Canada will play a leading role in shaping its energy future, as the country charges full speed ahead on its clean energy transition. According to GlobalData, Canada’s renewable power capacity is expected to increase drastically, reaching 70.9 gigawatts (GW) in 2035. At the heart of this surge will be a historic focus on wind and solar energy. This ambitious growth is backed by a comprehensive set of policies and initiatives that support the transition to net-zero emissions.
The country’s clean energy commitment shines through a flurry of recent legislative efforts. Canada’s ambitious energy strategy is heavily based on these four cornerstone policies. These such as the Smart Renewables and Electrification Pathways Program, the Clean Electricity Regulations, and the Net-Zero Emissions Accountability Act. These frameworks help to facilitate the growth of renewable energy generation and guarantee that the transition is both durable and equitable.
Canada’s impressive development in clean energy capacity is supported by financial incentives, such as the 30% Clean Technology Investment Tax Credit. On top of that, the Canada Infrastructure Bank has dedicated CAD 10 billion (USD 7.4 billion) expressly for clean power projects. These economic supports are important because they ultimately create the financial certainty and resources for greater investment in renewables technologies.
From 2024 through 2035, Canada’s renewable capacity will jump tremendously. It’s estimated to expand at a remarkable compound annual growth rate (CAGR) of 7.2%. This is the beginning of a major wave of new renewable generation. It will grow from 86.8 terawatt-hours (TWh) in 2024 to an astounding 154.5 TWh by 2035—a strong compound annual growth rate (CAGR) of 5.4%. This increase will be mostly fueled through the continued march of solar photovoltaic technology improvements and the rapid acceleration of onshore wind deployments.
We predict this solar photovoltaic capacity will continue to increase, reaching 26.1 GW by 2035. At the same time, onshore wind capacity is expected to increase to a remarkable 35.7 GW. Large hydropower will continue to play a dominant role in Canada’s energy landscape. In 2024, this share will be close to 48.5% of the overall installed capacity. In addition, Canada has committed to phasing out unabated coal-fired generation by 2030, committing even deeper to a clean energy future.
Canada is making big moves to expand its clean energy agenda. Its goal is to find the balance between fulfilling domestic energy needs and playing a role in the world’s sustainability efforts. The comprehensive approach that combines policy support, financial investment, and technological innovation positions Canada as a leader in the renewable energy sector.
