Allthough the U.S. and Canada have federal regulations in place for renewable industry, states with strong policy frameworks have been the major contributors to renewable capacity.
15 October 2013
Strong local policies drive renewables growth in Americas
Allthough the U.S. and Canada have federal
regulations in place for renewable industry,
states with strong policy frameworks have been
the major contributors to renewable capacity in
both countries, according to a new report. In
2012, the Mexico introduced a strategy that is
strongly expected to boost renewable power
Windmills in the prairies, Alberta Canada. © Brandon Smith
The growth momentum of the renewable industry in the U.S. and Canada has primarily been
facilitated by the support mechanisms provided by the federal and state governments.
The development patterns for the renewable industries in these countries have been largely
dependent upon the level of support mechanisms provided by the state governments, shows the
report from GlobalData.
In the U.S., the growth of the renewable energy industry has been led by the state-level Renewable
Portfolio Standard (RPS), combined with other tax incentives and subsidies.
California and Texas, which have been providing policy support to the renewable energy industry
for more than a decade, are the leaders in terms of renewable capacity in the country.
The growth of the wind industry in the U.S. has primarily been facilitated by the support
mechanisms provided by the federal and state governments. The Production Tax Credit (PTC) is
credited as being one of the most important policies involved in driving the wind industry in the US
to new heights.
The Canadian government is supporting renewable energy with the ecoENERGY program. Among
the provinces in Canada, Ontario with its comprehensive feed-in tariff (FiT) program, is the leading
state in terms of renewable power capacity.
Canada is one of the leading countries in terms of the utilization of renewable energy resources for
electricity generation and heating. In 2012, renewable energy, including small hydro, accounted for
9.3 percent of electricity generation in Canada. Wind power is the most prominent source of
renewable energy in the country, generating last year around 50 percent of Canada’s renewable
Mexico's new strategy to boost renewable power
In addition to the U.S. and Canada, the report 'North and South America - Renewable Energy Policy
Handbook 2013' presents an in-depth analysis of the renewable energy policies in Brazil, Argentina
Mexico possesses substantial reserves of coal, oil and gas and the country's power sector is
dominated by these sources. Fossil fuels account for more than 90 percent of the country's power
capacity. Renewable power capacity has increased at a slow rate of 6.6 percent between 2000 and
2012 to 2,824 megawatts (MW) in 2012.
In 2012, the government introduced the National Energy Strategy, which establishes a roadmap for
energy policies, to be implemented over the coming 15 years, and sets a specific goal for the
generation of 35 percent of electricity from non-fossil sources in order to reduce greenhouse gas
emissions during the period.
The target under this strategy also limits the share to be accounted for by generation from fossil fuel
technologies to 60 percent in 2035 and 5 percent in 2050. The strategy is strongly expected to
encourage the usage of renewable sources for power generation.