Up for renewal: Canada’s renewables sector enters its ‘coming of age’ moment

“For the longest time, we had built this stuff, but never actually gotten to the end-of-life of a facility. Now, we are approaching that milestone,” he said. “What we’re finding is a lot of these facilities can continue to run past their expected timeframe, but now, you have the staff who have been maintaining and operating these facilities talking to their developer arm again: ‘Do we want to repower this thing with new machines, or do we want to just take it down and call it quits?’”

The response to that question, McKay noted, depends primarily on financial realities instead of the physical condition of the renewable setups themselves. Extending operations by five years could involve continuing with the current equipment to extract remaining usefulness from the older components. Securing a new 20-year agreement would enable complete modernization while also allowing the incorporation of numerous technological improvements developed since the original builds.

Over the years since those early renewable projects, the performance of wind and solar equipment has advanced considerably. These developments have far surpassed what earlier models could achieve, creating chances for much greater output within a similar physical space.

This choice may hold particular relevance for solar installations, as McKay observed that improvements in solar technology could support commercial viability for modernization around the 15-year point.

“It’s not about the racking or piling that’s breaking down or rusting out or anything – that stuff’s got lots of life left in it. It’s just [the capabilities of] the power generation gear itself,” he said.

The framework of monetary supports has shifted as well, according to McKay, moving away from earlier direct rebates and cash grant approaches toward one focused on investment tax credits (ITCs).

Ottawa’s existing array of clean economy ITCs, such as the Clean Technology Manufacturing ITC and the proposed Clean Electricity ITC covering generation and storage components, seek to lower the capital demands of these projects, which require substantial upfront investment, and to enhance long-term operational finances for the assets.

This approach extends beyond utility-scale projects, as smaller commercial, industrial, and residential renewable setups are also adopting extended cost-saving strategies that align with net metering arrangements and longer-term financing.

“It’s less about rebates and those kinds of cash incentives, and more about investment tax credits; giving that tax break upfront for projects that are capital intensive,” said McKay. “What’s not always getting the national headlines is all the behind-the-meter stuff: big box stores, distribution centres, commercial and industrial folks who are just trying to offset or hedge their power prices. They’re building solar; they’re putting batteries behind the meter.”

As firms seeking to participate in this renewable expansion evaluate priorities among wind, solar, and battery storage, they encounter unique demands related to construction, upkeep, and day-to-day functioning for each category.

This situation is further complicated by the varying levels of development across these subsectors and the distinct requirements associated with each.

The approaching end of contracts that defines this maturing phase for renewables served as the focus of CanREA’s 2026 Operators Summit, which took place in Toronto from February 11 to 12. The event’s opening discussion examined the significance of this period by assessing the status of the three main renewable areas at this turning point.

Given that wind energy contract expirations are the most immediate, challenges in the supply chain have come under close scrutiny. JJ Davis, vice president of operations and asset management at Kruger Energy, provided a direct evaluation of the sector’s preparedness during the panel:

“The supply chains are from Europe, or parts are made in Asia or Europe – nothing’s made in Canada,” he said. “If you need to replace a motor in the automotive industry, you go to a shop down the street and buy a brand-new motor. In the wind industry, you need to identify a specialized service and find a shop that will deal that way. You can’t go buy a blade for a wind farm that was built five years ago, let alone 17 years ago.”

Solar presents distinctly different traits. Lacking moving parts, facing fewer regulatory hurdles across jurisdictions, and operating in a highly competitive international supply environment, solar’s main issues center on electrical aspects relative to wind. These involve voltage setups, inverter details, compliance with rapid shutdown rules, and confirming that updated panels mesh properly with current infrastructure.

“The biggest considerations are voltages and configurations, and making sure you look at your site very closely so that a bigger panel actually works. But it’s all within the fence, typically, and it’s a lot more in-control with better options if you need to look to repower,” said Davis.

Battery energy storage systems (BESSs) represent the most recent addition to the sector, experiencing quick expansion in part because of their growing importance for maintaining grid reliability. Barbara Ellard, director of markets and procurement at the Independent Electricity System Operator (IESO), indicated that her group has placed strong emphasis on storage in recent acquisitions, anticipating roughly three GW to enter operation in Ontario.

“Storage is the new kid on the block for us,” she said. “We are looking for storage to really be that flexible tool; a great dance partner to some of the intermittent resources. A great partner to make sure that during those peak hours, we have that additional boost of energy that was surplus or more available during the off-peak hours.”

The range of possible modernizations, fresh constructions, storage additions, and behind-the-meter commercial efforts adds up to a large and ongoing stream of activity not only for Canada’s electrical contractors but also for trades more broadly throughout the country.

Employment in renewable electricity expanded from about 4,700 workers in 2012 to 23,000 by 2024, per Electricity Human Resources Canada (EHRC)’s 2025 Winds of Change report, while Canada’s green economy is projected to generate as many as 400,000 additional positions by the close of the decade.

Will this increase in the renewable workforce suffice to support the scale of opportunities ahead? Both post-secondary institutions and the federal government are investing significant resources to ensure the answer is affirmative.

Among these efforts is Ottawa’s Sustainable Jobs Training Fund, introduced in early 2025, which has allocated $75 million toward developing skills for low-carbon work, with the target of preparing 10,000 individuals for sustainable trades that include renewable energy across a three-year timeframe.

“It’s going to be a lot about the people, about the contractors, and supports available. If we hit a point where we don’t have the expertise to upgrade, or enough people to address what we’re talking about – gigawatts and gigawatts across the country – then I could see the industry looking for other options, whether bringing in people from outside or shutting down a facility because the cost of labour is too high,” McKay said. “But it’s also going to be a huge opportunity for Canada’s workforce.”

Looking past the immediate jobs tied to construction activity in this period, McKay also highlighted the supply chain elements of the expansion, where knowledge in wiring, power electronics, and control systems faces strong demand.

“Often, we think about the end product, but there are refurbishment facilities in Toronto right now that are taking apart wind turbine generators and putting them back together,” said McKay. “That’s shop work, that’s factory work, where all the wiring, electronics, all of that kind of stuff, is going to be needing some expertise.”