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A Status Report on Wind Energy Opportunities in Canada Robert Hornung, CanWEA EWEA Conference March 2, 2006 - Athens.

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Presentation on theme: "A Status Report on Wind Energy Opportunities in Canada Robert Hornung, CanWEA EWEA Conference March 2, 2006 - Athens."— Presentation transcript:

1 A Status Report on Wind Energy Opportunities in Canada Robert Hornung, CanWEA EWEA Conference March 2, 2006 - Athens

2 Wind Energy Moved Into The Mainstream in 2005 2005 was a record-setting year for the wind energy industry in Canada (239 MW) It also laid the foundation for significant and steady growth over the next few years – allowing Canada to begin to scratch the surface of its massive wind energy potential Five new manufacturing facilities established in Canada for towers, blades and nacelle shells / assembly Challenges remain, however, and must be addressed if future growth projections are to be met and exceeded in the years ahead

3 January 2006: 683 MW Installed Capacity in Canada 15 MW 112 MW 275 MW 1 MW 212 MW14 MW 34 MW 20 MW

4 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

5 Government Policy - a Critical Role 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

6 Diverse Drivers for Wind Energy Development Resource: Canada has tremendous untapped wind resources and excellent opportunities to partner with hydropower Environmental Benefits: Wind energy creates no: air / water pollution, GHG emissions, or solid or toxic wastes Rural Economic Development and Manufacturing Opportunities: Investment and job creation potential Cost: All electricity supply options increasing in cost, wind energy has no fuel cost and expects declining costs over time, rapid /incremental installation, winter peak production

7 Governments Are Demanding More 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 with Signed PPAs in January 2006

8 Implementing Current Provincial Targets: 8,500+ MW by 2015 2400 MW 200 MW 500 MW 2 MW 3500 MW200 MW 380 MW 1000 MW 400 MW (2016) 25 MW

9 8,500 MW of Wind Energy in 2015 This would produce enough electricity to meet 3.1% of Canada’s total electricity demand in 2015 This would make wind energy responsible for 16% of the electricity produced from new facilities constructed in Canada between 2005 and 2015 But it still leaves us far behind countries where wind energy already addresses a significantly larger portion of electricity demand: Demark (18%), Germany (6%), Spain (6%)

10 But….Canada can do better than 8,500 MW 14,000 MW of wind energy required to provide 5% of Canada’s electricity in 2015 – this is possible, for example: –British Columbia / Newfoundland are likely to move forward on wind energy well before 2015 –Alberta can build significantly more wind projects after transmission issues are addressed (2008 / 2009) –Ontario can build more wind after 2010 (OPA has recommended 5,000 MW by 2025) Higher levels of wind energy penetration are possible – we are only starting to tap into Canada’s massive wind energy potential

11 The Foundation is in Place – Challenges Remain (1) Policy Challenges –Ensuring wind energy’s environmental benefits are valued in emerging emissions markets –Ensuring environmental assessment requirements are effective, appropriate and efficient –Developing clarity on transmission and distribution priorities and policies –Securing enhanced domestic wind turbine / component manufacturing capacity –Streamlining procurement processes and providing mechanisms for broad participation

12 The Foundation is in Place – Challenges Remain (2) Business Challenges –Successfully engaging communities to host wind energy projects –Communicating solid information about wind energy to all stakeholders –Familiarizing financiers and insurers about wind energy projects –Developing a skilled workforce to support the wind energy industry

13 The Foundation is in Place – Challenges Remain (3) Technical Challenges –Improving wind resource assessment and wind energy forecasting –Developing wind energy standards in interconnection and other areas –Understanding the full potential to integrate wind energy into the grid

14 Wind Energy is Moving Mainstream 2005 will be remembered as the year Canada first started to act to exploit its massive wind energy potential We have made very good progress and we have reason to celebrate, but we are only beginning to act on our potential We need to build on the foundation now in place to develop a comprehensive strategy for wind energy development in Canada The good news is that a broad range of stakeholders are now committed to addressing the remaining challenges and making it happen

15 For More Information www.canwea.ca


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