Renewables are not just an alternative; they’re a necessity for clean energy transitions. The Renewable Energy market, consisting of solar, wind, hydropower, and biofuels sources, is pivotal in the global endeavour to cultivate a more sustainable and less carbon-intensive energy landscape.
In 2022, the growth in renewables’ contribution to the energy supply marked the second-highest historical surge, with an addition of approximately 340 GW in capacity. Capacity is set to increase by one third this year due to rising fossil fuel costs, energy security worries, and stronger policies, leading to more use of solar and wind energy.
Currently, only Solar PV aligns with the goals of the Net Zero Emissions by 2050 (NZE) Scenario. Other renewable sources, like wind, hydro, geothermal, solar thermal, and ocean energy, must grow at a much faster pace to meet these targets. While non-bioenergy renewables currently make up around 5% of the total energy supply, this needs to jump to about 17% by 2030 in the NZE Scenario. To reach this target, the annual use of Renewable Energy must grow by roughly 13% from 2023-2030, which is double the rate of the last five years.
Canada’s vast land and diverse geography provide a wealth of Renewable Energy resources, including water, wind, biomass, solar, geothermal, and ocean energy. In 2022, renewable sources made up 16.9% of Canada’s primary energy supply, establishing the country as a global leader in Renewable Energy production and use.
The country’s primary Renewable Energy source is hydroelectric power, with moving water accounting for 59.3% of Canada’s electricity generation. This makes Canada the 3rd largest hydroelectricity producer globally. Approximately 500 large and small-scale hydro facilities are spread throughout the country.
Following hydroelectricity, wind energy and solar photovoltaic (PV) are the fastest-growing sources of electricity in Canada. Wind energy accounted for about 6% of the country’s electricity production in 2022, with installed capacity increasing from 1,846 megawatts (MW) in 2007 to 15,132 MW in 2022. Solar PV has also seen growth, with cumulative installed capacity growing from 26 MW in 2007 to 6,452 MW in 2022.
In 2021, The Canadian Net-Zero Emissions Accountability Act became law, enshrining in legislation Canada’s commitment to achieving net-zero emissions by 2050. This has led to robust call-to-actions in the form of the The Pan-Canadian Framework on Clean Growth and Climate Change and CanREA’s 2050 Vision.
The Pan-Canadian Framework outlines ambitious climate policies aimed at further increasing renewable electricity generation and phasing out coal. The framework emphasizes the importance of expanding wind and solar energy capacities, which are expected to play a key role in this transition.
The Canadian Renewable Energy Association (CanREA) has a bold vision for 2050. Achieving these goals requires collaboration between federal and provincial governments, utilities, system operators, and regulators. The key tasks that have been outlined include decarbonizing Canada’s electricity production by 2035 for use in other sectors, rethinking electricity infrastructure investments and modernizing its markets and regulations, as well as building new wind, solar and energy storage capabilities.
In Ontario, hydro is the dominant renewable electricity source, with wind, solar, and biomass trailing behind. Together, non-hydro renewables contribute to 16,451 GW.h, marking the highest contribution among all provinces. In 2018, over one third of its electricity generation came from renewable sources, with 92% was deriving from sources that didn’t emit greenhouse gases. Remarkably, about 40 of the province’s hydropower facilities have been running for over a century.
The renewable energy domain in Ontario is currently witnessing a significant surge, fueled by the province’s growing power needs. The province’s system planner, the IESO, has projected capacity requirements of up to 1,500 MW between 2025 and 2027.
Furthermore, IESO also underlined the gaps to be filled to achieve a fully decarbonized electricity sector by 2050 and pursue rigorous electrification.
The system would need to expand to over twice its current size, from 48,000 MW to 88,000 MW, with an estimated expense nearing CA $400 billion.
This will demand substantial capital, materials, and workforce investments, coupled with the advancement of nascent technologies.
Ontario hosts world-class universities like The University of Toronto, McMaster University, University of Waterloo, Wilfrid Laurier University, Conestoga College, Western University, and many more that dispense top tech talent hired across the globe. In fact, graduates from the University of Waterloo are known to be the 2nd most frequently hired by Silicon Valley companies.
A particularly significant development in Ontario is the recently established Environmental and Related Technologies Hub (EaRTH) District, that fosters CleanTech companies by providing access to exceptional R&D facilities, a skilled workforce, and readily available serviced industrial and commercial spaces.
The EaRTH District comprises five GTA Colleges and Universities, Centennial College, the University of Toronto Scarborough (UTSC), Ontario Tech University, Durham College, and Trent University. Together they are dedicated to sector-focused collaboration in the form of expertise, knowledge mobilization, active collaboration, and job creation to develop the region’s clean, green, sustainable technology sectors.
Canada’s trade agreements cover markets valued at over US $50 trillion with 1.7 billion consumers. Canada has free trade agreements with the largest manufacturing markets in the world: the United States (USMCA), the European Union (CETA) and Asia-Pacific (CPTPP).
Your business can access 187 million consumers within a day’s drive of the Greater Toronto Area. Ontario has 4 international and 300 regional airports, 250,000 km of roads and highways, a dozen border crossings and the 6th most internationally connected airport in the world.
largest Renewable
Energy sector in Canada
largest Renewable
Energy sector in Canada
in mineral exploration investments in 2022
operational
waterpower facilities
of all ethanol production
in the country
of generated electricity
is from renewables
Funding, Resources and Organizations
Using the Business Benefit Finder, you can find many more government grants and incentives relevant to your tech startup.
Canada’s Innovation Superclusters foster collaboration among industry leaders, SMEs, non-profit organizations, and post-secondary institutions to accelerate growth in five promising sectors:
As a startup in the Renewable Energy space, if you think your product or service can add value to any of these sectors, you can apply for membership. Members have the opportunity to propose and participate in Supercluster projects. Approx CA $750 million over five years has been earmarked for Canada’s Global Innovation Clusters.
Other resources include:
represents organisations and individuals directly involved in the development and application of wind, solar and energy storage technologies, products and services. Visit Site
is a membership-based organisation that advances the energy storage industry in Canada through collaboration, education, policy advocacy and research. Visit Site
is a community bringing together knowledge and opportunities to realise the benefits of hydrogen energy. Visit Site
works to promote, foster, and grow Ontario’s clean technology sector.
Visit Site
represents more than 200 companies, providing environmental products, technologies and services to government and industry. Visit Site
provides real world technology demonstration opportunities and encourages collaboration between private companies and academic researchers to accelerate and commercialize innovative water technologies. Visit Site
at the University of Waterloo, offers collaboration opportunities for energy R&D, education, training, and commercialization activities. Visit Site
