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Quebec Wind Industry To See $10B Investment by 2015

|Includes: TransAlta Corporation (TAC)

By 2015 the wind industry in Quebec, Canada, will develop 4,000 megawatts (MW) of generating capacity, resulting in $10 billion in new investment, thousands of new jobs and other benefits, according to a new study. The survey of projected economic impacts, commissioned by the Canadian Wind Energy Association (CanWEA), determined that wind farm construction will create more than 37,000 jobs between 2005 and 2015. More precisely 5,210 jobs per year would be created between 2011 and 2015. In addition, nearly 1,400 permanent wind jobs will be created in the operation and maintenance of the installations. Finally, by 2015, landowners and municipalities will stand to earn up to $25 million in annual royalties from these wind energy developments.

Currently Quebec has 663 MW of installed wind energy capacity, generating enough electricity to satisfy the needs of approximately 230, 000 homes. The study released today also quantifies the economic benefits of the wind energy industry in Quebec for the period 2005-2010.

Some of the players in Quebec's wind industry include:

  • Renewable Energy Systems Americas Inc., which recently acquired a contrator specializing in wind farm construction.
  • Pioneer Power Solutions, Inc. (OTCBB: PPSI), which acquired Quebec wind turbine makerAAER Inc. in June.
  • REpower Systems AG (RPW.DE), which is developing more than 900 MW of wind power in the province.
  • TransAlta Corporation (TSX: TA; NYSE: TAC), which acquired power generation company Canadian Hydro.

CanWEA advocates that Quebec continue to develop wind power beyond 2015 by adding an additional 8,000 MW by 2025. This new phase would generate $25 million in investments and would create 90,000 jobs during the construction phase, or more than 9,140 jobs per year between 2016 and 2025 as well as 4,500 permanent operations and maintenance jobs by 2025. The economic benefits for landowners and municipalities would climb to $95 million per year.

Disclosure: no positions