Canada Wind Energy Market - Growth, Trends, and Forecast (2020-2025)
The Market is Segmented by Location of Deployment (Onshore and Offshore).
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
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The market for wind energy in Canada is expected to register a CAGR of more than 5% during the forecast period of 2020-2025. Canada holds the second-largest installed wind power capacity in North America, with a total installed capacity of 13,413 MW in 2019. Moreover, in 2020, the country expects an increase in its installed wind energy capacity, which is likely to be driven by the number of such new wind projects that are likely to come during the year. Additionally, the declining costs of wind technologies are becoming competitive with fossil fuel sources, and additional subsidies on wind energy systems are further driving the wind energy market. On the other hand, in the absence of any new initiatives, an underdeveloped power grid of Canada is expected to hinder the growth of the wind energy market in the coming years.
Canada has been focusing on onshore wind power, which is expected to dominate the market owing to high investment and better wind current, thus, providing economic viability for large projects.
The Canadian wind industry is focusing on generating 60% of electricity from renewable energy by 2030, by attracting foreign investment. This, in turn, is expected to provide a better opportunity to the Canadian wind energy market in the coming future.
Increasing wind installations, owing to the projects announced and the ambitious renewable energy targets, are expected to drive the wind energy market in Canada during the forecast period.
Scope of the Report
The scope of the Canadian wind energy market report includes:
Location of Deployment
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Key Market Trends
Onshore Wind Power to Dominate the Market
During 2019, Canada increased its installed wind power capacity by 597 MW, registering a 5% increase over the previous year. All of the new wind capacity added in 2018 came from the onshore project, and the year 2019 witnessed the completion of five onshore projects, representing over USD 1 billion investment.
As of 2019, Canada ranked eighth in the world in terms of total onshore installed capacity. There were 301 wind farms and 6,771 wind turbines operating across the country, as of 2019. In addition, the country witnessed around 70% dip in the wind energy costs during 2009-2019.
Moreover, the country has a policy in place under its energy transition law, to generate more than half of its electricity using clean energy sources by 2030, and long-term electricity auctions support this target. The Canadian government was primarily focusing on expanding and liberalizing the electricity market, by opening the industry to private and foreign investments, which may drive the onshore wind energy market during the forecast period.
Furthermore, the production of wind power in the country was initially inspired by environmental concerns, which have been superseded by commercial interests. Moreover, the increased reliability convinced large companies to invest in renewable energies, such as wind, for fulfilling the increasing demand for electricity.
Hence, with several onshore wind energy projects under operation and others in the planning and construction phase, owing to investment and government policies, the Canadian wind energy market is expected to grow during the forecast period.
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Upcoming Projects and Investments in Wind Energy Likely to Drive the Market
Canada holds the second-largest installed wind power capacity in North America, with a total installed capacity of 13,413 MW in 2019. This installed capacity is enough to power approximately 3.4 million homes in the country.
With the increasing need for affordable, reliable, clean, and diverse electricity supply, the government and utilities across the nation are increasingly considering wind power as a solution. Moreover, with the country’s unparalleled wind resources, there are ample opportunities to maximize the economic and environmental benefits associated with the development of wind energy.
Moreover, as of 2019, Canada had 31 offshore wind farm projects. These projects are currently neither operating nor in the build phase, and they have not been consented or have applied for consent. Furthermore, the construction of none of these projects has progressed enough to connect the turbines and generate electricity. These projects are expected to start from 2021 to 2022.
The country has been looking for opportunities and potential locations across the national boundaries for new projects. In the past few years, Alberta emerged as an attractive market for investors, as it is likely to witness about USD 8.3 billion of investment for developing wind energy projects by 2030.
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, enough to power nearly 300,000 homes. Apart from Alberta, Saskatchewan is likely to witness huge investments, as the province aims to increase its renewable capacity to 50% by 2030.
Hence, the above-mentioned factors are likely to drive the Canadian wind energy market during the forecast period.
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The Canadian wind energy market is moderately fragmented. The major companies include Siemens Gamesa Renewable Energy SA, General Electric Company, Vestas Wind Systems, Acciona SA, Capital Power Corporation, and Enbridge Inc.