Opportunities in Canada's growing wind energy industry

Investment in Canada's wind sector is projected to reach $8 billion by 2012, and growth of the sector is expected to create over 16,000 jobs. Canada's wind energy capacity grew by 54 per cent in 2005 alone, aided in part by supportive national policies and programs such as the Wind Power Production Incentive (WPPI); the Canadian Renewable Conservation Expense (CRCE) and Class 43.1 Capital Cost Allowance; and support for research and development. Major long-term commitments for clean power purchases, standard offer contracts and renewable portfolio standards in several provinces are encouraging further development of the wind energy sector. This paper argued that the development of a robust Canadian wind turbine manufacturing industry will enhance economic development, create opportunities for export; and mitigate the effects of international wind turbine supply shortages. However, it is not known whether Canadian wind turbine firms are positioned to capitalize on the sector's recent growth. While Canada imports nearly all its large wind turbine generators and components, the country has technology and manufacturing strengths in advanced power electronics and small wind systems, as well as in wind resource mapping. Wind-diesel and wind-hydrogen systems are being developed in Canada, and many of the hybrid systems will offer significant opportunities for remote communities and off-grid applications. Company partnerships for technology transfer, licensing and joint ventures will accelerate Canada's progress. A recent survey conducted by Industry Canada and the Canadian Wind Energy Association (CanWEA) indicated that the total impact of wind energy related expenditures on economic output is nearly $1.38 billion for the entire sector. Annual payroll for jobs in Canada was estimated at $50 million, and substantial employment growth in the next 5 years is expected. Canada offers a strong industrial supply base capable of manufacturing wind turbine generators and components, and has a close proximity to US markets. Challenges to the development of a wind sector manufacturing base in Canada include international competition and global markets; domestic market stability; shipping costs of imported components; and human resource capacity building. Financial incentives for manufacturers are needed, as well as long-term, stable policies. It was concluded that partnerships for technology transfer, licensing and joint ventures will play a significant role in the expansion of a manufacturing base. refs., tabs., figs