April 2019

THE SECRET IS OUT

WIND IS INBuilding a stronger, cleaner and affordable energy system.

Wind energy is one of the fastest growing major sources of new electricity around the world, with installations of 51,300 megawatts (MW) of new clean, reliable wind power during 2018. More than 90 countries have installed wind energy facilities, with the global leaders being China, the U.S., Germany, India, Spain, France, Brazil, Canada, the U.K. and Italy.1

Wind energy is generating clean electricity, new jobs and economic development opportunities in communities across the country.

Canada is a global leader in wind energy – 8th in the world in installed capacity.

As the industry has grown, wind energy costs have fallen – 69 per cent since 2009 (Lazard 12.0) – making wind energy one of the lowest-cost electricity generating technologies available today.

More wind energy has been built in Canada over the last decade than any other form of electricity generation, with installed capacity growing by an average of 20 per cent per year between 2008 and 2018. Wind energy currently supplies approximately six per cent of Canada’s electricity demand, generating enough power to meet the needs of approximately 3.3 million Canadian homes. There are 299 wind farms operating from coast to coast, including projects in two of the three northern territories.

WIND POWER – FOR CLEANER, AFFORDABLE ENERGY

1 All global wind energy statistics are from Global Wind Statistics 2018.

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• Current installed capacity: 12,816 MW

• Wind Farms: 299

• Wind Turbines: 6,596

• Current percentage of Canada’s electricity demand met by wind: ~6

• Wind energy is producing enough electricity to power approximately 3.3 million Canadian homes

• Global ranking for total installed capacity: 8

• Average amount of wind energy installed annually in Canada between 2008 and 2018: ~1,000 MW for an average annual growth rate of 20 per cent

WIND BY THE NUMBERS ACROSS CANADA2

2 Sources: percentage of electricity demand – StatsCan 2017; all other figures – CanWEA December 2018.

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Canada expects to add approximately 1,000 MW of new wind energy capacity in 2019• In 2018, six wind energy projects were powered up, adding

566 MW of installed capacity.

• Two of the six new wind farms have both community and First Nations ownership stakes.

• The average annual growth rate for new wind energy capacity in Canada since 2008 has been 20 per cent.

STRONG WIND ENERGY GROWTH IN CANADA…

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Did you know? • The world’s total installed wind energy capacity at the end of

2018 was almost 591,000 MW.

• Denmark now generates more than 50 per cent of its electricity from wind turbines (REN21).

• In the U.S., six states now generate 20 per cent or more of their electricity using wind energy.

• Wind energy prices continue to decrease – a 2018 U.S. analysis (Lazard 12.0) found a 69 per cent price decline since 2009. This means that wind energy will be a serious contender any time there is a need for new power generation.

• According to the Bloomberg New Energy Outlook 2018, by 2050 wind and solar technology are expected to provide almost 50 per cent of total electricity globally.

What is a megawatt (MW)?Electricity is measured in units of power called “watts”. LED light bulbs for lamps use six to nine watts. Because watts are very small units, the electricity sector uses the term megawatt (MW) – or one million watts – to describe the maximum amount of electricity that can be produced by a wind turbine. A wind turbine with a rated capacity of two MW will typically produce enough electricity to power about 500 average Canadian homes for one year.

…AND SUBSTANTIAL GROWTH AROUND THE WORLD

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PARTS OF A WIND TURBINE

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A BLADESCatch wind and use the energy to turn the low-speed shaft.

B LOW-SPEED SHAFTSpins along with the rotor and turns the high-speed shaft using a gear system.

C HIGH-SPEED SHAFTTransfers the spin of the low-speed shaft to the generator at a much higher rotation per minute (rpm), running as close to 1,800 rpm as possible.

D ANEMOMETERMeasures the speed of the wind and transmits this data to the controller.

E WIND VANEMeasures the wind’s direction and communicates this to the yaw drive.

F CONTROLLERStarts and stops the turbine so it only runs at operational wind speeds – between 12 and 88 km/h, generally.

G GENERATORProduces electricity using the turning motion of the high-speed shaft and electromagnetic induction.

H YAW DRIVECorrectly orients the turbine with respect to the wind using data from the wind vane.

I BRAKEStops the rotor in case of emergency or high winds.

Source: Save on Energy: www.saveonenergy.com/how-wind-turbines-work

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WIND FARMSGENERATEELECTRICITY

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Substation increases the electricity voltage for transmission over long distances

Transmission of the electricity to local electricity distribution companies, where it is delivered to homes, businesses, farms, etc.

