Solar power in Canada
INTRODUCTION:
California based Energy Innovations Corporation (EIC) manufactures and develops solar technologies for commercial and residential properties. The firm’s flagship product, the Sunflower System, is the first high concentration photovalic (PV) system designed for commercial rooftop and adjacent ground-mounted applications. By combining the world's most efficient solar cells with proprietary lenses, self-powered tracking, and a unique two-axis tracking carousel, the Sunflower delivers more energy at less cost than traditional PV systems. EIC is currently in the final stages of testing and expect to deliver the first commercial units in 2008. The Sunflower produces more energy over the course of the day than a traditional PV system of equal capacity. This extra energy is particularly helpful in making a system more cost-effective, as the cost of utility-supplied electricity the system is displacing during afternoon "peak" periods is often substantially more expensive than at other times of the day .
At first glance, Canada is an ideal market for the Sunflower System for a number of reasons. Its location and trade agreements with the United States make it easy and accessible. Also, recent government initiatives to fund “green” or energy-saving renovations and construction projects make it an attractive market for solar energies. Because the Sunflower is a higher-output system than traditional PVs, Canada’s dark winters will be less of a problem than with traditional solar systems.
In this report, I will assess the Canadian market for solar energy. I will determine which provinces and markets are most attractive and will consider market potential for the Sunflower in geographical, cultural, political, economic, technological, and industrial contexts. Canada is a market with a great deal of support and government funding for renewable technology, but Chinese and Canadian firms are already well entrenched in the Canadian market. Therefore, I will assess whether the benefits of the Sunflower System will make it a viable competitor in this growth market.
OVERVIEW:
Canada is the second largest landmass in the world and the United States’ number one trading partner. While often seen as “the 51st state” to Americans, Canada is a diverse nation with a number of policies and practices that create a culture that is distinctly different than that of America. Canada generally supports NATO on international issues. It has been involved in both World Wars, as well as the Korean War, but it’s military has played a peacekeeping role in recent decades. As a government and population, Canada is more vocal in its concerns about environmental conservation than the United States, especially in its major urban centers.
Major Canadian cities include Montreal (population 3,192,110), Ottawa (989,165) Toronto (population 4,356,845), Winnipeg (population 662,520), Calgary (population 885,100), Edmonton (population 871,175), and Vancouver (population 1,861,975) .
The country is abundant in natural resources and primarily exports agricultural goods, oil, and lumber. Most major automakers have plants in Canada, and Bombardier, a leading manufacturer of trains, aircraft, and recreational snow and watercraft is based in Quebec. Canada will play host to the 2010 Winter Olympic Games in Vancouver and Whistler, which is expected to draw a great deal of international attention, evidenced by previous experiences hosting Expo ’86, and Olympiads in Montreal and Calgary. Green mandates are an integral part of the 2010 Olympics, and the Vancouver Olympic Organizing Committee (VANOC) plans to make the 2010 Olympics the greenest games in history .
The Conservative party took power in 2006, forming a minority government. This ended several decades of Liberal party rule. Federal Liberals recently elected a new leader, but an election is not expected to be forthcoming. Although the previous government ratified the Kyoto protocol, which, along with other benchmarks, sets emissions targets for nations; Jim Brown, the current environment minister, has dismissed Kyoto as “unattainable” and has rolled out a new environmental program that, while still extremely aggressive, does not contain Kyoto’s strict mandates.
GEOGRAPHY AND CLIMATE:
Canada’s distinct geographical and climate zones are depicted on the following map:
Part of the Canadian mainland and most of the Arctic Archipelago fall within the arctic temperature zone; the remainder of the country is more temperate. As a consequence, general climatic conditions range from the extreme cold characteristic of the Arctic regions to the moderate temperatures of more southerly latitudes. The Canadian climate is marked by wide regional variations. In the Maritime provinces (New Brunswick, Nova Scotia, and Prince Edward Island), extremes of winter cold and summer heat are modified by oceanic influences, which also cause considerable fog and precipitation. Along the western coast, which is under the influence of warm ocean currents and moisture-laden winds, mild summers and winters, high humidity, and abundant precipitation are characteristic. In the central plains, or Cordilleran region, the higher western slopes of certain uplifts, particularly the Selkirk and the Rocky mountain ranges, receive sizable amounts of rain and snow, but the eastern slopes and the central plateau region are extremely arid, marked by warm summers and cool winters. A feature of the Cordilleran region is the Chinook, a warm, dry westerly wind that substantially ameliorates winter conditions in the Rocky Mountain foothills and adjoining plains, often causing great daily changes . Because of its northern location, much of Canada experiences extended daylight during the summer months.
