Canadian cleantech companies poised for global growth, but access to capital still a challenge
TORONTO, June 26, 2012 /CNW/ - An estimated US$21.7 billion worth of global renewable energy transactions were completed in Q1 2012, representing a 41% increase over Q4 2011, according to Ernst & Young's latest quarterly global Renewable energy country attractiveness indices report.
"Growth is top of mind for leading cleantech companies who are meeting the challenge of transitioning to a low-carbon and resource-efficient economy with proactive energy strategies involving the C-suite level," says Stephen Lewis, leader of Ernst & Young's Renewable Energy Advisory practice in Canada.
Those corporate energy strategies include improving energy efficiency to mitigate energy cost hikes, increasing the use of renewable energy and growing energy self-generation.
"From startups to large corporations and national governments, we're seeing more and more organizations worldwide embrace cleantech as a means of growth, efficiency and competitive advantage," says Lewis. "But only those with a comprehensive and diverse energy strategy will be able to take advantage of today's resource-constrained world."
Lewis adds that as resource constraints continue to challenge the global economy, the cleantech industry has the unique opportunity to transform markets dramatically in the next five years. Forecasts already predict robust growth across the Canadian renewable energy industry between now and 2015.
That said, while opportunities abound, there are also many risks within each province that could hamper growth and impact the success of Canada's renewable energy sector, including:
- British Columbia: Political risk surrounding rate sensitivity and future calls for projects
- Alberta: Access to transmission and challenges in securing long-term power purchase agreements
- Ontario: Access to transmission and the enactment of new feed-in tariff rules
- Quebec: Ability for the Quebec government to continue stimulating its wind market
- Nova Scotia: Access to transmission
"Energy is an essential commodity of modern life, and more and more stakeholders around the globe are realizing the importance of finding sustainable solutions to our future energy needs," says Lewis. "A nationally integrated energy system can provide immunity to market price volatility and safety from security threats, while allowing Canada to export its energy raw materials rather than consume them domestically."
About the report
Ernst & Young's Renewable energy country attractiveness indices has been running since the beginning of 2003 and is distributed to over 4,000 people each quarter. It provides scores for national renewable energy markets, renewable energy infrastructures and their suitability for individual technologies.
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