Wind Power in Alberta: An Analysis of A Growing Industry __________________________________________________________________________________

Prepared By: Justine Lee BUEC 463 Professor Doucet December 15, 2004

Introduction In light of the mounting concern over the continual use and limits on the future use of fossil fuels and the increasing demand for new electricity generation, there has been growing interest in the area of renewable resources, as a sustainable and inexhaustible source for energy production and potential alternative to fossil fuel use. The renewable energy resources that have been at the forefront of development and utilization include among others, hydropower, solar power and wind power. In particular, there has been growing interest and awareness in wind power throughout the world, and in Alberta as a source of electricity. According to the Canadian Wind Energy Association, “Wind power is the fastest growing source of electricity in the world and is among the fastest growing renewable energy technologies in the world, increasing by approximately 32% a year globally over the last five years, and across Canada, electricity generated from wind is powering homes and businesses in a clean, reliable and efficient manner.”1 Wind power is markedly important in Alberta as it currently holds the largest installed wind capacity of any province in Canada and through developments indicating that this province is one of the leaders in the wind industry in this country, has shown the potential for increased utilization in the future. The situation in Alberta in relation to wind power is inimitable for various reasons, such as the availability of the resource, particularly in the southwestern region of the province, Alberta’s energy intensive economy and greenhouse gas intensive industry, with its associated environmental impacts, and the deregulated electricity market. With continued economic development at a flourishing pace and the abundance and expansion of non-renewable energy sources, particularly in the oil sands area, and the associated environmental impacts this will have, Alberta may see the need to examine alternative future energy developments, such as wind power, that will be less environmentally detrimental than those currently being utilized. Among the rationales associated with choosing to utilize wind power include the many benefits, such as economic, environmental, and societal that it affords, as well as the reality of the environmental harm caused by the utilization of conventional energy sources and the resulting significance of the 1

compounding effects of their escalating utilization and the need for more environmentally friendly and non-polluting energy sources as a future alternative. In order to gauge the potential and feasibility for wind power in Alberta becoming a reliable source for energy production, we need to take a look at the drivers for the utilization of wind power and the benefits as well as impediments associated with this development. This paper will focus on evaluating the development and implementation of wind power in Alberta, through the analysis of issues such as the costs and technologies associated with this energy source, benefits and drawbacks of wind power, incentives to implement wind power, and the various players, including government, consumers, and producers in the advancement of this energy source, all of which will assist in a greater understanding of the viability of wind power in Alberta and the challenges and opportunities that will come with the development, implementation, and commercialization of an energy source which has increasingly gained much attention throughout the world.

Wind Energy in Alberta When we talk about wind power we are most often referring to the employment of wind in the generation of electricity. This occurs through the use of wind turbines, which are tall towers with large blades mounted on them that rotate due to the wind’s movement, which in turn rotates a generator that produces electricity. Wind generated electricity is a form of renewable energy technology that utilizes a sustainable, non-exhaustible resource. Wind energy has been categorized under terms such as green power and low-impact renewable energy (LIRE). According to a paper, describing low-impact renewable energy sources, written by Pape-Salmon, Dogterom, Wieler and Anielski for the Pembina Institute, low-impact renewable energy costs are predictable and stable because the resources are available and non-depletable and low-impact renewable energy utilization does not negatively impact on human health and environmental integrity. Salmon et al. go on to state that introducing low-impact renewable energy into the energy system can reduce existing environmental and health impacts by 2

