Renewables rebound

TECH

Grid Shift: Renewables set to double by 2035

After a bleak 2024, Canada’s renewable energy industry is ready for a major rebound.

What happened: A new market outlook from the Canadian Renewable Energy Association (CanREA) is forecasting $143 - $205 billion worth of new investment in wind, solar, and storage by 2035, driven by surging demand for electricity.

The details: Today, Canada has about 17 GW of wind, 2.3 GW of utility-scale solar, and just 1 GW of battery energy storage capacity installed, with over 18 GW of new projects in the pipeline.

By 2035, CanREA is projecting more than 30 GW of new wind, 17 GW of solar, and 12 GW of storage.

The context: Renewable energy deployments slowed in 2024 after Alberta implemented a moratorium on new projects. The province had been Canada’s renewables leader thanks to its open energy market and corporate power purchase agreements (PPAs). But the leftover uncertainty and upcoming changes to its energy market are stalling new investments.

Other regions are starting to step up: B.C. issued calls for 9,000 GWh of clean energy; Ontario aims to secure 5,000 MW, half of which is storage; and Nova Scotia is working on building out a new offshore wind industry.

Renewables are taking off around the world, too. The IEA expects capacity to grow by 2.7x by 2030.

The drivers:

• Rapid cost and efficiency improvements from tech development and mass manufacturing

• Cost reductions in batteries from EV growth

• Federal clean investment tax credits

• Corporate PPAs

• Provincial procurements to meet long-term electricity demand

Why it matters: Wind and solar are Canada’s cheapest, fastest-to-deploy options to meet surging demand and decarbonizing electricity. Renewables could go from 10% of Canada’s supply today to 21% by 2035, making up 70% of all new capacity.

Expanding renewables could anchor industrial growth and energy security with abundant electricity while cutting grid emissions 5x by 2035.

What we’re watching:

• Energy markets. Alberta can become a leader again, but needs to create more certainty for investors and favourable market conditions. Ontario and others can start tapping into corporate PPAs.

• Policy certainty. Clean ITCs drove significant growth, but expire in 2035. Canada’s Clean Electricity Regulations could encourage more investment too - if they survive.

• Offshore wind. The Trump admin is determined to wipe out offshore wind in the U.S. Canada has an opportunity to bring project developers north.

• Storage deployment. With just 1 GW of battery storage online, Canada needs to ramp up storage of all types to integrate renewables with variable output.

• Distributed energy resources (DERs). The time could be right for DERs to take off, and utilities will need more tools to execute effective demand response and tap into virtual power plants.

The bottom line: Canada’s wind, solar, and storage markets are poised for a growth cycle that could double or triple clean capacity by 2035. A transformed electricity system creates new opportunities across the grid - but only if governments deliver stable regulatory environments, grid infrastructure, and the right incentives to scale.

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CLIMATE CAPITAL

⚡️ Hydrostor (Toronto, ON) landed US$55 million in financing from Export Development Canada to develop its advanced compressed air energy storage (A-CAES) projects in Australia.

🛰️ GHGSat (Montreal, QC) raised $47 million to expand its satellite-based emissions monitoring platform globally.

☀️ SolarSteam (Calgary, AB) closed a $8M Seed II round for its solar industrial heat system, led by Levelized Capital. SolarSteam uses curved mirrors to concentrate solar energy for use in industrial, agriculture and district heating.

💨 Deep Sky (Montreal, QC) secured $11 million in financing from Finalta Capital to support its Alpha carbon removal test site in Alberta.

⚡️ Northern Transformer (Maple, ON) received $6 million from the Government of Canada to expand domestic transformer production, a key bottleneck in grid expansion.

🌱 Knead Technologies (Calgary, AB) landed a $248,000 grant from the Canadian Food Innovation Network to optimize food rescue matching. Freshr also received $232K to pilot its sustainable film packaging.

🍄 Maia Farms (Vancouver, BC) received $1.75 million from Genome BC to scale up production of its mycelium proteins.

🔋 Quebec pension fund La Caisse will acquire Australian renewable energy and battery developer Edify Energy.

IN THE FIELD

💨 Atalanta Climate launched Ovi, a distributed carbon capture device that purifies air while removing carbon.

🔋 Ballard Power Systems introduced its new transit fuel cell module with a 25% increase in energy density.

🔌 SWTCH Energy and FLO signed a roaming agreement that allows EV drivers to charge across both networks without switching apps or payment accounts.

🔌 Relion will deploy its Operations & Maintenance platform with NYC-based charging operator Revel.

🚗 Exro Technologies will close its U.S. operations due to ongoing financial struggles, and could be delisted from the TSX.

🔋 Aqua-Cell Energy will pilot its saltwater flow battery in Medicine Hat, Alberta, starting in early 2026, as part of the city’s grid resilience innovation challenge.

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NEWS

📡 Signals & Currents

Alberta will allow big emitters to claim investments in emissions-reductions technology under its industrial carbon pricing system.

Previously, companies needed to reduce emissions, buy offset credits, or make payments to a provincial fund.

Without clear limits, allowing investments in technology opens the door to double counting - claiming emissions reductions from the technology but then also generating credits that can be sold from that same reduction.

Falling behind - Canada is on track to reduce emissions just 20-25% below 2005 levels, a far cry from our 40-45% goal. Most sectors barely improved, while oil & gas grew 3.4%. Meanwhile, Canada is one of a few fossil-fuel producers that could push global climate goals out of reach. [440 Megatonnes]

No more loans - The Greener Homes Loan Program will end next month after the feds failed to extend funding, removing a key pillar in government’s green building agenda. [Energy Mix]

Climate delay - Companies aren’t following through on climate plans, according to a new study, that found companies are deferring action into the future. At the same time, firms are underestimating their climate risk. [Bloomberg]

Road to the Ring of Fire - Ontario will invest $62M to upgrade roads in Northern Ontario as part of its plan to build out the mineral-rich Ring of Fire. [The Narwhal]

Missing out - Easing restrictions on European EVs could unlock cheaper vehicles and meet Canada’s EV sales targets without walking back tariffs on Chinese cars. [Clean Energy Canada]

Financing the value chain - Climate investment firm Galvanize launched a $1.3B investment program to offer flexible financing tailored to energy transition companies with a focus on the U.S., Canada, and Europe. [ESG Today]

China out ahead - China’s dominance in clean tech manufacturing could make some sectors “uninvestable”. [Bloomberg]

Back on the menu - France’s Nxtfood raised €49M, Europe’s largest raise for plant-based meat in 2025, driven by strong sales and government support. [Green Queen]

COMMUNITY

🗓️ Can AI Solve More Than It Consumes?: A panel discussion on what rapid AI adoption means for the climate, our resources, and our communities. Toronto Climate Week, October 2nd. See the full TOCW calendar of events here.

➡️ Discover more climate events.

🧑🏻‍💻 Peak Power is hiring a Chief of Staff to accelerate cleaner, more reliable, and more affordable electricity for everyone.

➡️ Find more open roles.