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U.S. fastest growing wind power market

By Consulting Specifying Engineer Staff -- Consulting-Specifying Engineer, 5/30/2008 8:24:00 AM

For the third consecutive year, the U.S. was home to the fastest-growing wind power market in the world in 2007, according to a report released May 29 by the U.S. Dept. of Energy and Lawrence Berkeley National Laboratory. Specifically, U.S. wind power capacity increased by 46% in 2007, representing a $9 billion investment in new wind projects. At this pace, wind is on a path to becoming a significant contributor to the U.S. power mix: wind projects accounted for 35% of all new electric generating capacity added in the U.S. in 2007, and more than 200 GW of wind are in various stages of development throughout the country.

The 2007 edition of the “Annual Report on U.S. Wind Power Installation, Cost, and Performance Trends” provides a comprehensive overview of developments in the rapidly evolving U.S. wind power market. The need for such a report is said to have become apparent in the past few years as the wind power industry has entered an era of unprecedented growth, both globally and in the United States. “With the market evolving at such a rapid pace, keeping up with trends in the marketplace has become increasingly difficult,” said author Ryan Wiser, of Berkeley Lab. “Yet, the need for timely, objective information on the industry and its progress has never been greater … this report seeks to fill this need.”

Drawing from a variety of sources, the report—the second in an ongoing annual series—analyzes trends in wind power capacity growth, turbine size, turbine prices, installed project costs, project performance, wind power prices, and how wind prices compare to the price of conventional generation. It also describes developer consolidation trends, current ownership and financing structures, and trends among major wind power purchasers. Finally, the report examines other factors affecting the domestic wind power market, including grid integration costs, transmission issues, and policy drivers.

Some key findings from the just-released 2007 edition include:

•    The U.S. is the fastest-growing wind market worldwide.  The U.S. has led the world in new wind capacity for three straight years, and 1.2% of the nation’s electricity supply could be met with the wind capacity on line at the end of 2007.
•    Growth is distributed across much of the United States, with states as diverse as Texas, Colorado, Illinois, and Oregon leading the U.S. in annual wind capacity growth in 2007. Sixteen states had more than 100 MW of wind capacity installed by the end of 2007, with six topping 1,000 MW.
•    Market growth is spurring manufacturing investments in the U.S.  Several major foreign wind turbine manufacturers either opened or announced new U.S. wind turbine manufacturing plants in 2007.  Likewise, new and existing U.S.-based manufacturers either initiated or scaled-up production.  All told, the new turbine and component manufacturing facilities opened or announced in 2007 alone could create more than 4,700 new jobs in the U.S.
•    Wind turbine prices and installed project costs have risen since 2002.  Turbine price increases have been driven by weakness in the dollar, higher prices for materials and energy inputs, and shortages in certain turbine components – all factors that are impacting many different types of generating technologies.
•    Wind project performance has improved in recent years.  This improvement in project performance has been driven in part by taller towers and larger rotors, enhanced project siting, and technological advancements.
•    Wind power is competitive and has provided good value in wholesale power markets.  Despite rising project costs, in recent years, wind power has consistently been priced at or below the average price of conventional electricity, as reflected in wholesale power prices.

Berkeley Lab’s contributions to this report were funded by the Wind & Hydropower Technologies Program, Office of Energy Efficiency and Renewable Energy of the U.S. Department of Energy.

Additional information is available at:

•    The report – Annual Report on U.S. Wind Power Installation, Cost, and Performance Trends: 2007 – can be downloaded from http://eetd.lbl.gov/ea/ems/re-pubs.html
•    A PowerPoint presentation summarizing key findings from the report can be found at:  http://eetd.lbl.gov/ea/ems/emp-ppt.html
•    The Department of Energy’s press release is available at: http://energy.gov/news/6286.htm

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