Canada’s green transition has been marked by both impressive strides and recent setbacks. As the world accelerates its shift to renewables, Canada’s progress has slowed, raising urgent questions about the nation’s ability to meet its ambitious climate goals. This blog explores the current state of renewable energy development in Canada, the reasons behind the slowdown, the implications for the green transition, and how advanced tools like Avantis are helping stakeholders navigate this complex landscape.
Canada remains a global leader in clean electricity, with 70% of its electricity coming from renewable sources and 82% from non-greenhouse gas (non-GHG) emitting sources like hydro, solar, wind, and nuclear power. Hydroelectricity dominates, providing about 62% of national generation, while wind and solar are growing rapidly but still represent a smaller share. In fact, Canada is the world’s third-largest producer of hydroelectricity and sixth in overall renewable energy production.
Over the last five years (2019–2024), Canada’s installed wind, solar, and energy storage capacity grew by 46%, reaching over 24 GW by the end of 2024. Solar capacity nearly doubled in that period, and energy storage grew by an impressive 192%. Alberta, in particular, has led recent growth, representing 75% of new renewable capacity added nationwide last year.
Yet, despite these achievements, Canada is not on track to meet its net-zero commitments. According to the Canadian Renewable Energy Association, the pace of new wind and solar installations is far below what is required to decarbonize the grid by 2035 and achieve net-zero emissions by 2050.
Recent policy decisions have introduced significant uncertainty. In 2024, Alberta the country’s renewables hotspot—imposed a moratorium on new wind and solar approvals, causing an immediate market freeze and stalling corporate power purchase agreements. Only 52 MW of new renewable capacity was added through corporate agreements in 2024, compared to over 1 GW in 2023. This regulatory uncertainty has left 2.7 GW of solar and 0.5 GW of wind projects “waiting in the wings,” shovel-ready but lacking the green light to proceed.
Ontario, once a leader in renewables, also saw a sharp slowdown after 2018, raising concerns about future power shortages as demand rises. These provincial pauses are particularly problematic given that Canada’s electricity system is governed at the provincial level, making national coordination challenging.
Canada’s legacy electricity grid was designed for centralized, carbon-emitting sources. Transitioning to renewables requires costly upgrades to allow for distributed generation and two-way power flows, which can temporarily compromise reliability and increase costs. Hydroelectric generation, the backbone of Canada’s clean power, has also been hit by droughts, reducing output and forcing some provinces to import power at higher costs.
Electrification of transportation, industry, and households is driving up demand for clean electricity. For example, Ontario’s grid operator forecasts a 75% increase in demand over the next 25 years, with data centers alone expected to consume 8.4 TWh (about 4% of provincial demand) by 2035. Many studies show that Canada will need to double its electricity production by 2050 to support full decarbonization.
Recent U.S. tariffs on Canadian energy exports and Canada’s retaliatory measures have added a layer of uncertainty to the investment climate, affecting cross-border energy trade and project economics. Affordability concerns are also rising, as the cost of upgrading infrastructure and integrating renewables is passed on to consumers.
Despite these challenges, the fundamentals for renewables in Canada remain strong. The country has vast untapped wind and solar resources, declining technology costs, and a skilled workforce. The federal government continues to provide incentives, such as a 30% investment tax credit for renewable projects, and is funding community-led clean energy initiatives, especially in Indigenous and remote communities.
Key priorities for accelerating the green transition include:
In this rapidly evolving and uncertain environment, access to timely, accurate, and actionable market intelligence is critical for investors, policymakers, and corporate decision-makers. This is where platforms like Avantis are proving invaluable.
Avantis is an AI-powered market intelligence platform designed to streamline research and unlock insights from millions of documents and securities filings. For stakeholders in the renewable energy sector, Avantis offers several key advantages:
Canada’s green transition is at a crossroads. While the country has made impressive gains in renewable energy, the recent slowdown threatens its ability to meet climate commitments and maintain energy security. Overcoming political, regulatory, and infrastructure barriers will require urgent action, bold policy leadership, and smart investment.
Advanced tools like Avantis are empowering stakeholders to make informed decisions, identify emerging risks, and seize new opportunities in this dynamic market. As Canada strives to get back on track, leveraging cutting-edge market intelligence will be essential to accelerate the buildout of renewables and secure a clean, resilient, and prosperous energy future.
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