A Status Report on Wind EnergyOpportunities in Canada
Robert Hornung, CanWEA
EWEA Conference
March 2, 2006 - Athens
Wind Energy Moved Into TheMainstream in 2005
•2005 was a record-setting year for the windenergy industry in Canada (239 MW)
•It also laid the foundation for significant andsteady growth over the next few years –allowing Canada to begin to scratch the surfaceof its massive wind energy potential
•Five new manufacturing facilities established inCanada for towers, blades and nacelle shells /assembly
•Challenges remain, however, and must beaddressed if future growth projections are to bemet and exceeded in the years ahead
January 2006: 683 MW InstalledCapacity in Canada
15 MW
112MW
275 MW
1 MW
212 MW
14 MW
34MW
20 MW
Wind Energy: Rapid Growth
• Average annual growth rate (2000-2005): 38%
• Growth is accelerating: 54% growth in 2005
• Growth rates will be even higher in 2006
Government Policy - a CriticalRole in Wind Energy Growth
•Federal
–Wind Power Production Incentive (WPPI)
•created in 2001, expanded in 2005
•has been, and is, key catalyst for provincial action
–Supportive tax policy (CRCE / Class 43.1)
•Provincial
–Renewable Portfolio Standards
–Renewable / Wind Energy procurement targets
–Standard Offer Contracts
Diverse Drivers for WindEnergy Development
•Resource: Canada has tremendous untapped windresources and excellent opportunities to partner withhydropower
•Environmental Benefits: Wind energy creates no:air / water pollution, GHG emissions, or solid or toxicwastes
•Rural Economic Development and ManufacturingOpportunities: Investment and job creation potential
•Cost: All electricity supply options increasing in cost,wind energy has no fuel cost and expects decliningcosts over time, rapid /incremental installation, winterpeak production
Governments Are DemandingMore Wind Energy
•Federal
–WPPI seeks to support 4,000 MW of development by 2010
•Provincial Targets
–Quebec –3,500 MW of wind energy (2013)
–Ontario – 2,700 MW of renewables (2010)
–Manitoba – 1,000 MW of wind energy (2014)
–Alberta – 500 MW of renewables (2008)
–NB – 400 MW of wind energy (2016)
–NS – 380 MW of wind energy (2014)
–PEI – 200 MW of wind energy (2010)
•> 3,000 MW Already Under Construction or withSigned PPAs in January 2006
Implementing Current ProvincialTargets: 8,500+ MW by 2015
2400MW
200MW
500 MW
2 MW
3500 MW
200MW
380MW
1000 MW
400 MW
(2016)
25 MW
8,500 MW of Wind Energyin 2015
•This would produce enough electricity tomeet 3.1% of Canada’s total electricitydemand in 2015
•This would make wind energy responsiblefor 16% of the electricity produced from newfacilities constructed in Canada between2005 and 2015
•But it still leaves us far behind countrieswhere wind energy already addresses asignificantly larger portion of electricitydemand: Demark (18%), Germany (6%),Spain (6%)
But….Canada can do betterthan 8,500 MW
•14,000 MW of wind energy required toprovide 5% of Canada’s electricity in 2015 –this is possible, for example:
–British Columbia / Newfoundland are likely tomove forward on wind energy well before 2015
–Alberta can build significantly more wind projectsafter transmission issues are addressed (2008 /2009)
–Ontario can build more wind after 2010 (OPA hasrecommended 5,000 MW by 2025)
•Higher levels of wind energy penetration arepossible – we are only starting to tap intoCanada’s massive wind energy potential
The Foundation is in Place –Challenges Remain (1)
•Policy Challenges
–Ensuring wind energy’s environmental benefitsare valued in emerging emissions markets
–Ensuring environmental assessmentrequirements are effective, appropriate andefficient
–Developing clarity on transmission anddistribution priorities and policies
–Securing enhanced domestic wind turbine /component manufacturing capacity
–Streamlining procurement processes andproviding mechanisms for broad participation
The Foundation is in Place –Challenges Remain (2)
•Business Challenges
–Successfully engaging communities tohost wind energy projects
–Communicating solid information aboutwind energy to all stakeholders
–Familiarizing financiers and insurers aboutwind energy projects
–Developing a skilled workforce to supportthe wind energy industry
The Foundation is in Place –Challenges Remain (3)
•Technical Challenges
–Improving wind resource assessment andwind energy forecasting
–Developing wind energy standards ininterconnection and other areas
–Understanding the full potential tointegrate wind energy into the grid
Wind Energy isMoving Mainstream
•2005 will be remembered as the year Canada firststarted to act to exploit its massive wind energypotential
•We have made very good progress and we havereason to celebrate, but we are only beginning to acton our potential
•We need to build on the foundation now in place todevelop a comprehensive strategy for wind energydevelopment in Canada
•The good news is that a broad range of stakeholdersare now committed to addressing the remainingchallenges and making it happen
For More Information
www.canwea.ca