AWEA: Wind energy surges 39% despite recession

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Despite the sputtering U.S. economy, 2009 turned out to be a record-setting year for the U.S. wind industry, which installed over 10,000 MW in new capacity. That surprising growth pushed the total U.S. wind capacity past the 35,000- MW mark, keeping the United States in first place on the list of global wind-producing countries. Second-place China is coming on strong, however, having installed more wind in 2009 than any other country. To stay competitive in this global footrace, and continue growing, the U.S. industry will need strong policy support from the U.S. Congress in the form of a renewable electricity standard.

The U.S. wind capacity installed in 2009 alone is sufficient to power the equivalent of about 2.4 million American homes. The total installed wind in the United States has the potential to power 9.7 million homes. Wind was responsible for 39% of all the new electric generating capacity added in 2009, second only to natural gas. Measured by carbon emissions avoided, 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 consumed for steam or cooling in conventional power plants. The strong 2009 results carried the industry past a number of important milestones. The number of states with installed utility-size wind projects grew to 36 with the addition of Arizona, which installed its first project in 2009. The number of states with 1,000 MW of wind or more reached 14 with the addition of Illinois, Indiana, Kansas, North Dakota, New York, Oklahoma, and Wyoming.. And turbine size continues its upward trajectory—the average is now 1.75- MW, compared to 1.67 for turbines installed in 2008.

Growth came to the U.S. small wind market as well in 2009, with a 15% increase–20 megawatts (MW) of new installed capacity–pushing the industry past the milestone of 100 MW in total capacity. The number of Americans generating their own electricity with small-scale wind turbines (those with rated capacities of 100 kilowatts and under) increased by 10,000 last year, despite the economic downturn.

The year’s growth in the U.S. wind industry was the continuation of an upward trajectory that began earlier in the decade. Over the last 10 years, cumulative U.S. wind capacity has soared from about 2,500 MW to over 35,000 at the end of 2009—an increase of 1,300%. Growth in the past five years has averaged 39% annually.

The 2009 growth was also boosted by incentives included in the American Recovery and Reinvestment Act. (ARRA), which included provisions that converted the production tax credit–the traditional incentive for wind developers–into an investment tax that could be used during an economic downturn. In 2009, the convertible tax credit was distributed to at least 37 projects, which were responsible for almost 3,000 MW in new capacity. The Recovery Act also included incentives for renewable energy manufacturing and research and, for small wind projects, removed the $4,000 cap on the small wind investment tax credit. In the end, all of these incentives helped the wind industry sustain forward momentum in an otherwise hostile economic climate.

The economic benefits of the Recovery Act incentives will continue to be felt in 2010 because wind projects that are under construction through the end of the year will be eligible for convertible tax credits.

An estimated 85,000 Americans are employed in the wind industry and related fields. In 2009, at least 39 wind manufacturing plants were expanded, announced or opened. This was a 33% drop from 2008, when 58 new or expanded plants were announced. But the fact that manufacturing activity continued in 2009, even at reduced levels, in the midst of a sharp recession suggests the huge job potential for the wind sector, given the right policies.

Beyond short-term incentives such as the production tax credit and those included in the American Recovery and Reinvestment Act, a clear long-term national commitment to renewable energy will be needed to create the demand that will keep the U.S. industry competitive in the global race to attract wind manufacturing and jobs. Greater certainty about the long-range U.S. market is crucial if turbine manufacturers are to commit to investing the sums required to build more U.S. plants. For the United States to be the global leader in wind manufacturing, the country will need a long-term and stable market, investments from companies from around the world, and a backlog of product orders.

One sure way to create the market certainty is for the United States to adopt binding renewable energy targets, as 36 countries have already done. Efforts are underway in Congress to enact those targets as part of a renewable electricity standard. The United States also needs to build new, high-voltage transmission lines to connect remote wind farms to populated areas where the power is needed. These are daunting tasks. But the progress made in 2009 suggests an industry that is at the cusp of new growth, and new opportunity.

Key Facts from this Report:

• Over 10,000 MW of wind installed in 2009, the largest year in U.S. history, keeping the U.S. as the global leader in wind power.
• Current U.S. wind power capacity is over 35,000 MW
• The U.S. wind industry grew 39% in 2009, and 39% annually over the past 5 years.
• 14 states are in the “Gigawatt Club” with more than 1,000 MW of wind capacity installed 36 states now have utility-scale wind projects
• Top Wind Power Owner – NextEra Energy Resources
• Utility With Most Wind Power on System – Xcel Energy
• Top U.S. Wind Turbine Supplier – GE Energy
• Total Direct Jobs in the Wind Industry today – over 85,000
• The small wind market grew 15% in 2009 bringing total small wind sales to 100 MW.
• Wind energy provides 1.8% of U.S. power
• The wind industry supported 85,000 jobs across all 50 states in 2009
• There were 39 new, announced or expanded manufacturing facilities in 2009 and the total number of online facilities is well over 200.
• There are now nine different turbine manufacturers with manufacturing facilities in the U.S.