by Alex Kent, MSc, Policy Manager, CanGEA
federal budget announcement on geothermal was the culmination of several years of work by CanGEA and the benefits to the industry will be immediate. The budget announced that:
“Geothermal energy is one renewable energy source with the potential to reliably meet a portion of Canada's heating and electricity generation needs, including in northern and remote communities, where reliance on fossil fuels remains high.To encourage greater use of geothermal energy, Budget 2017 proposes to:
Extend accelerated capital cost allowance [ACCA] to a broader range of geothermal projects and expenses. Expand the range of geothermal energy project expenses that are eligible as Canadian renewable and conservation expenses [CRCE], which can be fully deducted in the year incurred.”Today, I will be discussing the implications of this decision, as outlined by the above text, and the budget supplementary document.