displacing polluting sources of energy such as fossil fuels.2 Thus, it is evident that wind energy, as a renewable energy source has valuable and distinctive characteristics that differentiates it from traditional sources of energy, such as coal or natural gas. There are several factors that make it possible for wind energy to become established in Alberta. First of all, in order for energy production from a particular source to become feasible, there must exist a substantial availability of that resource in order to continually fuel energy production. In Alberta, and throughout Canada, a substantial wind resource is present. Alberta stands apart from the other provinces in that it leads the way in wind power with a current capacity of 269 megawatts, compared to the next highest capacity in Quebec of 113 megawatts, and has the greatest number of wind farms in the country with currently thirteen operating, compared to Ontario, with the next highest number of wind farms, currently operating six3 (see Table 1). In addition, Alberta has “pioneered the field as its energy firms took advantage of 1990s provincial policy that encouraged independent power generation.”4 Alberta has been at the forefront of wind energy developments. The very first commercial wind farm in Canada was built in Alberta near the town of Cowley, which is located in the south of the province, in a region famous for its strong, steady winds.5 Alberta, especially in the south has a large portion of the installed capacity in the country, and has potential for even more development, particularly in the southwest. The confirmation of this utilization of wind energy in Alberta is evidenced by the wind turbines that dot the landscape in particular areas of this province. It is clear that Alberta does not lack the wind resources necessary for the implementation of wind energy as a renewable energy source for the generation of electricity, and although in 1998, wind power generated less the two percent of Alberta’s total electricity supply, their exists enormous potential for the province in expanding the use of wind energy and the proportion of wind energy that constitute Alberta’s energy mix.6 From an environmental standpoint, Alberta is unique in that its economy relies heavily on the energy industry, due to the province’s abundance of natural resources and what inevitably becomes coupled with this, are the environmental impacts. This is not a new phenomenon, but with the growing 3

Alberta economy, as well as economic growth throughout the world, issues relating to the environmental ruin caused by such escalating growth, including the growing concern about global climate change and green house gas emissions, and the need for sustainable development, have indicated that this could necessitate and help further the development of potential low-impact renewable energy sources, including wind power. Canada’s commitment under the Kyoto Protocol, to reduce green house gas emissions to 6% below 1990 levels by 20127, is evidence of the country’s willingness to contribute and do their part in the reduction of green house gases, which means that Alberta, with its greenhouse gas intensive industry, could find itself in a position where it must consider alternatives to the polluting and environmentally damaging conventional energy sources currently being utilized. Environmental concerns in today’s society from consumers and people in general throughout the province and worldwide, about the environmental ills posed by the use of combusting dirtier fossil fuels, such as coal, and the growing interest from energy providers in developing and supplying wind generated electricity, has transformed Alberta into fertile ground for initial developments in this industry and the potential for future growth. Alberta’s unique situation in the implementation of electricity industry restructuring has created an environment for potential new electricity technologies and providers to integrate into the existing system. Without the initiation towards restructuring and deregulation that took place, the Alberta electricity market would have continued to be a significant barrier for those attempting to develop and commercialize wind generated electricity. With one of the general goals of regulation being to introduce competitive conditions into the generation segment of the industry, coupled with initiatives to help reduce the market power of the three major players in the industry, entry into this previously inaccessible segment is now being opened to new investments and entrants, which are now determined by the market. Therefore, with increased competition on the supply side of the market, the potential for wind energy in Alberta to continue producing more electricity output in the future is definitely promising, as new energy producers consider providing more environmentally friendly alternatives, in 4

light of growing environmental concerns. In regards to the retail side of the market, implementing competitive conditions would in effect give customers more decision-making power in regards to the supplier of their electricity, and to the benefit of the wind industry, the power to choose an environmentally healthy, sustainable, low-impact renewable wind energy source. With conditions in Alberta ripe for the growth of the wind industry, other considerations need to be addressed, such as the associated costs and technologies, associated with this energy resource development, the benefits, as well as barriers to this development, the regulatory and market incentives for eliminating these barriers, and the role of government, consumers and producers, in order to more fully realize the viability and potential in the future, for wind power playing a fundamental role in energy production.

Cost and Technologies In any venture in the development of new energy technologies, costs are crucial in the evaluation and consideration of the potential and feasibility for implementing a new project. For developers in the wind industry, an analysis of costs would incorporate start-up costs and capital expenditures, installation costs, and generation costs. These costs can also be utilized in a comparison of the cost structures between different renewable energy sources or in comparison with the conventional non-renewable energy sources currently employed. For renewable energy technologies, the greater part of the costs are concentrated up front in the form of high capital overheads. This is the case for the wind energy industry, with high capital costs, but with offsetting low costs in maintenance and operations, and zero fuel costs, as opposed to conventional energy production with low capital costs, high operating costs, and volatile and ever increasing fuel costs. Although these high capital expenditures are an issue for wind power development, they are decreasing due to improved manufacturing techniques, market development and larger technologies with improved economies of scale.8 According to the American Wind Energy Association, over the last 20 5

