Canada's installed hydropower capacity is forecast to increase from around 77.6 GW in 2014 to an estimated 84.8 GW by 2025, according to research and consulting firm GlobalData. This will maintain hydropower as the dominant power source in the country's energy mix over the next decade.
The company's latest report* states that hydropower will provide around 49.4% of Canada's cumulative installed capacity by the end of the forecast period. Other renewable sources, including wind, solar, biomass and biogas, will contribute 34.9 GW, a 20.3% share.
Chiradeep Chatterjee, GlobalData's senior analyst covering power, says that federal and provincial policies supporting clean power will result in an increase in hydropower capacity at a higher rate than that of coal and nuclear power.
He commented: "While installed hydropower capacity is expected to increase at a modest compound annual growth rate of 0.7%, a number of large hydropower projects are currently in the construction phase and the country has the infrastructure in place to cope with more than double its current hydropower capacity."
He added that after hydropower, the foremost renewable sources over the forecast period will be wind and solar power, with installed capacities of 24.9 GW and 6.9 GW by 2025, respectively. With concern over rising carbon emissions and the possibility of outages at fossil fuel-based power plants, wind and solar capacity additions are expected to increase to meet rising demand.
"Government support could encourage the provinces of Quebec, Manitoba, Ontario, and Alberta to make large wind power capacity additions, while solar photovoltaic incentives, such as the Ontario Feed-in Tariff Program, will drive solar installations during the forecast period," Chatterjee concluded.
*Canada Power Market Outlook to 2025, Update 2015 - Market Trends, Regulations, and Competitive Landscape <http://store.globaldata.com/market-reports/power/canada-power-market-outlook-to-2025-update-2015-market-trends-regulations-and-competitive-landscape#.VcC6hfnamf4?utm_source=email&utm_medium=pr&utm_campaign=gdpwpr1508&utm_nooveride=1>