supply opportunities in canada’s wind energy market stephen rach canwea toronto, ontario october...
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Supply Opportunities in Canada’s Wind Energy Market
Stephen Rach CanWEA
Toronto, OntarioOctober 6, 2010
About CanWEA
National industry association for the wind energy industry in CanadaMore than 450 members including wind turbine manufacturers, component suppliers, wind energy project developers, owners and operators and a broad range of service providers to the wind energy industryOur mission is to promote the responsible and sustainable growth of the wind energy industry in CanadaWe are engaged in:
Policy development and advocacy Federally and in all provinces
Communications and public outreachEducational and networking opportunities
Canadian Wind Market
38% average annual market growth in past 10 years2010: 750 MW2011: 1,000+ MW
Wind power currently supplies almost 2 % of Canada’s electricityEnough power to meet the needs of over 1,400,000 homes
Wind in Canada: Federal Policies
Federal government has committed by 2020Produce 90% of electricity from non-emitting sources Reduce green house gas (GHG) emissions to 20% below 2006 levels
Federal government has committed by 2050 Reduce GHG emissions 60% - 70% below 2006 levels
EcoEnergyProvides incentive for wind: 1 cent/kWh for ~4,000 MWFunding is fully allocated and Budget 2010 did not provide extensionDifficult given that the US has put in place an incentive that is 3x greater than EcoEnergy, is refundable and extends to 2012
Wind in Canada: Provincial Policies
Ontario – IPSP: 4,600 MW by 2020Expected to be higher due to the Green Energy Act
Quebec – 4,000 MW by 2016Alberta – Building transmission to support 3,200 MWBC – Wind can easily contribute 1,500 MW to targetsMaritime Provinces – Minimum 1,200 MW by 2015
If all of these commitments are met, CanWEA believes this represents a minimum of 12,000 MW by 2015
Wind: Canada's infinite source of clean energy.
2010 2016
3,499 MW3,499 MW
0.81 MW
104 MW
1,248 MW
663 MW
195 MW
164 MW
54.7 MW171.2 MW
656 MW
103.5 MW
400 MW
80 MW371 MW
1,000 MW
13,151 MW13,151 MW
500 MW
139 MW300 MW
500 MW
The Canadian Wind Market
Quebec Wind Market
Developed through a series of RFP’s from Hydro-QuebecRFP 1 – 2003: 1,000 MW
GE Wind3 farms remain to be constructed by 2011 [370 MW]
RFP 2 – 2005: 2,000 MWREpower & EnerconFarms will be in operation between 2011 and 2015
RFP 3 – 2010: 500 MW Community and First Nations developments25 MW Max sizeAwards expected by end of 2010
Quebec Market
Local Content Requirements60% or more of total wind project expenses must be made in QuebecMinimum 30% of the turbine costs must be sourced from the RCM of Matane and Gaspe Region
RFP’s 2 & 3 represent a $5.9 Billion market opportunity
Local Content Requirements60% or more of total wind project expenses must be made in QuebecMinimum 30% of the turbine costs must be sourced from the RCM of Matane and Gaspe Region
RFP’s 2 & 3 represent a $5.9 Billion market opportunity
Ontario Market
Green Energy and Green Economy Act (GEA)The most comprehensive package of policies to stimulate renewable energy development in North America
Feed-in Tariff (FIT) RatesOnshore - 13.5 ¢ / kWh Offshore - 19.0 ¢ / kWh
Local Content RequirementsRamp up from 25% to 50% domestic content by 2012 Working with the government to determine how 50% can be achieved
Ontario Market OPA Wind FIT Awards April 2010
1, 229.4 MW47 on-shore / 1 off-shore800 kW – 300 MWSome turbine OEMs awarded
General ElectricSiemensVestasEnercon
$ 4.2 billion market opportunity
1, 229.4 MW47 on-shore / 1 off-shore800 kW – 300 MWSome turbine OEMs awarded
General ElectricSiemensVestasEnercon
$ 4.2 billion market opportunity
Canadian Wind MarketOffshore Wind
Offshore wind market in Canada is in the early stages of developmentRegulations are not fully establishedOffshore Developments
Windstream Wolfe Island Shoals Inc.Kingston, OntarioFIT contract for 300 MW in April, 2010
Other proposals are in the evaluation stage
Major Component Suppliers in Canada
Proposed / Under Construction
Canadian Wind MarketImmediate Supply Opportunities
Large component manufacturingTowers and bladesForgings and castingsComponent machiningNacelle covers and sub-componentsGenerators, gear boxes and transformers
Wind farm construction servicesEngineering, procurement & constructionLogistics Geotechnical and site servicesCraning
TransformersGears GeneratorsGear boxesCastings for rotor hubs and main framesForgings for main shaftsLarge bearings
Canadian Wind MarketLong term Opportunities
Canadian Wind Market Wind Farm Operation Phase
There is substantial opportunity when wind farms are in operation
Operations and maintenance (O&M) industry to service wind farmsTurbine maintenanceGear box refurbishmentSpare parts
Minimum $ 1 billion market opportunity for operations and maintenance services
Market Entry Strategy
Visit CanWEA.ca
Subscribe to [email protected]
CanWEA / CME Manufacturing Opportunities Report
Attend the CanWEA Annual ConferenceNovember 1-3, 2010, Montreal, QC
Join CanWEA
