Cambridge, Massachusetts, 14 August 2008

On the back of three years of consistent growth, the US wind market is poised for a record-breaking surge with cumulative installed wind capacity to surpass 150 gigawatts (GW) by 2020, according to a recent market study from Emerging Energy Research, a leading research and advisory firm analyzing clean and renewable energy markets on a global basis.

With 5,329 MW of new wind capacity installed in 2007, the US wind power market was responsible for installing more than 27% of newly added global wind capacity this past year, securing the US' position as the largest wind growth market by annual installations for the third straight year. 2008 is poised to set another record for annual installations in the US, with over 8 GW of wind projects currently under construction scheduled for operation by year's end, according to EER.

"Wind is becoming increasingly competitive with conventional fossil fuel power generation options such as natural gas and coal. Given the substantial volatility of fossil fuel capital and operating costs in the past several years, wind is now one of the least-cost power generation options available to US utilities seeking new capacity," says EER Research Director Joshua Magee.

More than half of US states have enacted Renewable Portfolio Standards (RPS') to date, creating demand for up to 295 terawatt-hours (TWh) of renewable energy supply by 2020. In addition, the US federal Production Tax Credit (PTC) remains crucial to the wind project revenue stream, with looming uncertainty regarding the incentive's current expiration at the end of 2008.

Texas continues to serve as the hub of US wind project development activity, with over 45 GW of wind projects under development in the state. However, future growth in top US wind regions such as the Southwest, Midwest, West and Pacific Northwest hinges on the completion of numerous proposed transmission projects, according to EER. "Major transmission expansion investments on both the intra- and inter-state levels will be crucial to sustaining long-term build-out of the US market," according to Magee.

US utilities move into wind development and ownership

Between 2000 and 2007, annual utility-owned wind installations grew from just under 4 MW added in 2000 to more than 820 MW added in 2007, representing approximately 16% of the cumulative installed US wind market as of Q1 2008, according to EER.

As competition heats up, US wind independent power producers (IPPs) will need to evolve their business strategies to compete with regulated utilities such as MidAmerican, Xcel, and Alliant which are dominant in their respective territories, according to Magee.

US wind turbine supply chain growing to meet surging demand

Substantial investment in greater US wind turbine supply chain capacity will be key to wind turbine operation equipment manufacturers' ability meet the level of US wind growth anticipated in 2008 and beyond. Recent large-scale investments in third-party wind turbine blade and tower supply has created a wind turbine manufacturing "corridor" spanning from North Dakota to Texas and from eastern Colorado to Illinois, according to EER.

EER expects that the US wind turbine sales market will climb from an estimated US $12 billion in 2008 to nearly US $16 billion by 2015. With such a substantial level of revenue up for grabs, greater industry participation is guaranteed across the wind turbine value chain from major financial institutions, power and infrastructure manufacturers, and utilities and power producers.

ABOUT THE STUDY - US WIND POWER MARKETS AND STRATEGIES 2008-2020

US Wind Power Markets and Strategies 2008-2020 provides over 310 pages of market intelligence and competitive analysis of US wind power markets. Study features include: state by state analysis, market environment rankings, competitive analysis of utilities, IPPs and developers, as well as US wind turbine manufacturer and component supplier analysis. Follow this link for the study's Table of Contents and List of Exhibits. For more information please contact Stephanie Aldock at 617-551-8483 or eermedia@emerging-energy.com

ABOUT EMERGING ENERGY RESEARCH

Emerging Energy Research is a leading advisory and consulting firm analyzing clean and renewable energy markets on a global basis. EER is based in Cambridge, Massachusetts and Barcelona, Spain. Our clients - which include many of the world's largest energy companies, utilities, technology vendors, and financial institutions - seek our informed, objective view and advice on these fast developing markets. For more information visit www.emerging-energy.com