years, the cost of electricity from utility-scale wind systems has dropped by more than 80%.9 Maintenance and operating costs comprise of variable costs and fixed annual costs that are positively correlated with the amount of electricity generated, and due to improved economies of scale through larger developments, the operating costs per unit of energy produced is declining.10 The costs in the wind energy industry in regards to generation and installation are most often expressed in terms of cost per unit of energy, and since we are dealing with the production of electricity, these costs are expressed in cents per kilowatt-hour (kWh) of electricity produced or dollars per megawatt-hour (MWh). In 2001, the cost of wind generated electricity in Canada ranged between approximately 6.5 cents to 10 cents per kilowatt-hour, which is projected to fall to 4.5 cents per kilowatt-hour by the year 2025 (see Table 2). In addition, the installed cost for large-scale wind farms is approximately $1500 per kilowatt.11 In comparison to other low impact renewable energy sources, such as solar energy or hydroelectricity, Part-Salmon et al. report that wind power offers the largest potential and for a reasonably cost-effective price and has recently proven to be cost competitive with conventional sources on a large energy production scale. According to information provided by Re-Energy.ca, “Commercial wind energy is one of the most economical sources of new electricity available today. Wind turbines can be set up quickly and cheaply compared with building new coal-fired generating stations or hydroelectric facilities. Modern wind generating equipment is efficient, highly reliable, and becoming cheaper to purchase.”12 In addition, once a wind turbine has been set up, the cost of wind power is fairly steady over time and is not subject to the volatility and fluctuations of fuel prices, which impinge on conventional energy sources. Thus, in conjunction with the rising and fluctuating costs associated with conventional sources of energy and the gradual reduction in costs associated with wind energy, through beneficial and increasing technological improvements and the growth of the industry in general, wind power has increasingly become seen as a more viable and cost competitive source of energy. In regards to wind power technology, Canada does not have any technology of its own, but advances in wind power technology in other parts of the world, especially through wind technology 6

leaders in Europe, have led to improvements in this field. Alberta and the rest of the country has been importing wind machines from European industry leaders, including wind turbines from Denmark-based Vestas Wind Systems A/S, the world leader in wind turbine manufacturing, with a dominant 34% market share.13 Although Canada is lagging behind others in the development of wind power technology, as the wind industry continues to experience growth and flourishes in the future, the capability to develop technologies within our own borders may be viable. In taking steps towards this goal, a blade manufacturing company was constructed in Ontario, although the majority of the manufacturing taking place is being sent to the United States for installation. Regardless, this development and those in the future will help initiate and open up the possibilities for wind power technologies in Canada, which would help facilitate further the expansion of the wind industry in Alberta and throughout the rest of the country. In a recent and exceptionally significant development in aiding the growth of the wind energy industry throughout the country, Canada has for the first time mapped the country’s entire wind power potential through the Wind Energy Atlas. This database of high-resolution wind statistics, designed by scientists at Environmental Canada’s Meteorological Service, generates a detailed, color-coded picture of wind patterns, through the use of sophisticated computer modeling. In a newspaper article in the Edmonton Journal titled, “Atlas maps where the wind blows best,” the chief executive of GE Energy’s wind unit has said that “mapping is Step 1 when a country looks seriously at wind power.” Prior to this development, the ability for wind energy project developers to site suitable locations for the generation of wind power was an issue, which these developers believe will no longer be a problem to contend with.14 This development, which cost $2 million and took 100,000 hours to design, demonstrates the growing interest in wind energy throughout Canada, and the potential for developments such as these to assist in the expansion of the wind industry. Part of the dilemma with these developments, are the high costs associated with them, which may potentially inhibit the growth of an infant industry, which cannot expand unless these developments that are crucial for wind energy developers, are undertaken. 7

Therefore, this development of mapping the country’s wind potential is an indication of where the country is headed in regards to wind power technologies.