Rotating generator converts kinetic energy of the wind into electrical energy

Transformer increases voltage for transmission to substation

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HOW AWIND TURBINEWORKSTurbines work on the same principle that allows airplanes to fly. The wind doesn’t push the blades, but passes over them. The resulting pressure difference between the upper and lower surfaces creates lift, which causes the rotor to turn. The blades typically start to turn when the wind speed reaches approximately 12 km/h and shut down if winds reach approximately 88 km/h. At these wind speeds, turbines will produce electricity between 70 and 90 per cent of the time. How much they generate at any given point depends on the wind speed.

As the blades spin, the kinetic energy of the wind is converted into mechanical energy, which is transmitted through a drive shaft to an electrical generator in the nacelle. The resulting current travels via underground cables to a substation, where it is converted to a higher voltage for the larger electricity grid. From there, it’s delivered to the electric utility.

Wind farms are designed to last 20 years or longer and modern turbines require very little maintenance.

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Wind energy is now the lowest-cost option for new electricity generation in Canada. And more good news – wind energy costs continue to fall, offering an attractive electricity source to provinces seeking to clean and diversify their electricity systems.

• In December 2017, a competitive electricity-supply auction in Alberta yielded the lowest-ever rate paid for wind energy in the country, a weighted average of $37 per megawatt hour.

• Similarly, in October 2018, a competitive procurement in Saskatchewan resulted in an average bid price of $42 per megawatt hour, with the winning bid coming in below $35 per megawatt hour.

• A November 2018 report from the U.S. investment firm Lazard found that in the United States, wind energy is the lowest cost option for any new supply without any subsidies. Between 2009-2018, wind energy prices in the U.S. decreased by 69 per cent.

• Looking to the future, a Bloomberg 2017 report forecasts that world wind energy costs between 2017-2040 will decrease by 47 per cent.

WIND IS COST-COMPETITIVE

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• The fuel that turns the turbine blades is free; this means that once a wind farm is built, the price of electricity it produces is set and remains at that level for the entire life of the wind farm.

• The cost to build and operate wind energy facilities continues to decline and significant efficiency gains are being made through ongoing evolution in wind turbine technology and operating processes.

• Wind projects have short construction periods and can be deployed quickly with positive impacts delivered to local communities.

• Many traditional sources of energy are more likely to experience price volatility, so the long-term cost-certainty and stabilizing effect of electricity rates from wind farms provide important protection for consumers.

WHAT MAKES WIND POWER ECONOMICAL?

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As demand for clean, low-cost and flexible electricity supply grows, Canada will increase its reliance on wind energy. The good news is that wind power can readily be integrated into the electricity grid at levels much higher than what is installed today.

System operators have several options for keeping our evolving electricity mix reliable – like improved wind energy forecasting, adding new electricity transmission, enhanced electricity demand forecasting, or better alignment of variable generation like wind with flexible generation such as hydropower or energy storage technologies.

Larger wind turbines and increased digitalization have also steadily increased capacity factors for wind energy, meaning they are now producing more energy, more of the time.

Technology changes are also allowing wind energy to provide many of the ancillary services that help grid operators maintain reliability in the case of system imbalances or emergencies – services wind energy can often supply to the grid more quickly and cost-effectively than conventional generation.

A RELIABLE POWER PARTNER

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Levels of reliable wind integration are going up all over the world.

Did You Know?The Pan-Canadian Wind Integration Study demonstrates that Canada can source more than one-third of its electricity from wind energy without compromising grid reliability – while capturing wind energy’s economic and environmental benefits.

THE WORLD IS TURNING TO WIND ENERGY

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2017 World Leaders on Wind Energy Integration

To learn more about the Pan-Canadian Wind Integration Study, visit canwea.ca/wind-integration-study.

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Wind energy developments are making positive and lasting economic contributions while helping to diversify communities across Canada.

• Host communities are realizing significant economic and social benefits through new municipal tax revenues, plus stable income for farmers and landowners from land lease agreements.

• Wind energy is creating new high-value jobs, providing employment opportunities for local trades-people and contractors as well as full-time permanent jobs once the wind farm is operational.

• Wind energy projects bring direct investment in the form of contracts for raw materials and infusion of dollars to local services and retail businesses.

WIND ENERGY CREATES LOCAL BENEFITS

A 2015 study found that Montreal has become a major North American hub for the wind energy industry. The sector employs nearly 1,000 people in highly skilled jobs, with an average salary that compares favourably with other major industries in the city. – “Estimate of the number of wind industry jobs in the Montreal area”,

Aviséo Conseil.