Implications For EIC
Southern Canadian markets, especially the central Cordilleran region are most attractive for solar power and for the Sunflower System. In the North, combination systems that use and store solar energy in the summer and are able to run off hydroelectricity in the winter will be more marketable. Because of its sheer size, Canada has many remote locations. Structures far from urban centers are also important candidates for solar power, primarily large businesses like wilderness lodges that can benefit from EIC’s large industrial products.
CULTURE:
Canada is often described as a “mosaic” with many distinct ethnic and cultural groups. The most notable cultural issue is the English/French dichotomy. The province of Quebec was originally a French territory and was captured by the English in the late 18th century. To this day, Quebec remains a distinct society and is largely French speaking. Canada has two official languages, English and French. Other cultures are also prevalent. Canada’s aggressive immigration policies have attracted a large number of professionals, particularly from Asian countries; thus, the country boasts large ethnic Chinese, Korean, Japanese, Vietnamese, Filipino, and Indian populations.
Canada, like many other nations, is faced with an aging population. It has a relatively high level of education, particularly in its urban centers and the government is actively trying to meet the country’s labor force challenges by recruiting educated immigrants. Notably, the Canadian government extended permanent resident status to business owners from Hong Kong who were willing to “buy in” to the Canadian economy for a set amount in the months leading up to the Chinese takeover of the province in 1997.
Specific Demographic Data:
Population: 31,612,987
Median Age: 37.6
Housing
Total Private Households: 29,552,305
Family Households With Children: 3,530,180
Family Households Without Children: 3,237,620
Language
English: 17,572,170
French: 6,741,955
Other: 5,202,240
Ethnicity
Aboriginal/First Nations: 976,305
Chinese: 1,209,395
South Asian: 917,070
Black: 662,215
Filipino: 308,575
Labor Force
Age 15-24: 2,581,445
Age 25-54: 11,431,345
Age 55+: 1,859,285
Average Age: 39.0
Incomes
Average Income: $31,757
Median Family Income: $72,524
Education and Earnings
High School or Less: 7,596,640, $34,631
College or Trades: 5,015,035, $41,072
University or Graduate School: 3,676,630, $61,156
Countrywide Statistics
Unemployment Rate: 6.1%
GDP (purchasing power parity): $1.178 trillion (2006 est.)
GDP (official exchange rate): $1.088 trillion (2006 est.)
GDP - real growth rate: 2.7% (2006 est.)
GDP - per capita (PPP): $35,600 (2006 est.)
GDP - composition by sector:
Agriculture: 2.3%
Industry: 29.2%
Services: 68.5% (2006 est.)
Labor force: 17.59 million (2006 est.)
Labor force - by occupation:
Agriculture 2%, manufacturing 14%, construction 5%, services 75%, other 3% (2004)
Population below poverty line: 15.9%; note - this figure is the Low Income Cut-Off (LICO), a calculation that results in higher figures than found in many comparable economies; Canada does not have an official poverty line (2003)
Household income or consumption by percentage share:
Lowest 10%: 2.8%
Highest 10%: 23.8% (1994)
Distribution of family income - Gini index: 33.1 (1998)
Inflation rate (consumer prices): 2% (2006 est.)
Investment (gross fixed): 21.3% of GDP (2006 est.)
Budget:
Revenues: $183.5 billion
Expenditures: $181.8 billion; including capital expenditures of $NA (2005 est.)
Public debt: 65.4% of GDP (2006 est.)
Green Initiatives and Implications for EIC:
While Canadian interest in Green policies and practices varies by region, the country is seen as progressive on environmental issues and there is intense public pressure for environmental reform. The Federal Government has responded with tax breaks to citizens who buy fuel-efficient cars and renovate their homes to make them more energy efficient.
There has been a strong movement toward green issues in recent years, most notably in British Columbia, where the government is heavily subsidizing renewable energy technologies, including Victoria’s Carmanah Corp. a solar power company with quarterly sales of $14.9 million .
Affluent populations concerned with green issues, strong government initiatives for environmental projects and renewable energies, as well as a strong Canadian dollar make current conditions for entry into Canada favorable. Forestry, agricultural, and manufacturing industries are excellent candidates for solar energy. There is also potential to contract with First Nations tribes on Native lands and projects.
