Good to see that more money is being invested into alternative energy. Hopefully this industry will begin to see subsidies similar in scale that the oil and gas industry does.
From the ISIS Research Centre, Sauder School of Business
April 10, 2014
Canada's Clean Energy Investments Surge
By Justin Bull
Canada received $6.5 billion in clean energy investments in 2013,
according
to a new report released by the Pew Charitable Trusts. This represents a
45 percent increase from 2012 — the highest rate of growth in the
Americas and the second-highest in the G20.
Outside of Canada, only two other nations – Japan and the United
Kingdom – saw increases in clean energy investments in 2013. Other
countries, notably the United States and Brazil, experienced large
declines, with respective investment levels dropping by 55 percent and 9
percent during the same period.
Wind remained the biggest source of investment in Canada: $3.6
billion nationwide, for some 1.5 gigawatts of new wind capacity
installed in 2013. Big investments in Ontario and Alberta led the way,
with
South Kent and
Blackspring Ridge projects generating a combined 570 megawatts.
Solar attracted $2.5 billion in investments for 500MW of new power
generation. This represents a doubling of 2012’s investment levels, and
reflects the steady decline in the price of photovoltaic panels that
helps make solar projects economically viable, even in the absence of
supportive policies.
The report, titled "Who’s Winning the Clean Energy Race?" (full version available for download
here) maintains that government policy is central to Canada’s clean energy future. At the federal level, the latest budget has
expanded the clean energy generation equipment that qualifies for accelerated capital cost allowances.
But the report also suggests that it is provincial, not federal,
policy that is the real driver of clean energy investments in Canada.
Pending changes to the
controversial Green
Energy Act in Ontario were seen as perhaps the biggest motivator of
investors. In that province, feed-in-tariffs – long-term contracts
offered to renewable energy producers – are poised for reform. This
motivated investors to speed-up project deployment in order to secure
future incentives.