A Status Report on Wind Energy Opportunities in Canada

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. 1 MW 212 MW 14 MW 275 MW 112 MW 15 MW 34 MW January 2006: 683 MW Installed Capacity in Canada 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. 2 MW 3500 MW 200 MW 500 MW 200 MW 2400 MW 380 MW Implementing Current Provincial Targets: 8,500+ MW by 2015 25 MW 1000 MW 400 MW (2016)

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