POLITICAL AND LEGAL:
Canada is divided into ten provinces: Alberta, British Columbia, Manitoba, Saskatchewan, Ontario, Quebec, New Brunswick, Newfoundland and Labrador, Prince Edward Island, and Nova Scotia, and three territories: Northwest Territories, Yukon Territory, and Nunavut. The country’s independence was officially recognized by the UK on December 11, 1931 but it gained autonomy on July 1, 1867 with the union of British North American colonies. Canada’s constitution is, much like Britain’s, largely made up of unwritten and written acts, customs, judicial decisions, and traditions; the written part of the constitution consists of the Constitution Act of 29 March 1867, which created a federation of four provinces, and the Constitution Act of 17 April 1982, which transferred formal control over the constitution from Britain to Canada, and added a Canadian Charter of Rights and Freedoms as well as procedures for constitutional amendments. The legal system is based on English common law, except in Quebec, where civil law system based on French law prevails. Education and healthcare are also different in Quebec than in the rest of Canada .
Canada is governed by a bicameral Parliament consisting of a Senate (105 seats; members appointed by the governor general with the advice of the prime minister and serve until reaching 75 years of age) and the House of Commons (308 seats; members elected by direct, popular vote to serve five-year terms) . The country’s two major political parties are the Liberal and Conservative parties, while secondary parties Bloc Quebecois and the New Democratic Party (NDP) also hold seats in the House of Commons. The Green Party is also a notable voice in Canadian government. Steven Harper’s Conservative party came to power with a minority government (meaning that the Conservatives need the backing of at least one other party in order to pass legislation) in 2006, with the next election slated for 2011, though many analysts suggest that it will happen earlier since Stephane Dion, an outspoken environmental activist, took control of the Liberal Party in early 2007.
Implications for EIC:
Canada’s diverse and dynamic government is presently very focused on environmental programs, with the major parties trying to “out-green” each other. Stephane Dion is a longtime environmental activist (he has a dog named Kyoto) who has formed alliances with the Green Party, while the Conservatives have spent the past year rolling out environmental programs to remain competitive with the Liberals. Politically, Canada is very friendly to alternative energy companies, and there is market potential for the Sunflower System in public structures.
ECONOMY AND INDUSTRY:
An affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US. Given its great natural resources, skilled labor force, and modern capital plant, Canada enjoys solid economic prospects. Superior fiscal management has produced consecutive balanced budgets since 1997, although public debate continues over how to manage the rising cost of the publicly funded healthcare system. Exports account for roughly a third of GDP. Canada enjoys a substantial trade surplus with its principal trading partner, the US, which absorbs about 85% of Canadian exports. Canada is the US' largest foreign supplier of energy, including oil, gas, uranium, and electric power . In recent years, the Canadian dollar has made substantial gains against the American dollar, opening the door for increased imports from the United States.
Major industries include transportation equipment, chemicals, processes and unprocessed minerals, food products, wood and paper products, fish products, petroleum and natural gas. The country has a robust service sector, with 67% of the labor force employed in service industries. Notably, Canada is a major producer and exporter of electricity, particularly to California. The country produced 573 billion kWh in 2004, 28% of which was by fossil fuel production, 57.9% from hydroelectric, 12.9% from nuclear and 1.3% from other sources. Consumption was 522.4 billion kWh in 2004, while Canada exported 33.01 kWh and imported 22.48 billion kWh . It is important to note that since 2004, rising oil prices, distrust of nuclear facilities, and environmental concerns have strengthened the alternative energy market.
Implications for EIC:
While less favorable solar markets like British Columbia are exporting electricity from hydroelectric sources to the United States, oil-producing Alberta and the arid prairie regions rely on fossil fuels for energy. With the strong Canadian dollar, environmentally concerned citizenry and healthy economy, Canada, particularly Alberta, Saskatchewan, and Manitoba are excellent markets for solar energy. Government subsidization for solar power to be used in the agricultural sector is also a very real possibility.
TECHNOLOGY AND INFESTRUCTURE:
Canada has well developed highway and rail infestructures and has major ports in Vancouver, Halifax, Prince Rupert, and Montreal. The country has 509 airports that can support jet traffic. The country also boasts a well-developed technological infestructure with approximately 34 million telephone users, 760 internet service providers, and 21.9 million internet users in 2005 .
