Maxed out power systems may temper the blistering growth of the previous period
New York, NY (PRWEB) October 16, 2014
In the five years to 2014, the Canadian Wind Turbine Manufacturing industry has rapidly expanded. Canada is well suited for generating wind-powered electricity with large tracts of land with abundant wind resources. According to IBISWorld Industry Analyst Stephen Morea, “Installed wind power capacity in Canada has grown substantially during the past five years due to federal and provincial government incentives designed to reduce greenhouse gases and promote clean energy.” These incentives include tax deductions, feed-in-tariffs, governmental guarantees to purchase wind electricity and numerous subsidies associated with equipment cost and operation. As a result, in 2011 Canada had an estimated 3,094 wind turbines operating on 152 wind farms. By August 2014, there were more than 6,700 wind turbines installed or approved for installation in Ontario alone. Consequently, revenue for the Wind Turbine Manufacturing industry is expected to increase at an average annual rate of 9.2% to $5.8 billion in the five years to 2014, including an anticipated 7.1% growth in 2014 alone. Furthermore, with many new projects still in the pipeline, this upward trend should continue for the next few years.
However, the blistering rate of industry expansion may be tempered in the five years to 2019 because of several constraining factors. Ontario, the country's largest consumer of wind-generated electricity is approaching its limit for accepting additional electrical power, due to limitations in its existing power grid. The province has already reduced the subsidy amount associated with its feed-in-tariff program and has actually begun paying wind farms not to produce electricity. In addition, wind power projects in the province of Alberta continue to be sluggish due to the low price and abundant availability of natural gas, a competing source of electricity generation. “An overall upswing in revenue is expected, but these inhibiting factors may mitigate substantial private investments needed to finance many expensive new wind energy projects,” says Morea. Consequently, the Wind Turbine Manufacturing industry is expected to increase in the five years to 2019.
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IBISWorld industry Report Key Topics
The Wind Turbine Manufacturing industry researches, develops and manufactures wind turbines for residential, industrial and commercial use.
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