{"id":67514,"date":"2026-01-28T10:21:34","date_gmt":"2026-01-28T18:21:34","guid":{"rendered":"https:\/\/energi.media\/?p=67514"},"modified":"2026-01-28T10:21:34","modified_gmt":"2026-01-28T18:21:34","slug":"canadian-solar-and-wind-project-costs-plummet","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/canadian-solar-and-wind-project-costs-plummet\/","title":{"rendered":"Canadian solar and wind project costs plummet"},"content":{"rendered":"

This article was published by the Pembina Institute<\/a> on Jan. 28, 2026.<\/em><\/p>\n

By David Pickup<\/a><\/strong><\/em><\/p>\n

It\u2019s a happy coincidence of timing: we need a lot more electricity generation, and fast \u2014 and we\u2019ve also experienced more than a decade of price reductions in renewable energy.<\/p>\n

A look at projects built in Canada shows a clear trend:\u00a0contracted energy costs from wind and solar have been cut in half over the last 10 years<\/strong>, the period of time during which most projects were built in Canada.<\/p>\n

These wind and solar projects provide concrete, local examples of how costs are coming down as the technology improves and the market matures. Each point in the graph below reflects one or more real projects from signed deals. Altogether, the deals come from procurements in seven provinces across Canada.<\/p>\n

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The utilities that operate the electricity systems in most provinces held competitive procurement processes to secure contracts. This gave the market the certainty to grow and build projects that deliver low-cost energy. To top off all that good news,\u00a0analysts expect that the cost of renewables will continue to drop further by between 25 to 50 per cent\u00a0<\/strong>over the next decade<\/strong><\/a>.<\/p>\n

In contrast, the cost of new nuclear projects, including refurbishments, has risen over the same period, so that the energy delivered by nuclear projects contracted over the last couple of years will likely be two to three times the cost of energy from renewables projects contracted in that year. We estimate the Pickering nuclear refurbishment will deliver power at $266 per megawatt-hour (MWh), and the Darlington small modular reactor project will be $152 per MWh; compare that to wind and solar procured in Saskatchewan and B.C. at $64-110 per MWh.<\/p>\n

It’s worth noting, too, that the energy from renewables will come along sooner \u2014 in the next three to five years \u2014 rather than 10 years or more for nuclear projects. It\u2019s important to move quickly as forecasts across the country show a rapid and substantial increased need for additional electricity. For example, Ontario expects electricity demand will grow by\u00a075 per cent by 2050<\/a>, while Alberta expects a\u00a026 to 44\u00a0\u00a0per cent increase<\/a>\u00a0between 2024 and 2043.<\/p>\n

Why the timing of the renewable energy price drops matters<\/strong><\/p>\n

A decade ago, wind and solar electricity generation were more expensive than other types of generation. But since then, prices have dropped steadily. Now, they\u2019re the lowest-cost form of new electricity generation, according to the grid operators in\u00a0Alberta<\/a>\u00a0and\u00a0Ontario<\/a>, as well as\u00a0global analysts<\/a>.<\/p>\n

The timing of this price drop could not have come at a better time.\u00a0Electricity demand is surging<\/a>\u00a0to accommodate the electrification of vehicles, home heating and industrial processes, so provinces across Canada are making crucial decisions about how to add more electricity to their systems. Getting more affordable electricity generation onto the grid \u2014 \u00a0fast \u2014 underpins the competitiveness of the economy.<\/p>\n

How electricity users benefit when renewable energy is added to the grid\u00a0<\/strong><\/p>\n

Even if solar panels or wind turbines are not on your shopping list, your budget can still benefit from a growing clean energy sector. That\u2019s because when the most affordable forms of new electricity generation \u2014 namely solar, wind and battery storage \u2014 are added to the electrical grid in your province or territory, they help keep electricity prices low for everybody.<\/p>\n

The biggest cost involved in the life of a wind or solar farm is the upfront capital cost to build the infrastructure. Once they\u2019re built, they run on free fuel (wind and sunshine), unlike natural gas or nuclear plants.<\/p>\n

There are effective ways of making sure this low-cost energy is still available when the sun sets and the wind isn\u2019t blowing. Ontario figured this out when it contracted 1,885 megawatts of battery storage capacity in its first long-term procurement. Extra wind and solar power is stashed away during peak energy producing hours and is discharged to the grid when it\u2019s most needed. The province is also harnessing energy savings by working with electricity consumers to reduce demand when necessary, and it\u2019s building transmission lines to move energy from high production to high consumption areas.<\/p>\n

The overall cost reductions of renewable energy over time and the continued low operating costs are the reasons why\u00a093 per cent of new electricity infrastructure<\/a>\u00a0built in the United States last year was solar, wind and batteries. It\u2019s also why renewable energy overtook coal as the largest source of electricity worldwide in 2025.<\/p>\n

Where clean energy is being added to the Canadian grid now<\/strong><\/p>\n

Canadian provinces, having recognized the value of adding more renewables to their electricity mix, are scaling up calls for wind and solar project proposals in 2026. The fact that they\u2019re using competitive auctions to secure the additional electricity means they\u2019re getting the best value for their dollar. Here\u2019s what we\u2019ll be watching this year:<\/p>\n