Implications for EIC:
As a Western industrialized nation sharing an international border, technology, and infestructure with the United States, Canada is an uncomplicated highly accessible market for large-scale industrial products.
CONCLUSIONS AND RECOMMENDATIONS:
As I have stated throughout the paper, Canada is an excellent market for international expansion. Because of the country’s proximity to and commonalities with the United States, expansion into Canada is a prudent step in EIC’s internationalization plan. A culture of conservation and a concerned, affluent population, a receptive government willing to subsidize sustainable industry, free trade agreements and a long standing trade relationship with the United States make Canada a highly attractive market for the Sunflower System. Climactic conditions conducive to solar power in areas that are currently using fossil fuels for electricity production further illustrate the appeal of the Canadian market.
I recommend that EIC enter the Canadian market by focusing on the agricultural and manufacturing industrial markets in Alberta, Manitoba, and Saskatchewan, with eventual expansion into residential markets and into other provinces, notably Ontario and Quebec. Contingent on the success of market entry, I recommend that EIC then approach the Canadian Government and First Nations Officials about large public contracts. Long-term recommendations include a possible production and/or assembly facility in Ontario and feasibility studies for the Sunflower System in Ontario’s manufacturing plants. In sum, the Canadian market offers boundless potential and in my opinion is a large and necessary component of any alternative energy export strategy.
REFERENCES:
1. Energy Innovations, 2007. Retrieved June 26, 2007 from http://www.energyinnovations.com/products/
2. Statistics Canada, 2007. “Population Data.” Retrieved June 26, 2007 from http://www40.statcan.ca/l01/ind01/l3_3867.htm?hili_none
3. Vancouver Olympic Organizing Committee, 2007. “Sustainability.” Retrieved June 26, 2007 from www.vancouver2010.com
4. "Canada," Microsoft (R) Encarta. Copyright (c) 1994 Microsoft Corporation. Copyright (c) 1994 Funk & Wagnall's Corporation. MAP BY ENVIRONMENT CANADA, 2000
5. CIA World Factbook (2007) “Canada.” Retrieved June 26, 2007 from https://www.cia.gov/library/publications/the-world-factbook/print/ca.html
6. Carmanah Corporation (2007) “Investor Relations.” Retrieved June 26, 2007 from www.carmanah.com
California based Energy Innovations Corporation (EIC) manufactures and develops solar technologies for commercial and residential properties. The firm’s flagship product, the Sunflower System, is the first high concentration photovalic (PV) system designed for commercial rooftop and adjacent ground-mounted applications. By combining the world's most efficient solar cells with proprietary lenses, self-powered tracking, and a unique two-axis tracking carousel, the Sunflower delivers more energy at less cost than traditional PV systems. EIC is currently in the final stages of testing and expect to deliver the first commercial units in 2008. The Sunflower produces more energy over the course of the day than a traditional PV system of equal capacity. This extra energy is particularly helpful in making a system more cost-effective, as the cost of utility-supplied electricity the system is displacing during afternoon "peak" periods is often substantially more expensive than at other times of the day .
At first glance, Canada is an ideal market for the Sunflower System for a number of reasons. Its location and trade agreements with the United States make it easy and accessible. Also, recent government initiatives to fund “green” or energy-saving renovations and construction projects make it an attractive market for solar energies. Because the Sunflower is a higher-output system than traditional PVs, Canada’s dark winters will be less of a problem than with traditional solar systems.
In this report, I will assess the Canadian market for solar energy. I will determine which provinces and markets are most attractive and will consider market potential for the Sunflower in geographical, cultural, political, economic, technological, and industrial contexts. Canada is a market with a great deal of support and government funding for renewable technology, but Chinese and Canadian firms are already well entrenched in the Canadian market. Therefore, I will assess whether the benefits of the Sunflower System will make it a viable competitor in this growth market.
OVERVIEW:
Canada is the second largest landmass in the world and the United States’ number one trading partner. While often seen as “the 51st state” to Americans, Canada is a diverse nation with a number of policies and practices that create a culture that is distinctly different than that of America. Canada generally supports NATO on international issues. It has been involved in both World Wars, as well as the Korean War, but it’s military has played a peacekeeping role in recent decades. As a government and population, Canada is more vocal in its concerns about environmental conservation than the United States, especially in its major urban centers.
Major Canadian cities include Montreal (population 3,192,110), Ottawa (989,165) Toronto (population 4,356,845), Winnipeg (population 662,520), Calgary (population 885,100), Edmonton (population 871,175), and Vancouver (population 1,861,975) .
