The Federal Budget released on March 22, 2017 is a significant milestone for the geothermal industry in Canada. The budget expanded tax support for clean energy which will be pertinent in allowing for geothermal production. This change will allow the generally high-risk exploration that geothermal requires to write off more expenses, thus being more attractive for investors. The use flow-through shares have long been granted to junior exploration companies, allowing for success in start-up. This will be especially helpful for geothermal companies since upfront cost is higher than that of other renewables, with a longer payoff period.
More policy work and support is required for geothermal to get started in Canada. However, despite the Federal Budget only including one of CanGEA's pre-budget submission requests, this is a huge step for the industry, and CanGEA is optimistic about further steps and the ongoing support being gained.
Read the full Desmog article here
Read CanGEA's submission to the Federal Budget here
April 13, 2017
Image from Desmog Canada