The Canadian Wind Energy Association along with GE Energy Financial Services is asking the federal government to extend a federal subsidy that promotes renewable energy development in Canada.
According to a GE Financial study, the program not only supports development of the sector, but adds to government coffers through increased tax revenue.
The existing $1.48 billion program began in 2007 and all the funds were allocated to more than 4,000 megawatts worth of projects. Projects accepted into the program receive one pre-tax cent per kilowatt-hour for the first 10 years of power production, which helps developers more quickly generate a return on investment.
The GE study suggested an additional $1.5 billion in the program could generate an additional 5.2 gigawatts of renewable power and create about 49,000 jobs during construction and 1,800 permanent jobs. It would provide a net inflow of $287 million in taxes over a 25-year lifespan of a project.
Without the program, the wind power association suggests investors will likely seek more competitive investment opportunities in the U.S., leading to delays and even cancellations of planned wind projects in Canada.