The country is abundant in natural resources and primarily exports agricultural goods, oil, and lumber. Most major automakers have plants in Canada, and Bombardier, a leading manufacturer of trains, aircraft, and recreational snow and watercraft is based in Quebec. Canada will play host to the 2010 Winter Olympic Games in Vancouver and Whistler, which is expected to draw a great deal of international attention, evidenced by previous experiences hosting Expo ’86, and Olympiads in Montreal and Calgary. Green mandates are an integral part of the 2010 Olympics, and the Vancouver Olympic Organizing Committee (VANOC) plans to make the 2010 Olympics the greenest games in history .
The Conservative party took power in 2006, forming a minority government. This ended several decades of Liberal party rule. Federal Liberals recently elected a new leader, but an election is not expected to be forthcoming. Although the previous government ratified the Kyoto protocol, which, along with other benchmarks, sets emissions targets for nations; Jim Brown, the current environment minister, has dismissed Kyoto as “unattainable” and has rolled out a new environmental program that, while still extremely aggressive, does not contain Kyoto’s strict mandates.
GEOGRAPHY AND CLIMATE:
Canada’s distinct geographical and climate zones are depicted on the following map:
Part of the Canadian mainland and most of the Arctic Archipelago fall within the arctic temperature zone; the remainder of the country is more temperate. As a consequence, general climatic conditions range from the extreme cold characteristic of the Arctic regions to the moderate temperatures of more southerly latitudes. The Canadian climate is marked by wide regional variations. In the Maritime provinces (New Brunswick, Nova Scotia, and Prince Edward Island), extremes of winter cold and summer heat are modified by oceanic influences, which also cause considerable fog and precipitation. Along the western coast, which is under the influence of warm ocean currents and moisture-laden winds, mild summers and winters, high humidity, and abundant precipitation are characteristic. In the central plains, or Cordilleran region, the higher western slopes of certain uplifts, particularly the Selkirk and the Rocky mountain ranges, receive sizable amounts of rain and snow, but the eastern slopes and the central plateau region are extremely arid, marked by warm summers and cool winters. A feature of the Cordilleran region is the Chinook, a warm, dry westerly wind that substantially ameliorates winter conditions in the Rocky Mountain foothills and adjoining plains, often causing great daily changes . Because of its northern location, much of Canada experiences extended daylight during the summer months.
Implications For EIC
Southern Canadian markets, especially the central Cordilleran region are most attractive for solar power and for the Sunflower System. In the North, combination systems that use and store solar energy in the summer and are able to run off hydroelectricity in the winter will be more marketable. Because of its sheer size, Canada has many remote locations. Structures far from urban centers are also important candidates for solar power, primarily large businesses like wilderness lodges that can benefit from EIC’s large industrial products.
CULTURE:
Canada is often described as a “mosaic” with many distinct ethnic and cultural groups. The most notable cultural issue is the English/French dichotomy. The province of Quebec was originally a French territory and was captured by the English in the late 18th century. To this day, Quebec remains a distinct society and is largely French speaking. Canada has two official languages, English and French. Other cultures are also prevalent. Canada’s aggressive immigration policies have attracted a large number of professionals, particularly from Asian countries; thus, the country boasts large ethnic Chinese, Korean, Japanese, Vietnamese, Filipino, and Indian populations.
Canada, like many other nations, is faced with an aging population. It has a relatively high level of education, particularly in its urban centers and the government is actively trying to meet the country’s labor force challenges by recruiting educated immigrants. Notably, the Canadian government extended permanent resident status to business owners from Hong Kong who were willing to “buy in” to the Canadian economy for a set amount in the months leading up to the Chinese takeover of the province in 1997.
Specific Demographic Data:
Population: 31,612,987
Median Age: 37.6
Housing
Total Private Households: 29,552,305
Family Households With Children: 3,530,180
Family Households Without Children: 3,237,620
Language
English: 17,572,170
French: 6,741,955
Other: 5,202,240
Ethnicity
Aboriginal/First Nations: 976,305
Chinese: 1,209,395
South Asian: 917,070
Black: 662,215
Filipino: 308,575
Labor Force
Age 15-24: 2,581,445
Age 25-54: 11,431,345
Age 55+: 1,859,285
Average Age: 39.0
Incomes
Average Income: $31,757
Median Family Income: $72,524
Education and Earnings
High School or Less: 7,596,640, $34,631
College or Trades: 5,015,035, $41,072
University or Graduate School: 3,676,630, $61,156
Countrywide Statistics
Unemployment Rate: 6.1%
GDP (purchasing power parity): $1.178 trillion (2006 est.)
