Canada’s solar sector is set for strong growth over the next quarter-century, according to a new market outlook from the Canadian Renewable Energy Association (CanREA) and Dunsky Energy + Climate Advisors.
Released on 16 September, Canada’s Renewable Energy Market Outlook: Wind. Solar. Storage presents the first nationwide forecast dedicated to these technologies.
The study highlights “surging electricity demand, increasing cost competitiveness and enabling policy frameworks” as factors positioning wind, solar and storage for rapid expansion.
Vittoria Bellissimo, CanREA’s President and CEO, said the report aims “to offer uniquely Canadian market intelligence to support informed decisions by electricity sector stakeholders, renewable energy and energy storage developers, investors and analysts.”
Although Canada currently ranks 24th worldwide for installed solar capacity, the report projects major gains.
Ahmed Hanafy of Dunsky noted that wind, solar and storage are expected to provide “more than 70% of all new electricity supply capacity deployed between 2025 and 2050,” with annual net investments estimated at $14 – 20bn.
Over the next decade, this could total $143 – 205bn and generate up to 350,000 full-time equivalent jobs.
Leonard Kula, CanREA’s Vice-President of Strategic Initiatives, emphasised the role of solar in decarbonising the grid. “It is going to happen, because solar energy and wind energy are the most affordable and quickly deployable technologies available anywhere in the world today,” he said.
He added that “grid operators increasingly recognise the value that energy storage can deliver in an evolving grid.”
Provincial developments vary. Hydro Québec plans to acquire 3,000 MW of solar power by 2035, alongside wind partnerships with First Nations and local communities. Ontario is expanding procurement for new generation, while Atlantic Canada hosts a range of emerging projects.
Alberta, however, faces “significant uncertainty” due to regulatory and market changes.
The report predicts greenhouse gas emissions from electricity could fall from more than 90 gCO₂/kWh in 2025 to as low as 16.1 gCO₂/kWh by 2035, reaching 10 gCO₂/kWh or below by mid-century.
