Canada invests US$363 million in SREPs programme to aid grid resilience and clean power installations

Facebook
Twitter
LinkedIn
Reddit
Email
RWE's Canadian Hull solar plant in Canada.
The announcement follows the tightening of permitting rules for clean power projects in Alberta and Ontario. Image: RWE.

The Canadian government has announced up to C$500 million (US$363.2 million) in finance for the country’s Smart Renewables and Electrification Pathways (SREPs) programme, as the state looks to encourage investment into renewable power technologies.

The money will go towards the SREPs’ Utility Support Scheme, and be used to support projects submitted by utilities, system operators and industry organisations looking to modernise their operations, expand grid infrastructure or install more renewable power capacity.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The government also noted that intake processes for “other types of projects” will be launched in the coming months, suggesting that other actors in the Canadian energy sector could benefit from government funding for renewable power projects.

Grids remain the priority

The emphasis on improving grid resilience is perhaps expected, considering the challenges faced by the Canadian grid. According to a report, ‘Powering Canada: A blueprint for success’, published by government body Natural Resources Canada, as of May 2024, 280 communities in remote parts of the country had not been connected to larger electricity grids, and had to rely on local diesel-powered electricity generation to meet energy needs.

The government has committed to decarbonise its electricity grids by 2035, and sustained investment may be required to limit grids’ carbon emissions, and expand their scope to include more local communities.

However, this emphasis on grid resilience comes at a time where a number of Canadian provinces have introduced more barriers to the deployment of new solar capacity within their borders, with Alberta premier Danielle Smith promising an “agriculture-first approach” to land use in her province. Alberta tightened permitting rules for renewable energy projects in March, while Ontario banned the deployment of solar projects, in particular, on prime agricultural land in August.

Indeed, solar has historically been sidelined in the Canadian energy mix, with the ‘2024-45 Energy Fact Book’, produced by the Canadian Centre for Energy Information, noting that solar accounted for just 0.9% of the country’s electricity generation in 2022. This is lower than wind, which accounted for 5.7%, and even petroleum, which accounted for 1%, so while there could be potential for additional grid investments in Canada, historical precedent, combined with recent legislation, would suggest that there may not be significant investments in the solar space.

Raising capital

The announcement follows a C$2.9 billion (US$2.1 billion) investment into the SREPs scheme in 2023, alongside more than C$1 billion (US$730 million) of investment in the 2021 and 2022 federal budgets, and the latest round of financing demonstrates a sustained commitment to investment in the Canadian energy sector.

This scale of federal funding reflects investments made at the provincial level, where Quebec has announced a 12-year, C$170 billion (US$123.5 billion) plan to dramatically upgrade its energy mix. The province is targeting the construction of more than 5,000km of new transmission and distribution infrastructure, alongside a massive 10GW of new wind capacity and 1.5GW of “other renewables” and storage.

“This next step will allow us to support even more projects as we work with provinces, territories, Indigenous governments and non-governmental partners as we work toward our common goal of an energy-efficient and money-saving clean grid,” said Jonathan Wilkinson, Canada’s minister of energy and natural resources. “I look forward to seeing the results of this new funding as it improves energy infrastructure from coast to coast to coast.”

13 November 2024
4pm GMT / 8am PST
This webinar by PVcase will provide an understanding of data risk for renewable energy projects and the challenges it poses, providing you with practical strategies and best practices to ensure data accuracy and reliability throughout your entire project. You'll explore innovative solutions offered by PVcase, including end-to-end automation, high-fidelity data analysis, and seamless data transfer, which can transform solar project development. By staying informed about the latest challenges and leveraging cutting-edge technology, you'll maximise project success, protect financial investments, and contribute to the broader goal of accelerating the clean energy transition. Don’t miss this opportunity to enhance the success and reliability of your solar developments.
26 November 2024
Warsaw, Poland
Large Scale Solar Central and Eastern Europe continues to be the place to leverage a network that has been made over more than 10 years, to build critical partnerships to develop solar projects throughout the region.

Read Next

November 8, 2024
US solar tracker manufacturer Array Technologies has posted US$231 million in revenues and adjusted EBITDA of US$46.7 million in its Q3 2024 financial results.
Premium
November 8, 2024
'This revolution came not from the large-scale PV, but started from the really small scale, up to 1MW installations,' says Roman Karbowy.
November 8, 2024
Danish renewable energy investment firm Copenhagen Infrastructure Partners (CIP) has launched a new Australian subsidiary, with eyes to deliver 6GW of new solar PV and wind energy in the next 10-years.
November 7, 2024
The Indian states of Rajasthan and Gujarat need a “concerted effort” to maintain their central roles in the country’s energy transition, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
November 7, 2024
Freyr Battery has agreed to acquire a 5GW module manufacturing facility in the US state of Texas from Trina Solar.
November 6, 2024
R.Power has issued green bonds worth (€122 million (US$130.6 million) to support the development of new solar and storage projects in Poland.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
November 12, 2024
San Diego, USA
Solar Media Events, Upcoming Webinars
November 13, 2024
4pm GMT / 8am PST
Solar Media Events
November 19, 2024
Philadelphia, USA
Solar Media Events
November 20, 2024
Zhuhai, China
Solar Media Events
November 21, 2024
London, UK