Canada
PV technology status and prospects
L. Dignard-Bailey, CANMET Energy Diversification Research Laboratory (CEDRL), Department of Natural Resources Canada 		home > annual reports > annual report 2001 >

Fig. 1 - The renovation of the Richard Blanchard building for the Ministry of Health in Victoria, British Columbia incorporated Building-Integrated PV elements to replace the opaque spandrel panels on a section of the façade. This 2,6 kW demonstration was championed by the BC Green Building Program and the BC Building Corporation. [photo Gordon Howell]

General Framework

Three specific issues on Canada's energy scene are favouring the increased use of solar photovoltaics: first, international commitments to Green House Gas emissions reductions and climate change mitigation given their far-reaching implications for energy and the environment; second, the deregulation and the restructuring of the electricity industry that is leading to an increased acceptance for distributed and on-site micro-power generation; third, the coming change in global energy markets in which photovoltaics is among the fastest growing forms of energy and the business opportunities this presents to Canadian industry.

The Government of Canada supported several new initiatives within the Climate Change Action Plan 20001. Several federal departments have collaborated with the Photovoltaic (PV) industry and regional partners to deliver projects within the Technology Early Action Measures Program, the MicroPower-Connect initiative2, and the expansion of the REDI program for On-site generation at Federal facilities. Together these projects are helping to raise the awareness of this emerging technology, as well as contributing to their improvement and cost reduction targets.

Despite the relatively low price of conventional energy, many Canadians are contributing to the growth of the PV market and industry. A sustainable market for remote and off-grid applications has developed over the last 10 years in Canada. This market continued to show strong growth with an average of 25% per year (Table 1). The installed power capacity was 7,15 MW in 2000 and is expected to exceed 8,5 MW in 2001. This is an unsubsidized market that is growing because PV technology is meeting the remote power needs of Canadian customers particularly for transport route signalling, navigational aids, remote homes, telecommunication, and remote sensing and monitoring.

Table 1: Cumulative PV power capacity installed in Canada
Year 1992 1993 1994 1995 1996 1997 1998 1999 2000
Cumulative PV power [MW] 0,96 1,24 1,51 1,86 2,56 3,38 4,47 5,83 7,15

The public perception of solar energy is very positive and in 2001 a growing number of Canadians demonstrated their environmental commitment by installing grid-connected PV on their residence, commerce or industry. A concerted effort is now required to remove market barriers and encourage the development of the grid-connected market segment in Canada. Networks between architectural firms, building engineers, electricians, and the PV industry need to be fostered. This is one of the conclusions of a new report released by CANMET-EDRL entitled "Photovoltaic for Buildings – Opportunities for Canada4". Already leading architecture and engineering firms with expertise in Green-Building design are demonstrating their interest to propose PV-building products to their clients. This has led to the installation of several new Photovoltaic building installations in Canada in 2001 (Figure 1).
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Fig. 2 - This residence is powered by a PV/Genset hybrid system in Whitehorse, Yukon, and is being monitored as part of the Canadian PV-Hybrid R&D Program at CANMET-EDRL

National Programme

The federal Department of Natural Resources (NRCan) is responsible for energy policies and energy R&D in Canada. Within the framework of the Renewable Energy Strategy, NRCan's CANMET Energy Diversification Research Laboratory (CEDRL) is responsible for the management of the federal photovoltaic R&D and technology transfer program. This includes technical support for research on components and systems in collaborations with industry and major end-users, as well as the development of standards and codes. This photovoltaic R&D program is financed by the federal fund allocation by the Program on Energy Research and Development (PERD). In addition, the Renewable Energy and Electric Division (REED) is responsible for policy support and is actively supporting PV training and marketing activities to promote the use of photovoltaic and other renewable energy technologies in Canada.

The strategies of the Canadian R&D photovoltaic program are:

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Research and Development

The Canadian R&D program supports the development of technologies, the evaluation of the performance of PV systems in new applications and their adaptation for use in cold climate conditions.

This work is conducted in collaboration with the industry at the CANMET-Energy Diversification Research Laboratory, a National research facility located near Montréal in the Province of Québec. Current projects include:

CANMET-EDRL also developed a Project Analysis Software Tool, known as RETScreen that can be downloaded from the web free-ofcharge6. First released in 1998 for on-grid applications, the RETScreen 2000 model was upgraded to cover off-grid PV applications, including stand-alone, hybrid and water pumping systems. Training modules presenting case studies were completed to provide guidance to those interested in assessing the cost and benefits of PV systems in various applications in 2001.
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Demonstration projects

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Fig. 3 - An interactive exhibit was installed at the Saskatchewan Science Centre to demonstrate that Photovoltaic panels can provide clean electricity to homes in Canada. (Demonstration by Rob Dumont of Sask. Research Council during the Solar Energy Society of Canada annual conference. (photo Gordon Howell)

Implementation

Canada is developing a National Implementation Strategy in order to reduce its greenhouse gas emission by 6% from 1990 level. In 2000, the federal government committed an additional $500 million to accelerate progress towards the reduction of Greenhouse gas emissions. There has also been a commitment to provide investments in technologies that will have impacts in the post 2010 period.