GDP (official exchange rate): $1.088 trillion (2006 est.)
GDP - real growth rate: 2.7% (2006 est.)
GDP - per capita (PPP): $35,600 (2006 est.)
GDP - composition by sector:
Agriculture: 2.3%
Industry: 29.2%
Services: 68.5% (2006 est.)
Labor force: 17.59 million (2006 est.)
Labor force - by occupation:
Agriculture 2%, manufacturing 14%, construction 5%, services 75%, other 3% (2004)
Population below poverty line: 15.9%; note - this figure is the Low Income Cut-Off (LICO), a calculation that results in higher figures than found in many comparable economies; Canada does not have an official poverty line (2003)
Household income or consumption by percentage share:
Lowest 10%: 2.8%
Highest 10%: 23.8% (1994)
Distribution of family income - Gini index: 33.1 (1998)
Inflation rate (consumer prices): 2% (2006 est.)
Investment (gross fixed): 21.3% of GDP (2006 est.)
Budget:
Revenues: $183.5 billion
Expenditures: $181.8 billion; including capital expenditures of $NA (2005 est.)
Public debt: 65.4% of GDP (2006 est.)
Green Initiatives and Implications for EIC:
While Canadian interest in Green policies and practices varies by region, the country is seen as progressive on environmental issues and there is intense public pressure for environmental reform. The Federal Government has responded with tax breaks to citizens who buy fuel-efficient cars and renovate their homes to make them more energy efficient.
There has been a strong movement toward green issues in recent years, most notably in British Columbia, where the government is heavily subsidizing renewable energy technologies, including Victoria’s Carmanah Corp. a solar power company with quarterly sales of $14.9 million .
Affluent populations concerned with green issues, strong government initiatives for environmental projects and renewable energies, as well as a strong Canadian dollar make current conditions for entry into Canada favorable. Forestry, agricultural, and manufacturing industries are excellent candidates for solar energy. There is also potential to contract with First Nations tribes on Native lands and projects.
POLITICAL AND LEGAL:
Canada is divided into ten provinces: Alberta, British Columbia, Manitoba, Saskatchewan, Ontario, Quebec, New Brunswick, Newfoundland and Labrador, Prince Edward Island, and Nova Scotia, and three territories: Northwest Territories, Yukon Territory, and Nunavut. The country’s independence was officially recognized by the UK on December 11, 1931 but it gained autonomy on July 1, 1867 with the union of British North American colonies. Canada’s constitution is, much like Britain’s, largely made up of unwritten and written acts, customs, judicial decisions, and traditions; the written part of the constitution consists of the Constitution Act of 29 March 1867, which created a federation of four provinces, and the Constitution Act of 17 April 1982, which transferred formal control over the constitution from Britain to Canada, and added a Canadian Charter of Rights and Freedoms as well as procedures for constitutional amendments. The legal system is based on English common law, except in Quebec, where civil law system based on French law prevails. Education and healthcare are also different in Quebec than in the rest of Canada .
Canada is governed by a bicameral Parliament consisting of a Senate (105 seats; members appointed by the governor general with the advice of the prime minister and serve until reaching 75 years of age) and the House of Commons (308 seats; members elected by direct, popular vote to serve five-year terms) . The country’s two major political parties are the Liberal and Conservative parties, while secondary parties Bloc Quebecois and the New Democratic Party (NDP) also hold seats in the House of Commons. The Green Party is also a notable voice in Canadian government. Steven Harper’s Conservative party came to power with a minority government (meaning that the Conservatives need the backing of at least one other party in order to pass legislation) in 2006, with the next election slated for 2011, though many analysts suggest that it will happen earlier since Stephane Dion, an outspoken environmental activist, took control of the Liberal Party in early 2007.
Implications for EIC:
Canada’s diverse and dynamic government is presently very focused on environmental programs, with the major parties trying to “out-green” each other. Stephane Dion is a longtime environmental activist (he has a dog named Kyoto) who has formed alliances with the Green Party, while the Conservatives have spent the past year rolling out environmental programs to remain competitive with the Liberals. Politically, Canada is very friendly to alternative energy companies, and there is market potential for the Sunflower System in public structures.
