The U.S. wind energy grew in 2009, despite a severe recession. There are 36 states that have utility-scale wind projects and 14 states are in the “Gigawatt Club” with more than 1,000 MW of installed wind capacity per state. In state rankings, Iowa leads in terms of percentage of electricity from wind power, getting 14% of its power from the wind, and also leads in highest number of jobs in the manufacturing sector. Texas consolidated its lead in wind capacity and in largest wind farms installed, according to the annual wind industry market report by the American Wind Energy Association (AWEA).
“Jobs, business opportunities, clean air, energy security—wind power is delivering today on all those fronts for Americans,” said AWEA CEO Denise Bode. “Our annual report documents an industry hard at work and on the verge of explosive growth if the right policies—including a national Renewable Electricity Standard (RES) — are put in place. A national RES will provide the long-term certainty that businesses need to invest tens of billions of dollars in new installations and manufacturing facilities which would create hundreds of thousands of American jobs.”
Highlights from AWEA’s new report include:
•The U.S. wind energy industry installed over 10,000 MW of new wind power generating capacity in 2009, the largest year in U.S. history, and enough to power the equivalent of 2.4 million homes or generate as much electricity as three large nuclear power plants.
•In industry rankings, GE Energy remained #1 in U.S. wind turbine sales; NextEra Energy Resources continued to lead in wind farm ownership; and Xcel Energy continued to lead utilities in wind power usage. At the same time, however, more companies are now active in each of these areas, showing that the wind energy market is diversifying as it expands.
•The report’s section on manufacturing shows that in spite of a slowdown in wind turbine manufacturing in 2009 compared to 2008, 10 new manufacturing facilities came online in the U.S. last year, 20 were announced, and nine facilities were expanded. The largest category was wind turbine sub-components, such as bearings, electrical components and hydraulic systems. In all, the U.S. wind energy industry opened, announced or expanded over 100 facilities in the past three years (2007- 2009), bringing the total of wind turbine component manufacturing facilities now operating in the U.S. to over 200.
•All 50 states have jobs in the wind industry.
•Approximately 85,000 people are employed in the wind industry today and hold jobs in areas as varied as turbine component manufacturing, construction and installation of wind turbines, wind turbine operations and maintenance, legal and marketing services, transportation and logistical services, and more.
•To ensure a skilled workforce across the wind energy industry, 205 educational programs now offer a certificate, degree, or coursework related to wind energy. Of these 205 programs, the largest segments are university and college programs (45%) and community colleges or technical school programs (43%).
•Despite the economic downturn, the demand for small wind systems for residential and small business use (rated capacity of 100 kW or less) grew 15% in 2009, adding 20 MW of generating capacity to the nation. Seven small wind turbine manufacturing facilities were opened, announced or expanded in 2009.
•Offshore wind power is gaining momentum in the U.S. The report lists seven projects with significant progress in the planning, permitting, and testing process. Both the federal government and several states established significant milestones in 2009 to encourage offshore wind power development.
•America’s wind power fleet of 35,000 MW will avoid an estimated 62 million tons of carbon dioxide annually, equivalent to taking 10.5 million cars off the road.
•America’s wind power fleet will conserve approximately 20 billion gallons of water annually that would otherwise be lost to evaporation from steam of cooling in conventional power plants.
Renewable Energy and Clean Transportation Reports
By John Addison (1/26/10)
The U.S. wind industry broke all previous records by installing 9,922 MW installed last year. This expanded the nation’s wind fleet by 39% and bring total wind power generating capacity in the U.S to over 35,000 MW. The five-year average annual growth rate for the industry is also 39%. U.S. wind projects today generate enough to power the equivalent of 9.7 million homes, protecting consumers from fuel price volatility and strengthening our energy security.
Wind power and natural gas are the leading sources of new electricity generation for the United States, generating 80% of new capacity, as most utilities avoid the risks of adding coal and nuclear power plants.
The 39% expansion of wind power is remarkable because many projects required hundreds of millions in long-term financing during the sever recession and time when many banks stopped lending. Also, many lenders who previously wanted production tax credits (PTC), lost money in 2009 and had no need for PTC.
There is mixed optimism about wind power’s continued growth will continue in 2010. Three GW of new wind are under construction with more projects that will be added during the year. TVA added 815 MW is a good example.
Improved price-performance of equipment is one driver. 1603 Treasury Grants (Excel spreadsheet of 240 Funded Projects), Investment Tax Credit, and other tax credit with completion deadlines will also fuel growth in 2010. RPS in 30 states is another driver.
Without new energy or climate legislation we may not see added growth of wind and other renewables. Uncertainty is a deal killer. Lack of new high-speed electricity transmission is the biggest obstacle to growth of renewables. NIMBY activism and lack of appropriate cost sharing are challenges for high-speed transmission.
Natural gas growth may surge ahead if wind growth stalls in 2010. Utilities also prefer natural gas power plants for baseload power. In the decade ahead, large-scale grid storage may make the variability of wind power less of an issue. Report about 32 new grid storage and smart grid projects.
“The U.S. wind energy industry shattered all installation records in 2009, chalking up the Recovery Act as a historic success in creating jobs, avoiding carbon, and protecting consumers,” said AWEA CEO Denise Bode. “But U.S. wind turbine manufacturing – the canary in the mine — is down compared to last year’s levels, and needs long-term policy certainty and market pull in order to grow. We need to set hard targets, in the form of a national Renewable Electricity Standard (RES), in order to provide the necessary stability for manufacturers to expand their U.S. operations and to seize the historic opportunity we have today to build up a thriving renewable energy industry.”
Early last year, before the Recovery Act (ARRA), the industry anticipated that in 2009 wind power development might drop by as much as 50% from 2008 levels, with equivalent job losses. The clear commitment by the President to create clean energy jobs and the swift implementation of ARRA incentives by the Administration in mid-summer reversed the situation.
Recovery Act incentives spurred the growth of construction, operations and maintenance, and management jobs, helping the industry to save and create jobs in those sectors and shine as a bright spot in the economy. Some 50 U.S. facilities are planning expansion, including turbine manufacturers headquartered outside the U.S., although some will need financing and greater market certainty to expand. The United States competes with Europe and Asia for wind industry job growth. In 2009, most U.S. wind projects were divided among a dozen turbine manufacturers such as General Electric, Vestas, Suzlon, Siemens, and Mitsubishi.
America’s wind power fleet will avoid an estimated 62 million tons of carbon dioxide annually, equivalent to taking 10.5 million cars off the road, and will conserve approximately 20 billion gallons of water annually, which would otherwise be withdrawn for steam or cooling in conventional power plants.
Texas extended its lead benefiting from strong winds and fewer regulatory hurdles than many states in the nation. Fourteen U.S. states now have over 1 GW of installed wind. The top five states by wind power installed (in MW):
- Texas 9,410
- Iowa 3,670
- California 2,794
- Washington 1,980
- Minnesota 1,809
AWAE Market Report
Can wind power continue to grow? Yes. The November 2009 feature article in Scientific American reported how wind, water and solar technologies can provide 100 percent of the world’s energy, eliminating all fossil fuels by 2030. Recommended reading is “A Plan to Power 100 Percent of the Planet with Renewables” by Mark Z. Jacobson and Mark A. Delucchi.