Canada Thermal energy Industry

Canada Thermal Power Market Analysis

The Canada Thermal Power Market is expected to register a CAGR of greater than 1% during the forecast period.

• Long-term, more people and more electricity use would lead to more electricity being needed.With growing power demand, new thermal power projects such as nuclear are being planned and constructed, which, in turn, would drive the market significantly.
• On the other hand, phasing out coal-based thermal plants and rising competition from renewables are a few restraints to market growth.
• Still, Canada's large natural gas reserves are a chance for the country to become less reliant on foreign energy sources and could help the thermal power market grow.

Canada Thermal Power Market Trends

Natural Gas Based Thermal Power to Witness Significant Growth

• Natural gas combined-cycle plants are the most efficient among natural gas-fired power plants. They cost slightly less than gas turbine cycle plants in construction costs but can provide more energy by utilizing the heat released during the process.
• Thermal power generation made up a big part of Canada's power, and coal, gas, and nuclear power were the main sources.In 2021, natural gas generated more than 75.9 TWh of electricity, and its share is expected to grow further during the forecast period.
• Units 4 and 5 at Genesee Generating Station are being updated. They will use high-efficiency gas turbine technology and be able to make up to 1,060 megawatts of electricity.The project is expected to be completed by 2023 at a cost of USD 1.4 billion.
• In March 2022, the mining company Argonaut Gold Inc. announced that it had received a 22 MW engine power plant from Wärtsilä. The Magino Gold Mine in the province of Ontario will benefit from the power plant in Canada. It includes four gas engines, the Wärtsilä 34SG, electrical equipment, auxiliaries, and plant commissioning. The power plant will begin operation in 2023.
• With advantages like low emissions in comparison to coal and fewer harms in comparison to nuclear power, the market share of natural gas in power generation is likely to grow in the future at the highest rate.

Increasing Demand for Nuclear Generation to Drive the Market Growth

• Since power plants are getting older, more refurbishment projects are being done to make nuclear fleets last longer. This, in turn, is expected to drive the market's growth during the forecast period. Ontario's Darlington and Bruce atomic units are being refurbished, allowing the nuclear plants to operate well beyond the mid-century. The Darlington refurbishment project is expected to be completed by 2026 and the Bruce project by 2033.
• Canada has a lot of resources, a lot of experience, and a lot of knowledge, and it does a lot of research and development on nuclear energy so that it can be used to get rid of carbon from the energy system.New Brunswick and Ontario use atomic energy to generate low-emission electricity for their consumers. The country has a sound environment for nuclear energy development, which positions the thermal power market further than other low-carbon emitting technologies.
• In December 2019, the provinces of New Brunswick and Saskatchewan agreed to work with Ontario to speed up the development and deployment of SMRs to deal with climate change, energy demand in the region, economic growth, and research and innovation opportunities. As per the BP Statistical Review, the nuclear energy consumption in 2021 was projected to be 0.83 exajoules, a decrease of 5% from the previous year. Also, electricity production from nuclear energy production was 14.45% in 2021, making it the second most preferred energy resource after hydro.
• In 2022, NextGen Energy Limited, which was mostly focused on its largest uranium project in the development stage, Rook 1, planned to start making a lot more uranium on a large scale.With the development of Rook 1, 30 million pounds per year (Mlbpa) of uranium could be made.The total initial capital cost for Rook I is USD 1.3 billion.
• With programs to fix up old reactors and a big share of the power generation market, nuclear energy is expected to remain the most important source of energy during the forecast period.

Canada Thermal Power Industry Overview

The Canadian thermal power market is moderately consolidated. Some of the major companies in the market (in no particular order) include SaskPower International Inc., Emera Inc., TransAlta Corporation, Ontario Power Generation Inc., and Northland Power Inc., among others.

Canada Thermal Power Market Leaders

Canada Thermal Power Market News

• January 2023: X-energy Canada and Invest Alberta signed a memorandum of understanding to find ways for the Xe-small modular reactor ("SMR") to be used in Canada without hurting the economy.Xe-100 is a high-temperature gas-cooled reactor. This clean energy solution would support heavy industries, including oil sand operations, petrochemicals, and other industrial processes.
• October 2022: The Canada Infrastructure Bank (CIB) announced its agreement with Ontario Power Generation (OPG) and committed USD 721 million to the development & construction of Canada's first small modular reactor (SMR). The capacity of SMR is 300 MW, and this project would also cater to Canada's efforts to become a global SMR technology hub in a market estimated to be USD 150 billion per year by 2040.