Catching the Wind: AWEA Report Looks at 2005 Industry Leaders

Catching the Wind: AWEA Report Looks at 2005 Industry Leaders

Compiled from information provided by the American Wind Energy Association

The American Wind Energy Association’s (AWEA) annual industry rankings (as of December 31, 2005) of wind energy development in the United States provides a useful measure of the size and breadth of the American wind energy industry. The rankings include the leading states for wind energy development, the suppliers of wind energy turbines, and owners and purchasers of wind energy.

According to the AWEA, the wind industry broke earlier records in 2005, installing over 2,400 megawatts (MW) or over $3 billion worth of new generating equipment in 22 states. The total of 2,431 MW raised the cumulative U.S. installed wind power fleet by more than 35 percent, bringing the industry's total generating capacity to 9,149 MW, enough to serve the equivalent of 2.3 million homes.

“Wind energy’s continuing expansion, as reflected in these rankings, provides fresh evidence that it is capable of contributing to the nation’s electricity supply near the level of conventional power sources,” said AWEA executive director Randall Swisher. “Wind energy is a clean, safe, domestic, abundant, and affordable energy source, and one of the best options we have for new power generation today.”

States with Most Wind Energy Installed, by Capacity (MW)

1. California – 2,150 MW
2. Texas – 1,995 MW
3. Iowa – 836 MW
4. Minnesota - 744 MW
5. Oklahoma – 475 MW
6. New Mexico – 407 MW
7. Washington – 390 MW
8. Oregon – 338 MW
9. Wyoming – 288 MW
10. Kansas – 264 MW

(Capacity measures a turbine’s generating potential. A 1.5-MW wind turbine operating in a good wind resource area can be expected to generate more than 4 million kWh per year or enough to supply 400 average homes, according to the report.)

As of the end of 2005, California was the state with the most wind power capacity installed, with Texas gaining speed and actually anticipated to overtake California in 2006, according to the report. The wind industry began in California and that state has continued to be the largest wind power capacity state since the first installation there in 1981 of electricity-generating wind turbines.

The No. 5 state with most wind energy installed--Oklahoma--had two large projects installed there in 2005: the 147 MW Weatherford Wind Energy Center and the 151 MW Blue Canyon II project. Wyoming, which was No. 5 on last year’s ranking, fell far behind in 2005, with Oklahoma, New Mexico (added 140 MW of wind power in 2005), Washington (added 149 MW) and Oregon (added 75 MW) pulling ahead.

States with Most Wind Energy Resource (in billion kWh)

1. North Dakota – 1,210
2. Texas – 1,190
3. Kansas – 1,070
4. South Dakota – 1,030
5. Montana – 1,020

For the most part, the windiest states in the national are in the Great Plains, the report points out. The list of the states with the most wind energy resource takes into consideration environmental and land use exclusions for wind class of three and higher. Those states that have both developable windy areas and a good wind energy policy are the states that are attracting the most investment, the report adds. (Even though California did not make it into the list’s Top 10, it does have some areas that have a good wind resource.)

Largest Wind Farms Operating in the U.S. (MW)

1. Stateline, Oregon/Washington – 300 MW
2. King Mountain, Texas – 278 MW
3. Horse Hollow Wind Energy Center, Texas – 210 MW
4. New Mexico Wind Energy Center, New Mexico – 204 MW
5. Storm Lake, Iowa – 193 MW

AWEA considers a wind farm to be one project if it is built and owned by the same company or companies and is geographically contiguous. Overall, the report points out, wind farms have been getting bigger to take advantage of some economies of scale. The Horse Hollow Wind Energy Center in Taylor County, Tex., joined the ranks of the top five largest single wind farms in 2005.

Leading Owners of Wind Energy Installations in the U.S. (MW)

1. FPL Energy – 3,192 MW
2. PPM Energy – 518 MW
3. MidAmerican Energy – 360.5 MW
4. Caithness Energy – 346 MV
5. Edison Mission Group – 316 MW
6. Shell Wind Energy – 315 MW

Still leading the pact is FPL Energy--by far the largest owner of wind energy facilities in the U.S. Not only that, FLP Energy’s fleet also grew the fastest in 2005, adding over 500 MW of new capacity.

