US continues significant wind progress

• 13 years ago (2011-04-09)
• Junior Isles

North America 1004 Renewables 757

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Wind power is currently second in adding new generation capacity in the US, close behind natural gas, according to the American Wind Energy Association (AWEA).

America’s wind power industry grew by 15 per cent in 2010 and provided 26 per cent of all new electric generating capacity in the US, AWEA has announced. With 5116 MW added last year, US wind installations now total 40 181 MW, according to the US Wind Industry Annual Market Report.

Elizabeth Salerno, director of data and analysis and chief economist for AWEA, said wind will continue to remain competitive with natural gas as a growing source of power generation. “Wind can be used to sign 20-to-30-year contracts at a low, affordable price that is stable and can be locked in for rate payers.”

Wind has comprised approximately 35 per cent of all new capacity added since 2007, said Denise Bode, CEO of AWEA. At the end of 2010, wind made up 2.3 per cent of US electricity generation, up from 1.8 per cent the previous year.

While the numbers indicate steady growth, they are also a reflection of the US' domestic wind manufacturing trend. Wind turbines domestic content is now above 50 per cent, up from 25 per cent in 2005.

“We’re seeing the majority of turbine manufacturers are doing nacelle assembly here in the U.S,” said Jessica Isaacs, senior policy analyst for AWEA. “That drives manufacturing for sub-components like gearboxes and large casting.”

In the US, wind manufacturing takes place at over 400 facilities in 44 states. Some facilities are wind-specific, but most are small manufacturers – previously auto or aerospace manufacturers – that have diversified into the wind industry, Isaacs said. Fourteen new facilities went online in 2010, and 23 new facilities were announced.

Nine turbine manufacturers have over 1 per cent total market share in the US. GE currently produces 46 per cent of the turbines in the U.S., followed by Vestas, Gamesa and Mitsubishi.

In terms of generation ownership, independent power producers own 85 per cent of new wind built in 2010, while utilities own 15 per cent. Community wind projects comprise 5.6 per cent of these new builds.

Independent power producers with the most new wind assets in 2010 were Iberdrola Renewables (with 1074 MW of new installations), followed by NextEra Energy Resources (603 MW), Horizon Wind Energy (499 MW), Terra-Gen (300 MW) and Duke Energy (251 MW).

The utilities that are most active in buying or owning wind assets are Xcel Energy with 3458 MW total of wind capacity and MidAmerican Energy with 3129 MW total wind capacity. CPS Energy of San Antonio is the most active municipally-owned utility, with 850 MW of wind capacity. Of the 516 MW installed in 2010, over 61 per cent of the capacity was contracted under a power purchase agreement.

Wind projects are not expected to slow in 2011. The US wind industry entered this year with over 5600 MW under construction, more than double the 2750 MW under construction entering 2010. This construction activity exceeds such activity at the end of the year in 2007, 2008 and 2009. In addition, 6200 MW of turbine orders were placed in 2010, and of those, 2300 are scheduled for

delivery in 2011.

This flurry of activity can be partly attributed to the extension of 1603 investment tax credit program at the end of 2010, Bode said.

“We remain on track to produce 20 per cent of America’s electricity by 2030 with wind, as laid out by the Department of Energy during the Bush Administration,” Bode said. “Continued interest and investment by manufacturers in America demonstrates that the U.S. continues to be a global powerhouse for wind development.”