2025: Construction started on the CAD 450 million Goose Harbour Lake wind project in Nova Scotia, featuring 24 seven-MW turbines.
  • February 2025: Innergex Renewable Energy agreed to be acquired by CDPQ for CAD 10 billion, consolidating the independent power segment.
  • January 2025: LS Power completed its CAD 2.5 billion acquisition of Algonquin Power’s large-scale renewables.

Table of Contents for Canada Renewable Energy Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Federal carbon-pricing escalation
    • 4.2.2 Accelerated coal-to-renewables displacement mandate
    • 4.2.3 Declining LCOE of onshore wind & utility-scale PV
    • 4.2.4 Surge in corporate PPAs from data-centre & mining sectors
    • 4.2.5 Indigenous equity-ownership frameworks unlocking capital
    • 4.2.6 Green-hydrogen export corridor initiatives
  • 4.3 Market Restraints
    • 4.3.1 Transmission congestion & curtailment risks
    • 4.3.2 Lengthy provincial site-permitting timelines
    • 4.3.3 Critical-minerals supply-chain tightness for PV & storage
    • 4.3.4 Indigenous land-rights disputes delaying projects
  • 4.4 Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Suppliers
    • 4.7.3 Bargaining Power of Buyers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry
  • 4.8 PESTLE Analysis

5. Market Size & Growth Forecasts

  • 5.1 By Type
    • 5.1.1 Hydro Energy
    • 5.1.2 Wind Energy (On-shore, Off-shore)
    • 5.1.3 Solar PV (Utility-scale, Distributed)
    • 5.1.4 Bioenergy (Solid Biomass, Biogas, Waste-to-Energy)
    • 5.1.5 Geothermal
    • 5.1.6 Ocean and Tidal
  • 5.2 By End User
    • 5.2.1 Residential
    • 5.2.2 Commercial and Industrial
    • 5.2.3 Utilities

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves (M&A, Partnerships, PPAs)
  • 6.3 Market Share Analysis (Market Rank/Share for key companies)
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
    • 6.4.1 Hydro-Quebec
    • 6.4.2 Brookfield Renewable Partners
    • 6.4.3 Ontario Power Generation
    • 6.4.4 TransAlta Renewables
    • 6.4.5 BC Hydro
    • 6.4.6 Canadian Solar Inc.
    • 6.4.7 EDF Renewables
    • 6.4.8 ENGIE SA
    • 6.4.9 Siemens Gamesa Renewable Energy
    • 6.4.10 Vestas Wind Systems
    • 6.4.11 Acciona SA
    • 6.4.12 EDP Renewables
    • 6.4.13 Enel Green Power
    • 6.4.14 Northland Power
    • 6.4.15 Innergex Renewable Energy
    • 6.4.16 Algonquin Power & Utilities
    • 6.4.17 Pattern Energy Group
    • 6.4.18 Capital Power
    • 6.4.19 Boralex Inc.
    • 6.4.20 IOGEN Corporation
    • 6.4.21 Bio-En Power Inc.

7. Market Opportunities & Future Outlook

  • 7.1 White-space & Unmet-Need Assessment
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Canada Renewable Energy Market Report Scope

The scope of the Canadian renewable energy market report includes:

By Type Hydro Energy
Wind Energy (On-shore, Off-shore)
Solar PV (Utility-scale, Distributed)
Bioenergy (Solid Biomass, Biogas, Waste-to-Energy)
Geothermal
Ocean and Tidal
By End User Residential
Commercial and Industrial
Utilities
By Type
Hydro Energy
Wind Energy (On-shore, Off-shore)
Solar PV (Utility-scale, Distributed)
Bioenergy (Solid Biomass, Biogas, Waste-to-Energy)
Geothermal
Ocean and Tidal
By End User
Residential
Commercial and Industrial
Utilities
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Key Questions Answered in the Report

What is the current size of the Canada renewable energy market?

The market reached 115.09 GW in 2025 and is on track to hit 149.12 GW by 2030, growing at a 5.32% CAGR.

Which technology holds the largest share of Canada’s renewable mix?

Hydro accounted for 76% of Canada renewable energy market share in 2024, owing to extensive historical investments in dams and reservoirs.

Why are Indigenous equity partnerships significant in Canadian renewables?

These partnerships unlock capital, streamline permitting and ensure local economic benefits, as illustrated by the CAD 108.3 million Mesgi'g Ugju's'n 2 wind financing.

What factors could restrain growth over the next two years?

Transmission congestion and lengthy provincial permitting are the most immediate hurdles, together shaving nearly 1.5 percentage points off projected CAGR.

How is green hydrogen influencing future capacity additions?

Export-oriented hydrogen projects, such as the CAD 8 billion Newfoundland initiative, demand large new wind and solar builds and open access to European markets.

Which province shows the fastest near-term growth potential?

British Columbia is gaining momentum with Indigenous-led wind procurements that add nearly 5,000 GWh annually to the provincial grid.

Page last updated on: July 10, 2025

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