Benefits of Wind Energy There are an abundance of benefits associated with wind power, that concern the entire society including environmental and economic, which taken together could give the industry and producers an advantage in differentiating their product from conventional sources of energy currently being employed, and will help make wind power a valuable addition to the electricity mix in Alberta and energy portfolio in the country. The benefits attached to wind power are largely and most significantly associated with its environmental advantage. In light of the global concern over environmental preservation and Alberta’s significant contributions to environmental harm through emissions, the environmental merits of wind energy is of particular importance in this province. First of all, wind energy does not produce air pollution and is considered a clean source of energy, compared to conventional sources of energy production, such as coal powered electricity generation, which are particularly damaging in Alberta with the energy intensive economy that contributes significantly to emissions and can have potentially damaging impacts to our climate. The use of wind energy can help benefit the environment by displacing the use of polluting non-renewable energy sources, such as fossil fuels. As an illustration, according to information provided by the American Wind Energy Association, “if wind energy were to generate 20% of the United State’s electricity, which is considered a realistic and achievable goal, it could displace more than a third of the emissions from coal-fired power plants, or all of radioactive waste and water pollution from nuclear power plants.”15 Wind energy is environmentally benign when compared to conventional energy technologies that produce greenhouse gases, acid rain precursors, and ground level ozone, or smog. In addition, the ecological impact of large wind turbines is negligible in

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comparison to an open pit coal mine, or a reservoir.16 Because wind energy is also inexhaustible and a sustainable resource, there is no danger or concern of depleting this natural resource. In a paper written by McCulloch, Raynolds, and Laurie, for the Pembina Institute, they discuss a “study undertaken to assess and quantify the potential environmental benefits provided by wind power,” by comparing the life-cycle emissions produced by wind generated electricity with emissions produced by the use of coal and natural gas. They concluded that “the potential air emissions created through the life of all three systems compared in this study show that wind power is by far the most environmentally benign option of the three.”17 Therefore, in regards to the benefits imposed by wind power to the environment, it is clear that there is added value when it comes to wind power both in the minimal harm contributed to the environment and the potential to deter and offset the use of more damaging and polluting conventional sources of energy. Wind energy is considered to be one of the most economical sources of new large-scale electricity generation.18 As mentioned earlier, the economics of wind power conveys certain benefits on those considering the development of wind power, such as zero fuel costs, the cost competitiveness compared with conventional sources on a large production scale, the cost stability over time due to zero fuel costs, and the continual decline in costs as technology and advancements in this industry continues to develop and economies of scale are reached. In addition to these benefits, wind has a strong correlation to load requirement, which means that the capacity tends to expand with demand, and cost savings are thus incurred. Wind energy peaks relatively at the same time in which demand for wind energy increases, including during the winter, on windy days, and during the daytime. Another economic benefit associated with wind power is related to its “energy payback time,” which is the measure of the net energy value of a wind turbine, or rather the amount of operation time to generate the amount of electricity that was required for its manufacture and construction.19 According to the American Wind Energy Association, various studies have concluded that wind energy has one of the shortest energy payback times of any energy technology, and that a wind turbine will normally take only 9

a few months, about 3-8 depending on the average wind speed at the site, to “pay back” the energy needed for its development, installation and retirement.20 In regards to the benefits provided by wind power to society, in addition to providing a cleaner and more environmentally friendly energy source, the development and utilization of wind power provides economic benefits including the creation of jobs, investment in the local economy, lease payments to land owners, and overall rural economic development. According to the Canadian Wind Energy Association, a 1.5-megawatt wind turbine creates $1.5 million in investment, 2.5 job years of direct employment, and 8 job years of total employment. If we take a look at the case of Pincher Creek in Alberta, which provides 30% of Canada’s wind capacity, the economic benefits that accompanied the development of wind energy in this small, rural community included the addition of $10 million directly into the local economy, $900,000 in taxes to the municipality, lease payments to landowners of $3000 per wind turbine, and a boost to the local tourism industry.21 Thus, it is evident that the economic impacts to the local economy in Alberta have been considerable, and with the potential for future developments in this province and growth in the industry, there is sure to be much greater remuneration associated with wind energy. In addition, the environmental advantage accompanying wind energy, will make it an attractive addition to Alberta’s power mix, and that of the nation’s, especially in light of the environmental damage associated with conventional energy sources, and the rising prices of various fossil fuels, including natural gas, as supplies continue to be tight.

