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Published: October 13, 2024
The renewable energy sector in Canada has secured a funding boost from the government, which aims to make the country an attractive destination for global companies, alongside achieving climate goals.
According to the latest sector updates from the specialized energy platform (based in Washington), the government has decided to allocate 500 million Canadian dollars (365.1 million US dollars) to support the renewable energy technology support program and the modernization of the electricity grid.
This funding is the first for the Smart Renewable Energy Pathways and Electrification Program (SREP) after its capital was restructured in the 2023 budget, totaling 2.9 billion dollars over 13 years.
The program was launched in 2011, aiming to support the construction of more clean electricity projects, targeting an increase in the share of renewable energy in the electricity mix to 90% by 2030, contributing to the goal of achieving carbon neutrality by 2050.
Developments in renewable energy in Canada
The government stated that the new amount received by the renewable energy sector in Canada will raise the total funding that the program has received to between 4 and 5 billion Canadian dollars, according to a press release on its website.
The Canadian dollar is equivalent to 0.73 US dollars.
Since its launch three years ago, the program has succeeded in financing 76 projects, resulting in new capacities of 2,700 megawatts, providing 700,000 homes with clean electricity, and it will also lead to the reduction of over 3.1 megatons of carbon dioxide annually.
In this regard, the government states that the program is designed to reduce emissions causing global warming and to provide sustainable job opportunities, by continuing to support network modernization, energy storage, and renewable energy in Canada.
The government expects that new projects receiving support will enhance the use and efficiency of existing assets, increase the reliability and flexibility of electricity systems, increase the integration and use of renewable energy and unconventional infrastructure solutions, and achieve economic and social gains while helping to meet the growing demand for clean and affordable electricity.
The government has urged utilities, system operators, and industry organizations to apply for support by submitting a statement of interest to the program administrators.
Funding rounds for projects of other nature are also expected to be held in the coming months.
Offshore Wind Investments
Continuing its support for the renewable energy sector in Canada, the government decided at the beginning of October 2024 to pass a law aimed at unleashing the economic and environmental potential of the offshore wind sector and providing job opportunities in two provinces along the Atlantic coast.
The legislation establishes regulatory framework rules for managing offshore wind projects in the provinces of Newfoundland and Labrador and Nova Scotia, targeting an increase in the authority scope of the sector's regulatory bodies in the two provinces, providing support tools, and updating the land tenure system.
In its statement that the specialized energy platform reviewed, the government said that the offshore wind sector in Canada represents a major economic opportunity, as the global sector is expected to attract investments worth one trillion dollars by 2040.
By harnessing world-class resources, Canada will be able to continue decarbonizing its electricity locally, and externally, it will be in a leading global position to export clean energy and green hydrogen to countries, including Germany.
Government estimates indicate that achieving carbon neutrality will require investments ranging from 125 to 149 billion Canadian dollars annually.
There is also an expected increase in electricity demand amid the shift away from fossil fuels, especially, most demand will come from data centers, currently numbering 239 in operation.
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