Market Trends of Canada Wind Energy Industry
The Onshore Segment is Expected to Dominate the Market
- Electricity from wind energy is one of Canada's fastest-growing methods of electrical generation. Canada's geography allows it to capitalize on large amounts of wind energy. Increased wind energy deployment benefits include grid-wide energy savings and reductions in greenhouse gas emissions and air contaminants (including SOX, NOX, and mercury).
- In 2023, Canada reached an installed onshore wind energy capacity of 16.989 GW. All of the new wind capacity added in 2023 came from the onshore project. According to the International Renewable Energy Agency, around 1724 MW of new wind power generation was installed in 2023, a significant rise from the previous years.
- In July 2023, ACCIONA Energía initiated the construction of Forty Mile, a 280MW wind project in the County of Forty Mile No. 8 in Alberta, Canada. The project is expected to be commissioned in 2025 and is being developed by Renewable Energy Systems Canada Inc. Such projects are expected to drive onshore wind development during the forecast period.
- Under its energy transition law, the country aims to generate more than half of its electricity using clean energy sources by 2030. Long-term electricity auctions support this target. The Canadian government primarily focuses 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.
- Hence, with several onshore wind energy projects under operation and others in the planning and construction phases, the Canadian wind energy market is expected to grow during the forecast period due to investment and government policies.
Understand The Key Trends Shaping This Market
Download PDF
Upcoming Projects and Investments in Wind Energy are Expected to Drive the Market
- According to Statics Canada, wind and solar energy generation represented 7.2% of Canada’s total electricity in 2023, making it the region's significant renewable energy source. Ontario, Quebec, and Alberta are the provincial leaders in wind power capacity. In 2023, Canada reached an installed wind energy capacity of 16.989 GW.
- With the increasing need for an affordable, reliable, clean, and diverse electricity supply, the government and utilities nationwide are increasingly considering wind power. With the country's unparalleled wind resources, ample opportunities exist to maximize wind energy development's economic and environmental benefits.
- According to the Canadian Renewable Energy Association, in 2023, Canada added 2.3 GW of new installed capacity, including more than 1.7 GW of new utility-scale wind, nearly 360 MW of new utility-scale solar, 86 MW of new on-site solar, and 140 MW / 190 MWh of energy storage. Such additions in renewable installed capacity will eventually fuel investment in upcoming wind projects.
- The country has been looking for opportunities and potential locations across national boundaries for new projects. In the past few years, Alberta has emerged as an attractive market for investors, as it is likely to witness about USD 8.3 billion in investment in developing wind energy projects by 2030. Apart from Alberta, Saskatchewan is expected to witness huge investments as the province aims to increase its renewable capacity by 50% by 2030.
- Further, the government is focusing on developing wind projects on the country's offshore coast to drive renewable generation. For instance, in December 2023, the Minister of Energy and Natural Resources of Canada signed a Memorandum of Understanding to develop offshore wind projects within its inland bays to enable the development of offshore wind projects in Newfoundland.
- Hence, such factors are expected to drive the Canadian wind energy market during the forecast period.