Barriers and Incentives Considering that the environmental benefits associated with wind energy are crucial to its advantage over other conventional energy sources, it is not surprising that one of the most significant barriers to the implementation of wind power is the lack of pricing for environmental and human health externalities. Wind power is environmentally benign, compared to the environmental damage and health impacts caused by energy production and consumption of conventional energy technologies. But these 10

externalities, whether positive or negative are not factored into the relative prices of these different energy technologies and thus the environmental impacts such as green house gas emissions, local air pollutants and toxic wastes, produced through conventional energy sources, such as coal powered plants, are not reflected in their price. Rather, society as a whole bares these costs through government programs that attempt to deal with these impacts, while the inability to factor in the positive externalities associated with wind power, means that there are no financial rewards or value added from the production and consumption of wind energy. In regards to environmental and social stressors of wind energy, there exists potential noise and visual impacts, particularly if wind farms are located in urban centers, although several implementations have been successful in urban areas. In addition, direct impacts on the landscape may be considered a barrier, although with appropriate siting and minimal road construction, wind farms have very low impacts on the productive characteristics of the land22 and siting in areas of agricultural use, do not hinder productivity. In addition to the lack of pricing for externalities, another financial barrier to the implementation of wind power is the difficulty of financing these capital-intensive projects. The lack of access to capital for investments in wind energy technologies can leave potential wind energy producers without the sufficient capital to fund new developments. There also exist interconnection and operational barriers, which consist of technical, financial, and operational requirements in order for wind energy to connect to the grid that ultimately impacts the cost of developing new wind energy. For smaller scale wind production technologies, the fixed interconnection costs could place a larger burden on those generators that bring in less revenue. A technical consideration regarding wind power is its intermittency, which equates to the inability to produce power at all times, although this intermittency can be moderated by integrating wind energy facilities into an electric grid with other fuel facilities or by providing storage for off-grid applications.23 In addition to these barriers are informational impediments that affect the decision making of all those involved or affected by wind energy technologies, including utilities and retailers, energy 11

consumers, investors, as well as other stakeholders. More specifically there exists a lack of awareness on the part of consumers in regards to the availability of wind power as a cost-effective option, as suppliers are relatively few and do not engage in large-scale marketing initiatives. There also exists a lack of information regarding the potential suppliers available to customers. As well, there exists a lack of information regarding the resource itself and its availability, which is crucial for the financial success of prospective wind energy developers, which until recently, as mentioned earlier, will no longer act as a barrier, since the development of the Wind Energy Atlas will help wind energy developers better access the wind capacity available at potential sites. It is possible for barriers such as those mentioned as well as others, to play a less significant role and to be factored out in decisions made by various stakeholders to implement, produce, and utilize wind energy, through various regulatory and market incentives. Particularly in Canada, where the technology and marketing of wind energy is lagging behind industry leaders in Europe, increased government funding to help provide information on wind technology to raise awareness, to help research and development programs, as well as the commercialization of wind energy technologies can assist in breaking down informational and technical barriers. The Canadian federal government procurement program is the strongest in North America and can aid in proving wind energy reliability and improve consumer confidence in the technologies.24 In Alberta, the province’s Action Plan on Climate Change, will help to increase investment in wind energy, as well as other renewable energy sources.25 There are also various energy policies and programs in place in Canada which will assist in the growth of the wind energy industry and reduction of various barriers that inhibit the industry’s growth. The government in 2001, announced in the budget, the Wind Power Production Initiative, which is intended to assist various stakeholders in gaining experience in the wind industry, with the provision of $260 million of financial support for the installation of 1,000 megawatts of new capacity over the next five years.26 Particular fiscal mechanisms that would be directed at producers and consumers of wind energy, include subsidies, low-interest loans, loan guarantees, and special tax treatment that will help alleviate the high capital 12

costs, that act as a barrier to wind energy development. As well as these initiatives, increasing consumer awareness and choices, could help reduce some of the informational barriers that prevent the optimal utilization and consumption of wind generated power. The ultimate barrier of the lack of accountability for the environmental and social costs of energy technologies could be tackled through a variety of legislated and fiscal mechanisms that have been the topic of various discussions on this issue including, environmental taxes that peg a price on emissions, the legislation of an allowance or quota for emissions, or the creation of a credit-trading mechanism to work alongside the allowance mechanism.27 These as well as other initiatives, that include various supportive policies, whether or not they will all accomplish their goals, are at least suggestive of the willingness of the government to help further the growth of the wind industry in Canada and in Alberta, and is a step in the right direction towards the elimination of some of the barriers faced by wind energy technologies in Alberta, and will ultimately assist in enabling its future growth.

