As a result of the massive increase in development over the 20th century, global energy demands have exponentially increased creating a strain on the world’s energy resources. Interests into renewable energy sources have developed with the realization that the world’s global dependence on finite oil reserves is both unsustainable and damaging to the environment (Owen, 2004). Due in part to the harsh climate, energy intensive industries, and great distances between inhabitants, Canadians on average use the most energy per capita of the industrialized nations, where each citizen accounts for 21 tonnes of greenhouse gases (GHG) emissions per year (Islam et al, 2007). Although Canada has much more potential for renewable energy development it remains far behind most industrial nations in developing renewable technologies; this is due to an absence of supportive market structures and necessary government policies and initiatives (Islam et al, 2007).
Canada’s history as renewable energy developers started as a leader in the field. As a result of the oil price shocks in the 1970’s Canada made its first major steps to developing available renewable resources; biomass, solar, wind and geothermal (Islam et al, 2007). In the early 1980’s $100 million per year was invested into renewable energy technologies and methods for market penetration. Since then Canada has made some minor growth in renewable sources where it was economically convenient, such as using biomass residues, solar heating for swimming pools, and continued development in hydro power. Canada’s greatest use of renewable energy is in hydroelectric power, representing over 61% of its total generation (Islam et al, 2007). This has largely due to the availability of hydro power, however there is still so much more potential in hydro as well as other renewable sources. In 2006 Ontario took a significant step forward in developing renewable energy by introducing the first feed-in tariff in North America
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