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Provincial economies across Canada are seeing growth in investment, jobs and taxes as a result of their commitments to wind energy:

• According to the Alberta Supply Chain Study, the Alberta government’s Renewable Electricity Program could drive $8.3 billion of investment in new wind energy projects in the province, including $3.6 billion in local spending and 28,000 job years of employment by 2030.

• The wind industry in Quebec employs 5,000 full-time workers, whose average annual salary is 30 per cent higher than the Quebec average.

• A 2018 update of Wind Dividends: An Analysis of the Economic Impacts from Ontario’s Wind Procurements found that in the 25 years from 2006-2030, Ontario’s wind energy industry will generate 64,500 person-years of employment, and add $6.2 billion to provincial GDP.

Wind energy across Canada has:• Attracted more than $23 billion in investment.

• Created over 58,000 person years of employment in construction and operations.

• Directly benefited more than 299 communities in 12 provinces and territories, including involvement with over 35 Indigenous communities.

WIND ENERGY PROVIDES BENEFITS ACROSS CANADA

For more about the social and economic benefits of wind projects in Canada, visit canwea.ca/wind-facts/social-economic-benefits.

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Avian considerations:While the relative contribution to overall avian (bird and bat) mortality from wind turbines is extremely low relative to other sources of avian mortality, the wind energy industry is committed to continuous research and improvement in our understanding of avian interaction with wind turbines.

• Project developers ensure there are mechanisms in place to reduce potential risks to birds and to aid in furthering our understanding of actual impacts on avian species – both prior to and following commissioning of wind energy projects.

• The industry continues to monitor and research emerging issues with respect to bird impacts and to take steps to further mitigate losses. The wind industry is also held to high standards by regulatory authorities.

Did you know? Wind energy projects are subject to a rigorous permitting and approvals process that involves all three levels of government throughout the project lifecycle. This process ensures that energy projects are sited appropriately, and are good neighbours. Check out the CanWEA blog for details: A Primer On Alberta’s Wind Energy Permitting and Environmental Requirements.

PROTECTING WILDLIFEThe wind energy industry is committed to respecting and protecting wildlife, their habitat and the environment – including special consideration for impacts on birds and bats – when siting and operating wind farms. The industry partners with academic leaders, researchers, regulators and wildlife organizations to ensure development and operation of wind energy is responsible and sustainable.

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Bat considerations:CanWEA has developed a Wind Energy and Bat Conservation Review (Review) to provide the wind industry, policy makers, and other stakeholders with a scientific and ecological approach to supporting renewable energy production while minimizing the potential for impact on bats.

The Review objectively summarizes the body of scientific and practical knowledge gained over the last several decades regarding wind energy and bats. By consulting the Review, the wind industry and other stakeholders will be better positioned to make decisions using sustainable, science-based approaches to wind turbine siting and bat impact mitigation measures.

• To minimize and avoid risks to bats, project planners identify areas likely or known to be used by large numbers of bats and consideration is given to potential habitat impacts when deciding where to place wind turbines.

• Research is also investigating new ways to minimize impacts, such as identifying the wind speeds at which turbines can generate power with minimal impact on bats, the use of devices to deter bats from coming close to a turbine, and whether certain turbine colours are more effective in keeping bats away.

Wind energy does not emit greenhouse gas (GHG) emissions, so it does not pollute the environment or contribute to climate change. Climate change remains the single biggest threat to wildlife in that it destroys habitat, disrupts reproductive cycles, shifts ranges, alters hibernation habits, and impacts the availability of prey.

LEADING-EDGE BAT RESEARCH

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3 https://ses.library.usyd.edu.au/handle/2123/105594 http://www.hc-sc.gc.ca/ewh-semt/consult/_2013/wind_turbine-eoliennes/question-eng.php

– see answer to question 13.

A SAFE FORM OF ELECTRICITY GENERATION

Wind energy is environmentally-friendly, affordable, and benefits local communities. Studies also show it is a safe way to generate electricity.

The balance of scientific evidence and human experience to date concludes that wind turbines are not harmful to human health3. In fact, wind energy helps create a healthier environment by not emitting greenhouse gases or air pollutants, and using no freshwater to generate electricity.

Health Canada4 research also found that that wind turbine noise exposure was not associated with self-reported medical illnesses and health conditions.

For more information and resources, visit canwea.ca/wind-facts/your-health.

Threshold of hearing

Remote area on a very calm day

Average whisper

Distant highway traffic

Moderate rainfall

Normal human speech at 1m distance

Near the edge of a major highway

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At a distance of 550 metres, typically the sound from a wind turbine will have a sound pressure level of approximately 40 decibels at the outside of a residence.

