Canada - Report: Tax incentives needed to help boost wind energy

The government needs to provide tax incentives for research and development spending into wind energy to help Canadian companies take advantage of an industry that has been expanding at 30% a year for the past 10 years in the U.S., a new report found. The study, which is the first product from a strategic partnership between the Canadian Wind Energy Association and the Canadian Manufacturers and Exporters Association, said the industry provides “significant opportunity” for Canadian companies.

As the long-term production of mass manufactured goods shifts increasingly to cheaper emerging markets, Canadian factories must adapt their facilities to take advantage of emerging manufacturing sectors, such as wind energy, it said. Global investment in wind energy will reach more than $1 trillion U.S. in the next 10 years, creating 1.75 million new jobs, the report said. Over the past decade the global rate of growth in installed capacity has been 25%, with the U.S. outpacing the average.

“The rapid pace of wind energy development has created a strong demand for wind turbines, leaving turbine manufacturers with high demand for parts and services,” the report said. It sees opportunities for Canada in manufacturing components, construction, steel fabrication, transportation, engineering and operations and maintenance.

As well as tax incentives, the government needs to develop a strategy to encourage companies in the sector to set up operations in Canada. Partnerships between industry and universities also need to be established to help develop new technologies for next generation turbines, while colleges need to develop study courses that will help provide the skills needed in the industry, it said.

For more information please contact Trevor Sievert at ts@windfair.net