Keith's Corner

A Word of Warning- We Can’t All Be On Top

If there is one constant in the approaches taken by various governments with respect to renewable energy, it is that the roll-out plans are almost always coupled with comments on how the economy of the jurisdiction in question is going to be transformed by becoming a centre for the manufacture of the equipment required. It just stands to reason that not every province, state or country can be such a centre and the results are beginning to become evident.

Recent articles in the press reveal that in Michigan, which appeared to be counting on the manufacturing of wind generation equipment to help offset the loss of jobs from the downturn in the auto industry, manufacturers were not all that optimistic and orders for new wind turbines have slowed significantly.

In a recent report, the American Wind Energy Association reported that manufacturing in the U.S. lagged in 2009 with plants using single shifts or being totally idle due to lack of contracts. While some of this excess capacity may well be taken up by the impact of new government programs, it does not bode well for facilities that are either in the planning stages or not yet on the drawing board.

As the old adage goes, “don’t count your chickens before they hatch”.

Last updated Jan 29, 2010