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(Last updated: 27 May 2009)
Trends and opportunities
The market
The photovoltaic market
Due to Canada’s history of low-cost electricity, the domestic photovoltaic market has not grown as rapidly as elsewhere. Canadian firms have, however, secured a significant share of the international market with a variety of novel technologies, products and services, while catering to the emerging domestic market. Canada can offer expertise in:
- Manufacturing process technologies for raw materials, solar cell and solar module production.
- Photovoltaic (PV) manufacturing equipment and automation expertise.
- High efficiency solar-LED (light emitting diode) lighting systems.
- Novel photovoltaic module products.
- Hybrid concentrator PV-active solar thermal systems.
- Expertise in the design of solar electric systems for off-grid, remote or northern locations.
- Design of solar electric systems for large-scale grid-tied applications.
- Consulting services for site assessment and load analysis.
- Portable solar chargers for consumer electronics (Industry leading solar charge controllers, inverters, rectifiers and other balance of system components).
- Installation of off-grid power systems for rural telecommunication systems.
These strengths have resulted in project success domestically and internationally. Canada’s domestic PV market is dominated by off-grid applications and has averaged 20%+ growth annually over the past decade. However, in recent years there’s been increased demand for on-grid applications. Canadian industry, academics, and government are actively engaged in PV research and development.
The solar thermal market
Canada’s solar industry is an innovator in the active solar thermal field range of scalable and versatile technology products, and an array of design, and installation services that include:
- Turnkey solar heating systems for various commercial, industrial, institutional and residential.
- Solar collectors for domestic and commercial water heating.
- Solar air collectors for space heating and ventilation applications.
- Solar air heating systems for crop drying and other industrial applications.
- Solar pool heating systems for residential, commercial and institutional applications.
- Solar water heaters for year-round use, even under extreme cold weather conditions.
Through market-driven research and development, Canadian companies developed technologies, which established them as experts in several ‘green’ solar heating applications. Canada focuses its research and development activities toward low-temperature (<60 0C) heating applications, large-scale seasonal storage, and concentrating solar collectors for integrated heat and power. Market growth is expected in Canada in the near future.
(Source: Natural Resources Canada)
Opportunities
Photovoltaic
In Canada, solar projects are considered easier than wind farms to grind through the approvals process as they do not require an environmental assessment. While municipality approval is needed, solar farms are currently allowed to be placed on agricultural- or industrial-zoned land. As of 31 May 2008, there were 198 Ontario Power Authority Standard Offered Contracts issued for solar projects, totalling 470MW. Ontario offers solid feed-in tariff rates at CDN$420/MWh for solar power since 2006, through its Renewable Energy Standard Offer Program.
In April 2008, SkyPower and SunEdison Canada announced the official groundbreaking of First Light, a 19MW Ontario-based solar farm that will be one of the largest solar PV parks in North America. With an anticipated commissioning date of April-June 2009.
OptiSolar Canada is developing three Ontario-based solar projects with a combined capacity of 90MW to be operational in 2010. OptiSolar has an additional 60MW of signed Ontario Power Authority contracts, although no project announcements have been made to date for these contracts.
Pod Generating Group is developing several Ontario solar projects with a total capacity of 60MW, primarily near Sault Ste. Marie. The expected installed capital cost of the project is CDN$360 million or CDN$6 million per MW (Source: Scotia Capital: Alternative & Renewable Energy Report, pg. 245-246).
Related opportunities
Recent and emerging green power policy initiatives, such as the Ontario Standard Offer Program and similar provincial programs being discussed, are expected to help drive growth.
Solar thermal
Canadians support the active solar thermal industry and demand for its products is increasing, with incentive programs in place at the federal, provincial and municipal levels of government.
The ecoENERGY for Renewable Heat program supports the use of energy more efficiently, boost renewable energy supplies and develops cleaner energy technologies, which supports solar thermal heating. The ecoENERGY for Renewable Heat program is a four-year CDN$36 million investment. Incentives are offered to the industrial/commercial/institutional sector to install active energy-efficient solar air and/or water heating systems (Source: www.ecoaction.gc.ca/ECOENERGY-ECOENERGIE/heat-chauffage/index-eng.cfm).
One of the incentives launched by ecoENERGY in Ontario is the Solar Thermal Heating Incentive. This incentive provides a rebate to organisations in the commercial, industrial or institutional sectors, which install a qualifying solar water or solar air heating system. (Source: www.ecoaction.gc.ca/ecoenergy-ecoenergie/heat-chauffage/on-osthi-ioscst-eng.cfm). The above incentives may present opportunities for Australian companies who are export ready in the relevant sectors.
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