ECONOMY AND INDUSTRY:
An affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US. Given its great natural resources, skilled labor force, and modern capital plant, Canada enjoys solid economic prospects. Superior fiscal management has produced consecutive balanced budgets since 1997, although public debate continues over how to manage the rising cost of the publicly funded healthcare system. Exports account for roughly a third of GDP. Canada enjoys a substantial trade surplus with its principal trading partner, the US, which absorbs about 85% of Canadian exports. Canada is the US' largest foreign supplier of energy, including oil, gas, uranium, and electric power . In recent years, the Canadian dollar has made substantial gains against the American dollar, opening the door for increased imports from the United States.
Major industries include transportation equipment, chemicals, processes and unprocessed minerals, food products, wood and paper products, fish products, petroleum and natural gas. The country has a robust service sector, with 67% of the labor force employed in service industries. Notably, Canada is a major producer and exporter of electricity, particularly to California. The country produced 573 billion kWh in 2004, 28% of which was by fossil fuel production, 57.9% from hydroelectric, 12.9% from nuclear and 1.3% from other sources. Consumption was 522.4 billion kWh in 2004, while Canada exported 33.01 kWh and imported 22.48 billion kWh . It is important to note that since 2004, rising oil prices, distrust of nuclear facilities, and environmental concerns have strengthened the alternative energy market.
Implications for EIC:
While less favorable solar markets like British Columbia are exporting electricity from hydroelectric sources to the United States, oil-producing Alberta and the arid prairie regions rely on fossil fuels for energy. With the strong Canadian dollar, environmentally concerned citizenry and healthy economy, Canada, particularly Alberta, Saskatchewan, and Manitoba are excellent markets for solar energy. Government subsidization for solar power to be used in the agricultural sector is also a very real possibility.
TECHNOLOGY AND INFESTRUCTURE:
Canada has well developed highway and rail infestructures and has major ports in Vancouver, Halifax, Prince Rupert, and Montreal. The country has 509 airports that can support jet traffic. The country also boasts a well-developed technological infestructure with approximately 34 million telephone users, 760 internet service providers, and 21.9 million internet users in 2005 .
Implications for EIC:
As a Western industrialized nation sharing an international border, technology, and infestructure with the United States, Canada is an uncomplicated highly accessible market for large-scale industrial products.
CONCLUSIONS AND RECOMMENDATIONS:
As I have stated throughout the paper, Canada is an excellent market for international expansion. Because of the country’s proximity to and commonalities with the United States, expansion into Canada is a prudent step in EIC’s internationalization plan. A culture of conservation and a concerned, affluent population, a receptive government willing to subsidize sustainable industry, free trade agreements and a long standing trade relationship with the United States make Canada a highly attractive market for the Sunflower System. Climactic conditions conducive to solar power in areas that are currently using fossil fuels for electricity production further illustrate the appeal of the Canadian market.
I recommend that EIC enter the Canadian market by focusing on the agricultural and manufacturing industrial markets in Alberta, Manitoba, and Saskatchewan, with eventual expansion into residential markets and into other provinces, notably Ontario and Quebec. Contingent on the success of market entry, I recommend that EIC then approach the Canadian Government and First Nations Officials about large public contracts. Long-term recommendations include a possible production and/or assembly facility in Ontario and feasibility studies for the Sunflower System in Ontario’s manufacturing plants. In sum, the Canadian market offers boundless potential and in my opinion is a large and necessary component of any alternative energy export strategy.
REFERENCES:
1. Energy Innovations, 2007. Retrieved June 26, 2007 from http://www.energyinnovations.com/products/
2. Statistics Canada, 2007. “Population Data.” Retrieved June 26, 2007 from http://www40.statcan.ca/l01/ind01/l3_3867.htm?hili_none
3. Vancouver Olympic Organizing Committee, 2007. “Sustainability.” Retrieved June 26, 2007 from www.vancouver2010.com
4. "Canada," Microsoft (R) Encarta. Copyright (c) 1994 Microsoft Corporation. Copyright (c) 1994 Funk & Wagnall's Corporation. MAP BY ENVIRONMENT CANADA, 2000
5. CIA World Factbook (2007) “Canada.” Retrieved June 26, 2007 from https://www.cia.gov/library/publications/the-world-factbook/print/ca.html
6. Carmanah Corporation (2007) “Investor Relations.” Retrieved June 26, 2007 from www.carmanah.com
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