The economic benefits of developing wind power in Quebec

Renewable Energy Credits and Quebec wind power

The electricity produced by Quebec wind farms, when exported to New England States, qualifies for credits (RECs) of up to 6,4 cents per kilowatthour. For more information, consult the report produced by La Capra Associates.

Investments in completed and future wind energy projects

As of March 2013:

$ 5.8 billion was invested in projects completed or in progress, including
$ 3.5 billion invested in Quebec

Between now and 2015:

$ 8.0 billion will have been invested, of which
$ 5.0 billion in Quebec (61%)

Significant operating expenses

$ 3 Billion over 20 years in operating expenses
More than $ 25 million per year paid to municipalities and landowners hosting
wind farms (not including ROI for municipalities who take interest in projects.)

Overall economic impact

The benefits are calculated based on the information available in February 2013 and include all capital assets and operations. The main sectors involved are construction and manufacturing.

$ 473 million per year in wealth creation
More than 5,000 jobs will be supported during the phases of construction and the 20 year operating period (Developers, manufacturers and their suppliers included.)
An average annual salary of $ 48,140, which is 30% above the average income of Quebeckers
An average of 20 jobs per year are supported for each MW of installed wind power

Economic impact of investments and operating wind farms in Québec

(Per year, for 2015 installed power capacity, in 2013 dollars.)
* Including incidental taxation (QPP, FSS, CSST) and consumption taxes on wages earned.
Source: SECOR-KPMG estimates from Statistical Institute of Quebec simulations.

Economic impact - construction and operation of Quebec wind farms

(Per year, for 2015 installed power capacity, in 2013 dollars.)
Source: SECOR-KPMG estimates from Statistical Institute of Quebec simulations.

The above benefits do not include the later round effects generated by workers spending "additional income" in the region. Additional income is equivalent to the overall gap of 30% in salary as compared to Quebec average wages. The later round effects represent an average of $ 58 million per year in additional consumer spending.

Economic impact of Quebec wind farms Quebec factoring in later round effects

Source: SECOR-KPMG estimates from Statistical Institute of Quebec simulations.

Government revenues

In total, the Quebec government would reap more than $ 1 billion in taxes and tax revenue. These revenues exclude corporate tax.

On an annual basis, the government receives an average of $ 75 million.

Each turbine brings in about $ 570,000 in taxes and tax revenue during its period of operation.

Jobs in all sectors

Three major wind turbine manufacturers have their Canadian headquarters in Montreal: ENERCON, GE and REpower. These three companies employ 250 people.

In addition to providing direct employment in the region where their wind farms are located, many developers have offices in Montreal. More than 130 professionals work there.

The professional services sectors (engineering, insurance, law, etc..) are also kept busy. Nearly 900 jobs per year come from this sector. Many consultants are actively engaged in the wind industry. They use their Montreal and Quebec facilities as platforms to sell their expertise.

A vibrant manufacturing sector

Within 10 years, a vibrant wind energy sector has taken shape in Quebec. It encompasses a minimum of 75 companies. These businesses employ nearly 2,300 workers across the Province, with 20% of this workforce located in the Gaspé.

The manufacturing sector has invested to adapt its production. These investments, which are presently being documented, amount to hundreds of millions of dollars and their economic impact has not yet been measured.

Similarly, Quebec manufacturers have started using their experience as a lever to position themselves in foreign markets. For some, half their wind related revenues are exports.

The impact of adding 700 MW of wind power

Considering the benefits estimated for 2015, adding 700 MW of wind power would add $ 90 million per year to the economy and support an extra 900 jobs annually.

March 2013 - SECOR - KPMG