Vestas to invest in Ontario?

The Toronto Star is reporting that Danish wind turbine giant Vestas may be considering establishing manufacturing facilities in Ontario. Vestas representatives are rumoured to have scouted Hamilton, Niagara, Kingston and Belleville last week as potential locations. Vestas has already selected Toronto as its North American headquarters for onshore and offshore wind sales.

Vestas' decision will no doubt be heavily informed by the demand for its turbine under Ontario's new Feed-in Tariff ("FIT") program. Many developers have likely already negotiated deals with Vestas that are contingent on the developers winning FIT contracts. The OPA is expected to beginning awarding FIT contracts in late February.

By opening shop in Ontario, Vestas will be well-positioned to serve both the Ontario markets and markets south of the border, particularly for offshore wind. In addition to Ontario, New York, Ohio, Wisconsin and Michigan are all considering developing wind farms in the Great Lakes. States along the eastern seaboard may also look offshore for renewable power.

An investment by Vestas would be another big win for the Ontario government. Last month, the government announced a $7 billion deal green energy deal with Samsung. While both deals would help transition Ontario to an economy powered by green energy, many observers would like to see more "home grown" successes under the Green Energy Act.