New study identifies the economic potential of Alberta’s wind energy sector

As we’ve mentioned here before, the Renewable Energy Program (REP) has positioned Alberta to be Canada’s largest market for new wind energy investment for the next decade. The REP ensures this by providing contracts for 5,000 MW of new renewable energy capacity, in order to reach the Alberta government’s goal of 30 per cent of electricity coming from renewable sources by 2030.

As the most cost-competitive source of renewable energy in Alberta today, wind energy is well positioned to provide the majority of new renewable energy required to meet the government’s commitment. According to a new report by The Delphi Group that we released today, growing the wind energy sector will also create jobs and a more prosperous Alberta.

The report, “Alberta Wind Energy Supply Chain Study”, finds that, if wind energy were to be awarded with contracts for 4,500 MW, it would result in $8.27 billion in investments by wind energy developers. These investments would provide approximately 15,000 job years of employment and $3.6 billion in local spending in project development and construction by 2030.

Alberta’s strengths: supply and skills

Alberta’s wind energy capacity currently produces enough electricity to meet six per cent of the province’s electricity demand, enough to power about 625,000 average sized homes for a year. With some of the best onshore wind resources in Canada, Alberta has huge untapped potential to produce more of this cost-effective renewable energy.

The province is also home to a tremendously skilled workforce that could fill the jobs in a growing wind energy sector. Many of the skills and occupations required to develop wind projects – such as engineering, construction, operations and maintenance – are transferable from the oil and gas sector.

What Alberta has to gain: jobs, local spending, export opportunities

Job opportunities, and many of them. Significant opportunities exist for Alberta-based firms in the areas of:

• Environmental monitoring and site planning
• Excavating, concrete, steel, metal fabrication/welding, electrical work, and sub-station control systems
• Civil engineering work in areas such as road building and site preparation
• Construction and upgrading of sub-stations, transmission lines, and cabling
• Transportation of and route planning for large turbine components and equipment
• Operations and maintenance, such as grid and system integration, balance-of-plant operations, security systems, and the monitoring and maintenance of electrical, SCADA, and control systems

Economic opportunities. With 4,500 MW of utility-scale wind energy capacity being added to the grid by 2030, local spending in Alberta related to project development and construction could reach $3.6 billion. With $137 million expected in local operations and maintenance spending, the total exceeds $3.7 billion. The report also estimates that the wind industry would contribute $25.5 million in municipal property taxes and $13.5 million in land lease payments to Alberta land owners during that period.

New technologies, such as advanced manufacturing, 3-D printing, and virtual reality, have the potential to revolutionize local production and reap further economic benefits for the province.

Equally important, the sector can play a role in diversifying Alberta’s economy – helping to reduce its vulnerability to the boom-and-bust cycle that typifies the oil and gas industry.