Renewable Energy in Canada: A Path towards Lower Affordable Energy Cost

Canada's renewable energy industry is poised to increase energy availability, fight unemployment, and strengthen diplomatic relations with other nations.

FREMONT, CA: Presently, renewable energy accounts for around 18.9 percent of Canada's energy supply and more than 50 percent of its electricity production. Natural gas and petroleum comprise the majority of nonrenewable energy sources, at 35.7 percent and 38.7 percent, respectively, but commercial and public groups attempt to narrow the gap. Canada derives most of its renewable energy from hydropower plants developed on its vast river system. According to the Canadian government, Quebec generates the most renewable energy of any province: 40,000 MW of hydropower alone.

Renewable energy is the least expensive energy source accessible. It is less expensive to construct infrastructure and generate energy from renewable sources than from nonrenewable sources. This holds true even in the shortage of government subsidies that enterprises in the nonrenewable energy industry normally receive.

In recent years, Canada has promised to subsidize renewables after signing the Paris Agreement, which established a target for nations to become carbon neutral in the future.

Canada's most deprived provinces and territories currently have the highest energy costs. In 2021, Nunavut will have the second-most expensive power, at $0.37.5 per kilowatt. There are no official poverty reports for Nunavut; however, the Canadian government determined that its population lives in some of the lowest conditions and that 37 percent of homes there struggled with food insecurity.

Most of Nunavut consists of scattered, isolated, and sparsely populated towns. This, coupled with a tough topography, makes constructing a centralized energy infrastructure challenging. As a result, most Nunavut residents rely on expensive diesel generators and fuel oil to power and heat their homes.

In Nunavut, renewable energy has demonstrated some potential. Hydropower provides one-third of the territory's available energy. Hydropower costs approximately $0.80 per kilowatt, nearly five times less than the typical energy bill.

Due to the lack of regional or territorial infrastructure, Nunavut residents cannot take advantage of cheaper renewable energy sources. Indigenous groups continue to work to bring renewable energy to their communities and to make electricity more accessible.

Recently, the Canadian government granted $1.6 million in subsidies for indigenous-led projects to construct solar panels, geothermal heating technology, and energy storage infrastructures in isolated Nunavut communities.

Economic Benefits of Renewable Energy Expansion in Canada

Focusing on renewable energy in Canada also creates new international trade growth and expansion prospects for Canadian enterprises.

New companies are continually forming in the Canadian renewable energy market due to past success and government funding of $200 million. One such company is NRStor Inc. of Ontario, which manufactures energy storage systems for renewables. The firm has collaborated with the Six Nations of the Grand River on the Oneida Energy Storage Project. The project has the potential to save Canadians $760 million and will be the country's largest battery energy storage plant.

Indigenous Canadians are more likely to live in poverty than other communities in Canada, according to the government. According to Six Nations Future, this project will generate internship, training, and career opportunities for Canada's indigenous community.

The overseas export of renewable energy is a significant source of profit for many of these businesses. In 2014, renewable energy firms made $13 billion. Clean fuels such as ethanol and biodiesel are currently the most profitable goods. However, the hundreds of Canadian renewable energy market enterprises are diverse. As these firms succeed, they generate additional employment opportunities for the poor.

Political Benefits of Renewable Energy Expansion in Canada

The rising renewable energy sector boosts Canada's international relationships with other nations through importing and exporting resources and technologies required to construct renewable energy plants.

In light of tensions stemming from the situation in Ukraine, the Canadian government recently revealed its intention to export hydrogen to Germany to replace Russian oil. The administration intends to reduce Russia's sway over Western Europe and encourage the world community to increase its use of renewable energy.

The United States views Canada as a significant export possibility for its machining industry, as renewable energy plants require a variety of machines to function. Trade in the renewable energy sector between the United States and Canada has already resulted in a memorandum of understanding that eliminated tariffs on solar technology, laying the framework for future trade treaties and partnerships.

Ultimately, renewable energy in Canada could play a crucial role in the country's ongoing struggle against poverty, giving a fresh path to safety, opportunity, and security for the most vulnerable inhabitants.

Now, the developing renewable energy business has the potential to make electricity more accessible, combat unemployment, and boost Canada's diplomatic ties with other nations.