In the second half of the 2010, more than 60% of the Canadian energy balance came from renewable energy sources, with the share of financing Canadian hydropower projects in total energy consumption exceeding 25%. However, the financing of large investment projects in the hydropower sector faces a number of obstacles, including the search for new sites for the construction of dams, strict government regulation, environmental restrictions, and others.
Canada produces a huge amount of relatively cheap electricity due to the high share of hydropower in the country’s energy mix.
Investment and financing in Canadian hydropower projects remains an important factor in determining the success of the energy transition.
Canada is one of the countries that are betting on the development of renewable energy sources.
The country’s the activities of energy companies are constantly balancing between the free market and regulation.
Due to the very low cost of large dams, electricity prices in most Canadian cities are much lower than in the US and most EU countries.
If you need financing hydropower projects in Canada or other countries, please contact the Viola Funding Limited
We are ready to develop customized business solutions for you and help in the implementation of a large project at any stage.
Role of hydropower in Canada’s energy sector
In 1891, the Canadian Electricity Association was founded to represent the interests of the energy industry, with a total length of 27 km was built in Canada.
Construction of the first large hydroelectric power plant in Canada began in 1902 on the site of Niagara Falls. However, the boom in hydropower came in the 1960s and 1980s, with the launch of the Manic-Outardes and James Bay projects in Quebec, the Peace River project in British Columbia, the Nelson River project in Manitoba, and other giants.
At the end of the 2000s, the total installed capacity in the electricity sector was about 125 GW, and the annual generation reached 600 TWh.
In 2008, electricity generation was 601 TWh, a decrease of 6 TWh from the previous year. This was mainly due to rising commodity prices and the subsequent wave of the economic crisis. Under these conditions, the production of the hydropower sector has grown, to some extent replacing the expensive fossil fuels and helping to mitigate its consequences for business. In 2020, the country ranked third in the world in terms of production with 8.8% of total global generation (383 TWh), second only to China and Brazil.
Canada is the largest producer of hydroelectric power in North America and one of the largest in the world.
Hydroelectric power generation is a mainstay of the local economy, as a large amount of energy is exported to the US. Economists predict that the sector’s growth will create at least one million jobs over the next 20 years.
Interestingly, Canada’s hydropower plants are among the most efficient and technically advanced, converting up to 95% of the mechanical energy of water into electricity.
It is not surprising that Canadians and foreign investors are still eager to invest in the construction of hydroelectric power plants.
Investment and financing in Canadian hydropower projects: our services for businesses
Investors in Ontario were among the first to compete for the right to participate in large projects, which significantly accelerated the progress of the industry.
As we mentioned above, the power generation market in Canada is extremely diverse and the regulatory framework in each province can be very different from its neighbors. However, real freedom of investment in the hydropower sector is not provided everywhere.
The largest hydroelectric power plants in Canada are located in the provinces of British Columbia, Quebec, Ontario, Newfoundland and Labrador. These provinces remain centers of attraction for major foreign investment and financing Canadian hydropower projects.
Steps are now being taken by other provinces, but the role of state regulation is still great. Experts predict that the trend towards liberalization, along with the existing need to ramp up renewable energy, should encourage foreign investment and financing in Canadian hydropower projects in the coming decades.
Our company offers the following services for medium and large businesses:
Financing of Canadian hydropower plants projects, including long-term loans with a maturity of up to 20 years, refinancing, bank guarantees and other instruments.
Organization of project finance schemes, including the opening of SPV, development of the contractual structure of the project, preparatory work, negotiations, consultations.
Additional investment services such as financial modeling, pre-investment studies, feasibility studies, obtaining permits, etc.
If you are looking for long-term financing for the construction or modernization of hydroelectric power plants in Canada, please contact our representatives and learn more about our services.
Viola Funding Limited has brought together a team of experienced professionals in corporate finance, investment, financial engineering and other fields. We have already helped large companies finance and manage investment projects in various countries, including Spain, France, Germany, Saudi Arabia, Brazil, and others.
Website:https://viola-funding.com/