The Canadian market for Renewable Energy Equipment (REQ) is experiencing a solid growth due to governmental programs, which stipulate the rules and guarantee favorable pricing structure for renewable electricity production. The REQ market is experiencing significant growth in some of the provinces, mainly in Ontario, Quebec, and British Columbia. Both imports and exports have generally been trending upwards for the past several years. The objective of this report is to analyze the current status and the trends in the Canadian REQ industry, especially in the wind and PV solar market. The report examines the market segments and evaluates opportunities and best prospects for U.S. manufacturers.
The Green Energy sector in Canada has created a strong demand for solar panels, wind turbines and related components. The country is expected to experience significant growth in “green technologies” in the upcoming years as alternative energy initiatives are being implemented throughout the provinces. Particularly, two provinces – Ontario and Quebec – are implementing incentive programs to develop renewable energy resources.
In September 2009 Ontario Government launched a new Feed-In Tariff (FIT) Program, which stipulates the rules and guarantees favorable pricing structure for small-scale renewable electricity production in the province. The legal framework for this program is the Green Energy Act approved by the Ontario legislator earlier in 2009, which allows significant increase of installed capacity of solar, wind and other “green energy” projects. Since the launch of the program, 510 small-scale and 184 large-scale projects were contracted with over 2,600 MW of renewable energy capacity on the grid.
The FIT Program guarantees considerably higher prices for electricity production than any similar programs on the continent. Investors are offered very stable conditions with prices fixed for 20 years for most projects. Tariffs are differentiated by various project factors, such as the technology type (solar power, wind, biomass, biogas, water), tranches size, and specific location (rooftop or ground mounted for solar; on-shore or off-shore for the wind, etc). For detailed information, please, check Feed-In Tariff Prices.
The highest tariffs are offered for micro-production solar PV projects in order to stimulate the development of electricity production by individual households and small-scale commercial businesses (CAD$0.82 per KWh). This explains the booming concentration of PV projects in the province.