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A SAFE FORM OF ELECTRICITY GENERATION

PROTECTING THE PUBLIC AND INDUSTRY WORKERS

The global wind industry collectively continues to engage with experts in science, medicine and occupational and environmental health to monitor ongoing credible research in the area of wind turbines and human health.

This also includes ensuring workers are safe when operating or maintaining wind farms. CanWEA has created two best practices guides to keep workers and the job site safe:

• The CanWEA Operations and Maintenance Caucus developed Best Practices for Wind Power Facility Electrical Safety to assist with the safe operation and maintenance of wind power generation facility electrical systems.

• CanWEA developed the Best Practices for Wind Farm Icing and Cold Climate Health and Safety to provide a tool to the industry that assists with the management of operations and maintenance health and safety at wind farms in cold climate areas.

For more information and resources, visit canwea.ca/operations-and-maintenance.

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For more information on wind farms and water, visit canwea.ca/wind-facts/water.

WIND FARMS AND WATER Access to clean, fresh water for families, farms, businesses and communities is an important issue in Canada and around the world, and it will only grow in importance as the stresses on our water supplies from climate change and population growth become more prominent.

• The power sector is one of the world’s biggest users of water, but wind energy uses virtually no water to produce electricity.

• Climate change is a major threat to the world’s fresh water resources. Wind energy does not emit greenhouse gases and therefore mitigates these threats to water by providing a solution for reliable, affordable electricity that does not contribute to climate change.

Wind energy developments are making positive and lasting contributions in communities across Canada while helping to preserve and protect water resources.

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WIND ENERGY AND LAND USEWind turbines occupy a small fraction of the land on which they are sited, so they work well with existing land uses. In rural settings, farming and ranching continue undisturbed.

Rural communities enjoy many economic and social benefits such as municipal tax revenues, and high-value jobs during construction and once the wind farm is operational. Wind projects also support local services and businesses.

For more information visit canwea.ca/communities/land-use.

DECOMMISSIONING AND REPOWERING Wind farms operate typically for 25 to 30 years. Once a wind farm reaches the end of its life, it can be decommissioned or repowered. If decommissioned, the wind farm is dismantled. If repowered, the wind farm’s equipment is replaced or upgraded with more advanced and efficient technology.

For more information visit canwea.ca/communities/planning-a-wind-farm.

COMMUNITY AND INDIGENOUS ENGAGEMENT:The wind energy industry is dedicated to continually improving and strengthening the ways it works with local stakeholders. With the input of municipal leaders and public consultation experts, the Canadian Wind Energy Association has developed Best Practices for Indigenous and Public Engagement to help industry members consult and communicate on wind energy developments.

For more information visit canwea.ca/communities/engagement.

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LOOKING AHEAD – MORE TO THE MIX THAN A LOW PRICE As the electricity grid evolves and electrification expands, wind energy will play an integral role alongside other renewable energy technologies. Here is why:

Ratepayer protection: Wind energy can already provide the lowest cost for new electricity in Canada and experts predict additional cost declines. Furthermore, with no fuel costs, the price is stable over the life of the project.

Social and economic benefits: Wind energy provides many important social and economic benefits for rural and Indigenous communities.

Scalability and flexibility: Wind energy projects can be built rapidly at different scales by a wide variety of stakeholders, enabling Canada to flexibly harness wind in response to growing demand for renewable electricity.

Environmental sustainability: Wind energy does not produce greenhouse gas emissions, air or water pollution, nor hazardous, toxic or radioactive waste.

A team player: Wind energy is complementary to other renewable energy technologies. For example, electricity production from wind energy peaks in the winter and at night, while solar energy production peaks in summer and in the day.

The industry’s Vision for the coming decades is that Canada’s electricity demand is expected to increase as Canada moves towards a cleaner

economy and strives to meet its climate change emission commitments.

This will require more renewable and non-emitting electricity generation, including wind energy, to de-carbonize and electrify

major segments of the evolving economy.

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TAKE ACTION!Join the conversation or get involved in wind energy development!• Celebrate Global Wind Day on June 15• Submit a letter to your provincial representative• Write a letter to your local newspaper• Tell us your story – share your views on wind energy• Check out CanWEA’s Careers page for wind energy job postings• Join our social circle:

a @CanWEAj Canadian Wind Energy Association b Canadian Wind Energy Association (CanWEA)r CanWEA

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Learn more about the benefits of wind energy, visitcanwea.ca.

VisionA Wind Energy

A Canadian Success StoryA Competitive PriceA Reliable PartnerA Clean Solution

A Growing DemandA Low Carbon GridAn Electrified Nation

More than a Low PriceAn Expanding Role

canwea.ca/vision

for Canada