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10 August 2009
Originally published in the Hill Times on August 10, 2009
Wind energy represents a great opportunity to ensure a sustainable and affordable energy future for Canada.
As many countries recognize pressure on existing energy systems and a future that is far more carbon constrained, wind energy is experiencing a renaissance. The United States leads the world in installed wind energy capacity, but China is not far behind. In fact, China accounted for the largest national expansion in the global wind energy market.
Canada lags behind, however, on both installed developments and policy support for wind energy. There are several reasons this needs to change.
Economic imperatives are putting pressure on our existing energy systems. The Obama administration is doggedly pursuing an American cap and trade system, which has serious risks for the competiveness of Canadian businesses. Our ability to export to the United States may be limited if we don’t meet their emission standards. The US driven cap and trade system will also cause conventional energy prices to rise as they begin to reflect the true price of carbon.
To meet the coming economic and environmental challenges, Canada can and should develop its world class wind resource.
Of the renewable energies, wind is the most commercialized. This means the technology already exists, is readily available and can be easily implemented. As the global wind energy market grows, economies of scale will be enhanced. Technology will further improve and prices will continue dropping.
Wind energy can also help us tackle the “low hanging fruit” of our greenhouse gas emissions. Our electricity system, while much lower emitting than the US, still contributes around 17% of total Canadian emissions. While more than half of Canadian electricity comes from hydro, making for a relatively clean electrical system – many regions still rely on coal. Replacing coal fired electrical plants with renewable energy sources could significantly cut our emissions.
Wind energy can diversify our economy, provide supplemental income to our farmers and help reinvigorate rural economies.
Provincial wind energy targets have combined their environmental objectives with the goal of rural reinvigoration. Murdochville, Quebec is an example of a rural town in decline that has seen its economy revived by the wind farms developed on its slopes. This is partially a result of a provincial policy that wind farms must include a certain percentage of parts and turbines sourced locally.
Small landowners and farmers can also benefit from wind energy development by leasing small portions of their land to wind energy developers or by starting community energy projects to feed electricity into the grid. Royalty rates can be up to $7000 annually, and farmers can continue to work the vast majority of their land.
We need a focused way to ensure greater and cost effective development of our wind resources. Governments have a role in supporting this, especially when it comes to effective incentive programs. An obstacle for wind developers is the uncertainty in the energy market, and government programs like the EcoEnergy Plan for Renewable Energy can help to reduce this.
This program, while modest to begin with, has been fully subscribed and is estimated to run out of funding this fall. In contrast to the policy support wind developers receive elsewhere, the program is not slated for renewal. Without these types of programs it will be difficult to get a burgeoning wind energy industry off the ground – especially when investors compare Canada with the American market.
Canada is known as a global energy power, but what is stopping us from becoming a wind energy leader? Economic and environmental imperatives all point to the importance of wind power. For a future energy system that is sustainable and affordable we need the government to be forward thinking and provide greater policy support for Canadian wind energy development.
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