Canada set to add 7.7 GW of wind, cut coal by 5 GW by 2028: Wood Mackenzie
February 3, 2020
Houston — Canada is likely to add 7.7 GW of wind capacity and retire 5 GW of coal-fired capacity by 2028, mainly in the western provinces of Alberta and Saskatchewan, according to consultancy firm Wood Mackenzie.
Industry observers think the analysis “makes sense” but could change with provincial elections or “hiccups” in nuclear refurbishments in eastern provinces.
“We are very enthusiastic about opportunities for wind energy development in Canada, and in Alberta and Saskatchewan in particular,” said Evan Wilson, Canadian Wind Energy Association regional director for Prairies. Wilson added:
“In Alberta, the combination of the energy-only market, TIER regulation and falling wind energy prices are expected to open many opportunities for development.”
TIER is the Technology Innovation and Emissions Reduction program, which requires large industrial emitters to reduce greenhouse gas emissions to a benchmark level, pay into a technology fund or buy offsets or credits. This replaces the Alberta Electric System Operator’s Renewable Electricity Program, which resulted in contracts for 1,500 MW of wind generation.
“A number of recent announcements have reflected opportunities for both corporate offtake agreements, and the use of wind energy to reduce compliance obligations under TIER,” Wilson said Monday, adding:
“In Saskatchewan, we expect that wind energy will continue to be a cornerstone of Saskatchewan’s regulated requirement to reduce emissions by 40%. We are eager to see the results of the current procurement process, which will award a contract to 300 MW of wind capacity.”