Within this framework, several climate change measures have been initiated that should benefit the PV industry and other stakeholders:

The restructuring of the electricity market in North America is drawing more interest in providing customers a power choice. Much of the regulation for electricity in Canada is under provincial jurisdiction. Alberta was the first Province to deregulate the electricity industry and electricity is traded on the Alberta Power Pool since January 1996. In May 2002, the Province of Ontario will also deregulate their electricity industry sector. Ontario Power Generation has created the Evergreen Energy division to offer Green power to their customers. In 2001, Evergreen Energy installed a 4,8 kW PV power system on their rooftop, as part of their renewable energy portfolio. Several major utility companies, such as Enmax in Alberta, now offer green power (mainly wind power) for a premium to their customer base. There is no provincial legislation mandating net-metering options be provided to customers in Canada. Small systems installed by residential customers can, in principal, be approved on a case-by-case basis for interconnection; however, the process is still costly and lengthy. SaskPower is the only provincial electricity company that has an incentive program that targets farmers who wish to purchase small PV or wind powered water-pumping systems.
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Industry Status

The Canadian PV industry has grown steadily serving both its domestic off-grid market and the export market. There are approximately 150 organizations actively promoting PV power. These are mostly system suppliers and installers but approximately 15 companies are involved in manufacturing. Many of them are members of the Canadian Solar Industries Association or Énergie Solaire Québec11. Automated Tooling Systems (ATS), based in Cambridge Ontario is a North American leader in automated manufacturing and test systems, and a large volume producer of precision components. It has developed automated manufacturing equipment for manufacture of solar cells and modules. In 1997 it acquired its subsidiary, Photowatt International S.A, that has grown into one of the world's largest solar module manufacturers. In 2001, its PV division continued its research and development effort for a next-generation, flexible and lightweight technology, known as Spheral SolarTM. It also expanded its PV rural electrification activities in Western China.

Xantrex Technology Inc. based in Vancouver, British Columbia, Canada has acquired and formed an alliance with Statpower, Heart interface, Cruising Equipment and Trace to create the world’s leading supplier of advanced power electronics. The company is positioned to serve a growing photovoltaic market worldwide, and has products ranging from DC/AC inverters, battery chargers, and grid-interactive power conditioners that targets mobile, recreational, industrial and distributed power applications.

ICP Global Technologies, a leading supplier of consumer products in North America, has expanded its operations to manufacture a new line of PV panels. Its new manufacturing facility in Montréal, Québec was inaugurated in October 2000. ICP Global won a design and engineering award for its iSun Power Charger at the Consumer Electronics Show. A network of systems integration companies has established distribution and dealer networks, that effectively serves a growing Canadian PV market. These include distributors for Siemens Solar, BP Solar (Solarex), Kyocera, Photowatt and UniSolar. These module manufacturers offer PV module product warranties ranging from 10 to 25 years and have certified their products to international standards.
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Market Development

The Canadian PV installed capacity is now 7,15 Megawatt with a sustained domestic market growth that has averaged 25% over the last eight years. In 2000, the annual PV module market stabilized at around 1,3 Megawatt per year. There was a surge in commercial and industrial applications in 2000 with 70% (928 kW) of the sales going to this off-grid application sector. Most of the remaining PV power sales were for off-grid residences and other recreational applications (382 kW). It is estimated that the Canadian PV industry generated revenues of 42 million CAD and employed approximately 260 people in 2000.

There are still many barriers to the development of the grid-connected market sector in Canada. In particular, residential customers find the installation and approval process costly and lengthy. Commercial and industrial customers generally have dedicated staff and expertise to deal with the various steps and are more likely to pursue projects. It is estimated that there were approximately 10 grid-connected installations in Canada in 2001 representing a total power capacity of around 60kW - this is a significant increase compared to the 18 kW reported in 2000.
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Future Outlook

PV power systems have demonstrated that they are a reliable source of electricity and the public perception of this technology is favourable. Nevertheless, increased knowledge of this energy choice is required to maintain the growth of its domestic market. NRCan continues to support several promotional and marketing activities in collaboration with the Canadian Solar Industries Association and Énergie Solaire Québec. It has initiated a collaboration with Parks Canada to increase the impact of its outreach activities that will contribute to promoting clean energy sources and educate the general population.

A concerted effort is now required to encourage the development of the grid-connected market sector in Canada. CANMET-EDRL recently completed a study examining the benefits of on-site generation using photovoltaic technologies on buildings in Canada.

Several new activities have been initiated as part of an action plan that aims to build on Canadian Industry experience base and address some of the market place barriers that currently exist. New government investments in R&D for Building-Integrated PV technology, support for the development of a technical guideline for the interconnection of small power supplies, and support for demonstrations of PV on building in high-visibility sites throughout Canada will contribute to facilitating the market introduction of PV technology for grid-tied applications in the medium to long term.
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Footnotes with relevant web sites

  1. Climate change web site: www.climatechange.gc.ca
  2. Removing barriers to interconnection: www.micropower-connect.org
  3. Renewable Energy and Electricity Division: http://nrcan.gc.ca/es/reed. CANMET-EDRL conducts an annual market survey to follow the progress of the PV market in Canada and collaborates with the International Energy Agency to produce an annual survey report
  4. Photovoltaic for Building report: http://cedrl.mets.nrcan.gc.ca/
  5. PV-Hybrid Program newsletter: http//cedrl.mets.nrcan.gc.ca/
  6. Free software tool: http://www.retscreen.gc.ca
  7. OPG green power: http://www.opg.com/envcomm/E_greenPower.asp
  8. REDI ON-SITE initiative: http://nrcan.gc.ca/es/erb/reed
  9. Funding University research: http://nserc.ca/guide/ghgm_e.htm
  10. Green Municipal Fund: www.fcm.ca
  11. Directory of members and companies available from: the Canadian Solar Industry Association www.cansia.ca; and Énergie Solaire Québec www.esq.qc.ca
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Further reading about Canada

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