Key Players In any market the key players are buyers and sellers, as well as the government, in varying degrees of involvement. When it comes to energy markets you can count on governments or at least expect to count on them to play an important role, especially in the promotion and expansion of the renewable energy industry, which has made significant gains and according to Part-Salmon et al., has expanded significantly since the 1970’s, with an annual turnover of about USD$7 billion and is expected to grow to USD$82 billion by the year 2010. While this seems promising, developments in Alberta and the rest of the country in wind power have lagged behind innovative and successful leaders at the forefront of this industry, including Germany which leads the world in wind power capacity with 8,753 megawatts at the end of 2001 and Denmark, which “has 11 times the installed wind power capacity of Canada, equivalent to over 2,400 megawatts in 2001 as a consequence of supportive programs and fiscal measures, producing 18 per cent of the domestic electricity supply”28 (see Table 3). And according to 13

Part-Salmon et al., the wind industry’s global statistics show that Canada has less than one percent of installed wind capacity in the world. Therefore, the interactions between the producers and consumers and especially the level and type of involvement of the government, will help shape the current and future path of the wind energy industry in Alberta. As mentioned previously, the government’s involvement in the form of policies and programs designed to facilitate the development, utilization, commercialization, and ultimately the growth of the industry, is imperative and extremely significant. In addition the Canadian Wind Energy Association helps support the development of wind energy in Canada with the goal of encouraging investment in wind energy for 10,000 megawatts by 2010, providing 5% of Canada’s electricity.29 These involvements not only help to aid producers, but consumers as well, as these initiatives help to inform prospective energy consumers of wind generated power, and helps to bridge the gap between suppliers of wind energy and the ultimate end-users. Although this is the case, consumers play a huge role because they ultimately make the decision of whether or not to choose wind-generated electricity. If the potential for consumer demand exists and continues to grow, then the future market for wind energy technologies may experience substantial growth. In a paper produced by the American Wind Energy Association, which summarizes various public opinion surveys throughout the world on issues including wind energy, they show that in the Canadian poll, “82% of respondents would be interested in buying windgenerated electricity if it were available for “about the same price” as electricity from other sources, and 63% said they would “definitely” or “probably” pay more to purchase wind power.”30 Therefore with wind enjoying strong endorsement with consumers, which stem from the growing concern for our environment and the increased knowledge concerning the environmental and other benefits associated with wind energy, the potential exists on the demand side for this energy source. A major concern now and in the future is whether this consumer interest in wind power will translate into increased purchases and whether new wind energy projects will develop in response to this.

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The Future In the past few years, wind energy production in Canada has grown to a current installed capacity of 440MW, with Alberta taking a lead role in the expansion of a relatively new, yet important industry in this country. Although this is a significant development and is indicative of the interest in wind energy in the future, Alberta, and the rest of the country still has vast untapped wind resources available. According to the Canadian Wind Energy Association, there is the potential in Canada for wind energy to meet a full 20% of all our electricity needs. There is no doubt, that the future potential for wind energy is looking bright and is only going to grow, with new improvements in technologies and developments, incentives and government policies and initiatives to boost development of new wind energy projects, growing interest from consumers due to heightened environmental concerns and valued benefits associated with wind energy, and the opportunity for the Alberta government to become a leader in facilitating the development of wind power. The benefits associated with wind energy are indisputable and with continued government involvement on a national and provincial scale in encouraging present and future developments in Alberta, there seems to exist the motivations and attention needed to precipitate the continued growth of this industry. What still remains uncertain, especially in the long run, is not whether wind energy has the capability to provide the province and the country with its energy needs, but whether or not on a largescale, people are going to shift from conventional sources of energy to wind power, especially in a province that has a long history of dependence on fossil fuels. It is reasonable to believe that as supplies of conventional energy sources may begin to wane, and as the wind industry continues to grow, dependence on wind energy technologies may no longer be a novel idea, but a reality. With such heavy reliance on conventional energy sources, it is hard to imagine a shift to wind energy and other renewable energy sources, but in the future, whether in 20 years or 100 years, Alberta may begin to rely on wind energy with increasing dependence.