No. 2 on the list, PPM Energy moved up in 2005 from its No. 4 spot in 2004. PPM added nearly 400 MW of new capacity in 2005 and plans to attain 2,300 MW of wind generation in operation by 2010.

MidAmerican Energy moved into third place in terms of ownership, leading the way in terms of utilities building and owning wind power for their customers’ use. Caithness Energy (#4) and Edison Mission Group (#5) also made the top five.

Manufacturers’ Installed Capacity for the Past Five Years

2005
GE Energy – 1,433 MW
Vestas – 700 MW
Mitsubishi – 190 MW
Suzlon – 55 MW
Gamesa – 50 MW

2004
GE Energy – 171 MW
Mitsubishi – 120 MW
Vestas – 97 MW

2003
GE Energy – 903 MW
Vestas – 359 MW
Mitsubishi – 201 MW
NEG Micon – 129 MW
Gamesa – 56 MW

2002
Vestas – 175
NEG Micon – 98 MW
GE Energy – 62 MW
Mitsubishi – 61 MW
Bonus – 48 MW

2001
Vestas – 653 MW
Enron Wind – 418 MW
Bonus – 278 MW
Mitsubishi – 221 MW
NEG Micon – 119 MW

GE Energy dominated the U.S. market in 2005, according to the report. Its turbines accounted for nearly 60 percent of the new capacity added. Vestas turbines accounted for nearly 30 percent. Mitsubishi, Suzlon, and Gamesa round out the top five. Suzlon, Gamesa and Clipper Wind have recently established manufacturing facilities in the U.S. With more new entrants entering the U.S. market, it is anticipated that the market will become less concentrated.

(Some previous manufacturers in the top five no longer exist: NEG Micon has now merged with Vestas; Siemens purchased Bonus; and GE Energy purchased the wind turbine manufacturing component of Enron Wind.

Utilities/Power Companies that Buy the Most Wholesale Wind Power (MW purchased)

1. Xcel Energy purchases the output from 1,048 MW of wind power.
2. Southern California Edison purchases the output from 1,021 MW of wind power.
3. Pacific Gas & Electric Co. purchases the output from 680 MW.
4. PPM Energy purchases the output from 606 MW (for resale).
5. TXU purchases the output from 580 MW.

Southern California Edison (SCE) has been surpassed as the largest purchaser of wind energy. Xcel Energy, with operations in Minnesota, Colorado, and Texas, was purchasing power from 1,048 MW of wind power as of the end of 2005, pushing SCE from its longtime first place position. (SCE purchased the output from 1,021 MW of wind.) In addition, Xcel Energy intends to purchase the power output from 775 MW of new wind power capacity for its Colorado system by 2007, and SCE is now under contract to purchase the output from 393 MW of new wind power capacity when it is built.

Net Annual Installed Capacity of Wind Power Nationally Over the Past Five Years

2005 – 2,424 MW (2,431 MW installed; 7 MW decommissioned)
2004 – 372 MW
2003 – 1,667 MW
2002 – 411 MW
2001 – 1,697 MW

Wind energy installations have witnessed a "roller-coaster pattern" in the last five years, the report notes. This is a result of the two-year extensions of the eligibility period for the wind energy production tax credit.

In 2005, for the first time in the credit’s history, Congress extended the eligibility period before it was allowed to expire, which will allow the industry to use the momentum from 2005 into 2006. Many states are requiring more renewable energy to be built, and utilities are becoming more interested in wind power to diversify their power sources and take advantage of a fuel-free, abundant resource. For all these reasons, the report says, installations are expected to top 3,000 MW in 2006.

Formed in 1974, the American Wind Energy Association (AWEA) is the national trade association of the U.S. wind energy industry. The association’s membership includes turbine manufacturers, wind project developers, utilities, academicians and interested individuals. More information on wind energy is available at AWEA Web site.

Published 04/28/2006