Canada is the sixth largest electricity producer in the world, producing 600 TWh annually and is the fourth largest exporter of power, with all of its exports going to the U.S. Canada provides a large market opportunity for turbines, tower and other large, expensive technologies made in U.S.
Canada is currently the 9th largest producer of wind energy in the world, representing about 2.3 % of Canada’s total electricity demand. The Canadian federal government is committed to seeing 90 % of Canada’s electricity generated by non-emitting sources by 2020. Among all renewable energy production, wind is expected to grow the most. According to CanWEA’s Wind Vision, by 2025 20% of the country’s electricity demand will be met through its wind farms.
Experts predict that between now and 2025, 15% of Canada’s energy mix will be phased out and will need replacement. The wind energy sub-sector main procurement needs include wind turbines, tower sections, rotor blades, casting, forgings and transformers. Investments of approximately USD 185 billion will be required – $95 billion in generating capacity, $27 billion in transmission and $ 63 billion in distribution.
The Canadian federal government together with provincial governments offer strong political incentives and show real commitment to wind energy. The proximity to the United States, the similarities between the two markets, and NAFTA’s low trade barriers makes Canada a very promising market for American exports. Any growth in the Canadian renewable energy market will reflect as an increase in U.S. exports.