Incentives

Many countries, like U.S., Canada and Germany, provide tax incentives to promote clean energy over traditional energy sources to reduce the emissions of greenhouse gases. For Canada, we have an incentive called Wind Power Production Incentive (WPPI); this is a $ 260 million program of 15 years duration that started in 2002. The WPPI will support financially the installation of 1,000 MW of new capacity over a period of five years, and will pay incentives of about 0.01$ per kilowatt hour of production for the next ten years. In 2005-06, six projects have been commissioned for a total of $150 Million investment over 10 years which will give 436 MW of wind power capacity. Ever since the WPPI was introduced in 2002, $239 Million have been invested, which is about 670 MW of wind power capacity in approximately 18 projects. This incentive applies to electric utilities and power producers and covers approximately half of the cost of wind turbine installation. Wind power is therefore very desirable, mostly in global, national and company scale to reduce the emission of greenhouse gases.