Waterloo Region Can Lead and Benefit with Wind Energy Development

by Catharine Gerhard, Business Development Officer, CTT Inc

Worldwide wind energy production capacity has increased at an average annual rate of 25% over the past ten years according to the Canadian Wind Energy Association. With this rapid success in growth, Waterloo Region has the capacity, talent and opportunity to develop on wind energy successes and acquire the economic rewards that are available.

The total global installed wind energy production capacity at the close of 2009 was 157,899 MW, which is an increase of 37,466 MW from the previous year. The United States and China led growth in the wind market growing 40% and 100% in 2009 respectively.

In Canada, electricity generated from wind is already powering almost 1 million homes and businesses in a clean, reliable and efficient manner. The Canadian Wind Energy Association (CanWEA) estimates the current installed capacity at 3,432 MW with 1,208 MW of wind energy generated in the province of Ontario. CanWEA launched a new supply chain study CanWEA/CME Wind Industry Supply Chain Opportunities for Canadian Manufacturers that outlines the competitive position Ontario has in leveraging the Green Energy Act/Feed in tariff where the industry is projected to grow from 3432MW to 12000 MW by 2015.

As the aging energy infrastructure approaches, market growth in wind, and the pressure of Greenhouse Gas reduction commitments, a perfect storm is developing for the Canadian wind industry. Between this year and 2025, 15% of Canada’s energy mix will be phased out and will need replacement. An additional 45,000 MW of generating capacity is expected to be needed during this same period. Along with the federal government’s commitment to seeing 90% of Canada’s electricity produced from non-emitting sources by 2020, it is very evident to see the lucrative attraction wind energy development will bring to Canada. In September 2009, the Ontario government launched the Green Energy Act and Feed-in Tariff program. It is North America’s first comprehensive Feed-in tariff program for renewable energy. Tariffs range between 13.5 ¢/kWh (onshore) to 19.0 ¢/kWh (offshore) for wind energy projects.

So what opportunities exist here is Waterloo Region?

Waterloo Region’s strategic location and our generous access to talent through our post secondary institutions combined with a strong industrial base ready to serve the development of wind energy, are just a few reasons why our region is primed for success in the alternative energy market.

Major wind energy sites along the windy shorelines of the Great Lakes on both sites of the Canada-US border and major population centres, are just a few examples of completed wind energy projects working in our own backyard.

It’s estimated that 70% of the total cost of turbine comes from 4 main components: turbine blades, turbine tower, gearbox and pitch and yaw control systems. The large size of turbines (100m tall constructed from 8,000+ parts) provides opportunity for local companies to supply since components are too large and thus too expensive to ship. First immediate opportunity include: Tower sections, rotor blades, nacelle assemblies and covers, casting and forgings. Second immediate opportunity include: engineering procurement and construction services, logistics, craning, transformers and geotechnical and site preparation services at the wind farms. CTT along with other Southwestern communities undertook a wind supplier study in August 2009. The study identified local industry supply chain capabilities are in large and medium size fabrication, large and medium size machining, casting and forging. The proximity to the strong US wind energy markets, the well-established export orientation of the region and its competitiveness, positions South Western Ontario to become a leading supplier to the wind energy sector.

I attended the AWEA Wind Energy Exhibition in Dallas May 23-26. It was excellent to see Virtek and Moventas (both local companies) participating in the trade show. This productive event allowed me the opportunity to meet with investors. Many investors are seeking partnerships with local companies and the opportunities in the wind energy market right now couldn’t be any greater.

Key Development Resources and Events:

If you are interested in partnership, be sure to register your company in the Directory of Ontario Wind Energy Manufacturers and Suppliers https://www.showreg.net/OWEI2009/ to be considered by Wind Power OEMs who are seeking suppliers. In addition, attend CanWEA’s Wind Matters Seminar Series: Building the Wind Energy Supply Chain in Toronto on June 9-10 http://www.canwea.ca/events/windmatters10_e.php.

On Tuesday June 1, 2010, you can also attend the complimentary industry session held at the International Green Energy Conference at University of Waterloo on Feed-in Tarrifs and Wind Power Supply Chain Opportunities: http://rewablenergyindustryworkshops.eventbrite.com/

CTT will also be attending the Husum, Germany Wind Power 2010 Show September 21-25, 2010. Join CTT in investment meetings with wind power companies. For more information click here.

For more information:

I am available to discuss any Cleantech related issues with you at catharine@techtriangle.com or 519.747.2541 ext. 202.

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About Canada's Technology Triangle Inc

Canada's Technology Triangle Inc is the not-for-profit, public-private regional economic development partnership marketing Waterloo Region and the cities of Cambridge, Kitchener and Waterloo to the world. Its mandate is to attract new businesses, investment and talent, while promoting regional economic growth.

The organization works closely with the Economic Development Departments of its partner municipalities, member-based business organizations and the four post-secondary educational institutions. The area known as Canada’s Technology Triangle includes Waterloo Region, the cities of Cambridge, Kitchener and Waterloo and the townships of North Dumfries, Wellesley, Wilmot and Woolwich.

260 King Street West, 3rd Floor, Kitchener, ON N2G 1B6 | 519-747-2541 | info@techtriangle.com.