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REFERENCES: 1, 3, 16, 21, 29. Canadian Wind Energy Association. 2, 8, 10, 11, 22-28. Part-Salmon, A., Dogterom, J., Wieler, C., Anielski, M. (Februaury 2003) for the Pembina Institute. “Low Impact Renewable Energy Policy in Canada: Strengths, Gaps and a Path Forward.” [Online]. Available from: The Pembina Institute for Appropriate Development. 4. Jaremko, G. (2004, November 26). “Competition blown away: Two Alberta firms win big contracts for windmills in Ontario.” The Edmonton Journal, p.F1 and F7. 5, 12, 18. Re-Energy.Ca. < http://www.re-energy.ca/t_windenergy.shtml> 6, 17. McCulloch, M., Raynolds, M., Laurie, M. (February 2000) for the Pembina Institute. “Life-Cyle Value of A Wind Turbine: Alberta, Canada.” [Online]. Available from: The Pembina Institute for Appropriate Development. 7. Part-Salmon, A. (March 2001) for the Pembina Institute. “A Smart Electricity Policy for Alberta: Enhancing the Alberta Advantage.” [Online]. Available from: The Pembina Institute for Appropriate Development. < http://www.pembina.org/publications_item.asp?id=33> 9, 15, 19, 20. American Wind Energy Association. (1999) ”The Most Frequently Asked Questions About Wind Energy.” [Online]. Available from: American Wind Energy Association. 13. Berman, D. (2004, November 30). “Gale Force Winds of Competition.” National Post, p.IN1 and IN2 14. Van Praet, N. (2004, October 19). “Atlas maps where the wind blows best.” The Edmonton Journal, p.F1 and F6. 30. Gray, T. O., for the American Wind Energy Association. “Wind Energy – Views on the Environment: Clean and Green.”[Online]. Available form: The American Wind Energy Association.

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TABLES Table 1: Wind Farms in Alberta Wind Farm/Site

Date Installed

Total Nameplate Company Power (kW)

Turbines

Alberta Nov-97 Castle River Wind Farm

2000 2001 1993/12

Cowley Ridge Wind Farm 2000/09

1x Vestas V44-600 (600 kW) 15x Vestas V47-660 (660 kW) 44x Vestas V47-660 (660 kW) 52x US Windpower (Kenetech) 33M-VS (360 kW) 5x US Windpower (Kenetech) 33M-VS (375 kW)

39,540

Vision Quest Windelectric

21,400

Canadian Hydro Developers, Inc

Canadian Hydro Developers, Inc

Cowley Ridge North Wind Farm

2001/10

15x Nordex (1,300 kW)

19,500

Lundbreck

2001/12

1x Enercon E40 (600kW)

600

McBride Lake

Jun, 2003

114x 660

75,240

McBride Lake East

Dec, 2001

1x 660

660

Magrath

2004/09

20 x 1.5MW GE Wind

30,000

Suncor, Enbridge, EHN

Sinnot Wind Farm

2001/11

5x Nordex (1,300 kW)

6,500

Canadian Hydro Developers, Inc

Summerview

Apr. 2002

1x 1.8MW

1,800

Vision Quest Windelectric

Summerview

Sept 2004

38x 1.8MW Vestas

6800

Vision Quest Windelectric

Tallon Energy Project

Jan. 2004

1 x Lagerway 750 kW

750

Tallon Energy

3-Nov-97

1x 600

12-Nov-98

1x 600

13-Nov-98

1x 600

20-Jun-00

1x 660

22-Dec-01

1x 660

22-Jan-02

1x 660

2001/09

1x NEG-Micon (900 kW)

Waterton Wind Turbines

Weather Dancer I

3,780

900

Lundbreck Developments Joint Venture A ENMAX/Vision Quest Vision Quest Windelectric

Vision Quest Windelectric

Epcor/Peigan Nation Reserve Source: CanWEA

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Table 2: Cost of Low-Impact Renewable Energy Supplies

Source: Part-Salmon et al. Paper Table 3: Comparison of Wind Power Capacity at the end of 2001 (MW)

Source: Part-Salmon et al. Paper

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