wind

Canadian wind sector stalls while the rest of the world steams ahead

A Canadian federal programme to promote investment in wind farms will expire this year, and the Canadian Wind Energy Association is concerned about the Government’s reticence to say what, if anything, will replace it.

Canada is currently ranks eleventh in the world in terms of installed wind energy capacity and sixteenth in terms of the percentage of domestic electricity generated from wind. Wind currently supplies about 1% of Canada’s electricity demand with enough power to meet the needs of 860,000 homes.

While not comparable with major success stories such as Spain, where strong government support for the wind sector has led to wind energy now covering more than 13% of Spain’s total electricity demand, Canada has seen considerable growth since the Liberal government first recognised the industry needed government support in 2001. By 2008, the Conservatives had introduced the EcoENERGY for Renewable Power programme.

This state backing has been a huge success, helping create thousands of megawatts of wind energy in the last few years (especially in Ontario, Quebec and Alberta), and leveraging millions in investment. However, industry players are now concerned that Canada may fall even further behind countries such as the United States, Spain and because of a lack of commitment from the Canadian government.

The best the Canadian government can do, notes Robert Hornung, president of the Canadian Wind Energy Association (CanWEA), is say it is "reviewing options”. “The only assumption an investor can make is that support for renewable energy is ending this fall," he adds. With the United States ramping up government investment in wind energy, the industry is worried that investment will quickly move south.

"While the wind energy industry is poised for continued growth in 2010, Canada's ability to fully capture its wind energy potential will depend in part on the actions of federal and provincial governments,” says Mr. Hornung. “The federal government must make new investments to renew its commitment to support wind energy deployment given the fact that the successful ecoENERGY for Renewable Power programme is scheduled to meet its targets this fall - a year and a half ahead of schedule."

20% renewables target

Canada has set itself the objective of generating 20% of its electricity from renewable sources by 2020 and wind energy will have to play a significant part if this target is to be met. Despite the Canadian government’s current reticence to support wind, there are some encouraging signs of progress at a state level.

CanWEA recently applauded the Ontario Government for introducing a new Feed-in Tariff (FIT) programme – the first of its kind in North America – setting a fixed price for renewable energy projects.

“This groundbreaking programme will encourage an accelerated development and growth of the wind energy industry in Ontario, resulting in new jobs, investment and rural economic renewal,” said Robert Hornung. “We hope to work proactively with the Ontario Government on a range of actions to help support more Ontario-based content in the wind energy supply and value chains."

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