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The Canadian Renewable Energy Industry: Market Overview 2021

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The Canadian Renewable Energy Industry: Market Overview 2021

Canada has an electricity generation capacity of 135 GW. While it is expected to touch 170 GW by 2035, the country remains among the leading nations that rely on renewable energy.

In 2016, Canada generated 66.0%renewable energy and remained focused on natural gas and wind energy for its needs.

Additionally, the NEB reports that, by 2035, renewables such as biomass, solar, geothermal, and wind will generate 12% of Canada’s total power generation. Furthermore, Canada is ranked second after Mexico as the United States of America’s leading market for renewable energy.

The Canadian market for power generation includes various products like power boilers, turbine generator sets, nuclear reactors, and other auxiliary equipment. In 2018, these products and renewable energy services combined formed a market worth US$24 billion.

Besides this, Canada also received $11 billion from the U.S. in imports. After a closer look at the market statistics, we can see that domestic operational requirements and provincial policies drive the market.

This is required to match the installed capacity and expected demand and to shift to renewable energy. It can also be seen that Canadian currency trends and international trade act as additional factors that significantly influence the energy market.

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The Effects of the COVID-19 Pandemic

In 2020, the pandemic reduced the world economy to a standstill-like situation. However, the statistics drawn from market trends estimated a mere 3% decrease. Now, this had an impact on almost all major sectors.

At the start of 2021, the economy is slowly reviving and has shown considerable potential for industries to grow. Government bodies at both provincial and federal levels are continually working to maintain the power generation system at a leading pace.

Operational costs are rising slowly and steadily while making the renewable energy market a reliable and profitable one to invest in.

Leading Renewable Energy Sub-Sectors

Several sub-sectors gained prominence as the renewable energy market started growing in 2018. Today, these sub-sectors indicate attractive opportunities for international trade and commerce.

Here are some of the leading renewable energy sub-sectors that investors and companies should keep an eye out for.

  • Switchgear Protecting Electrical Circuits (US$1.96 billion)
  • Pumps for Liquid Elevators and Liquids (US$2.7 billion)
  • Copper wire (US$253 million)
  • Gas Parts and Turbines (US$993 million)
  • Rotary Converters, Electric Generating Sets (US$1.02 billion)

The Canadian Renewable Energy Industry: Market Opportunities

The Canadian market is undoubtedly an attractive one for companies across the globe. It is not only filled with existing assets but also includes several development plans.

To put things in perspective, 60-70%of the total power generation facilities would require replacement within the next decade. Thus, statistics say that total investment in this sector is set to touch US$290 billion by 2030.

In 2019, the Federal Government indicated that funding of US$14.8 billion would be commissioned for infrastructure development projects such as greenhouse gas emission reduction, safe water and clean air systems, promotion of renewable power, etc.

For instance, the Clean Wind Power project and the Renewable Tidal Energy project both having fundings of over US$22 million are expected to benefit the Canadian population.

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Endnotes

The Canadian renewable energy market has seen a promising start in 2021 with the government authorities working to transition to renewable energy. Thus, several opportunities involving equipment, components, materials, and installations for power generation and distribution await companies and investors.

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