Canada positioned for $200B clean energy boom, but faster approvals needed: report

Canada is well positioned to capture up to $200 billion in clean energy investments over the next decade, but how much of that opportunity gets captured will depend on system and market factors, the Canadian Renewable Energy Association (CanREA) says in a new report.

The report, titled Watts at Stake: Canada’s $200 Billion Clean Energy Investment Opportunity, sees Canada as a top-tier destination for renewable energy investments due to its resource base, stable policy environment and growing electricity demand.

Over the next 10 years, CanREA forecasts demand for electricity in Canada to rise, driven by industrial electrification, data centre growth, population increases, and the expansion of energy-intensive sectors such as mining and manufacturing.

It estimates that between 54 and 88 gigawatts (GW) of new wind, solar and energy storage capacity will be required, more than triple its current levels. That would require as much as $200 billion in investment, or about $20 billion annually.

Canada — with approximately 25 GW operating across the country and roughly the same volume in development or moving through procurement — has fundamentals to compete for that capital, the association says.

However, it added that the government must demonstrate that those projects can move through approvals on “reasonably predictable timelines”, highlighting that some timelines have already been lengthening, raising carrying costs and prompting investors to reassess whether the schedule risk justifies their commitments.

Permits

What is slowing the system is not a shortage of capital or technology, but the time it takes to move a project through approvals, permitting and interconnection queues and into construction,” the authors wrote.

“That trend has become more consequential as electricity demand accelerates, narrowing the margin between when new supply is needed and when the system can realistically deliver it.”

They also brought up China as a prime example of how successful outcomes can be achieved when delivery systems, supply chains and grid expansion are coordinated rather than sequential.

In 2025, the Asian nation added more than 430 GW of new renewable capacity, accounting for more than half of global additions, backed by annual clean energy investment exceeding $600 billion and a parallel build-out of transmission and storage infrastructure, the report finds. In comparison, Canada added just 1.5 GW, a tiny fraction compared to China.

Government role

CanREA sees Canada in a competitive position to secure capital based on the reliability of returns and the quality of the institutional and regulatory environment. However, seizing that opportunity will require full action across all levels of government, it said.

“Canada needs more wind, solar and energy storage to power our future, and the fundamentals to attract investment are already in place,” said Vittoria Bellissimo, CanREA president and CEO.

“These technologies are among the most affordable, fastest to deploy and scalable ways to build new electricity supply, and they are essential to growing Canada’s economy.” 

Read the full report here.