Washington (Platts)--29May2008

The US was the fastest growing wind-power market in the world for the
third straight year in 2007, with a 46% increase in wind capacity and $9
billion in new investments, the US Department of Energy said in a report
released Thursday.

"The report also showed that wind is on a path to becoming a significant
contributor to the US power mix," DOE said of the Annual Report on US Wind
Power Installation, Cost and Performance Trends. "Wind projects accounted for
35% of all new US electric generating capacity in 2007, and transmission
facilities capable of generating a total of over 200 GW of wind power are in
the early stages of development throughout the nation."

US wind capacity was 16,904 MW in 2007, including 5,329 MW added last
year, DOE said.

DOE's assistant secretary for energy efficiency and renewable energy,
Alexander Karsner, hailed the report as evidence that the Bush
administration's goal of meeting 20% of US electricity needs through wind by
2030 is achievable.

"We are eager to continue the trend of increasing the use of wind power
at unprecedented rates," Karsner said.

The US met 1.2% of its electricity demand through wind power in 2007, the
report said.

Among its other findings, the report said wind-power growth is
distributed across much of the US, with Colorado, Illinois, Texas and Oregon
among the leading states in capacity growth in 2007. Nine states had enough
wind capacity last year to account for more than 3% of their total electricity
generation, the report said.

Market growth is spurring manufacturing investments in the US, the report
said. Several major foreign wind turbine manufacturers either opened or
announced new US plants in 2007, and new and existing US-based manufacturers
either started or scaled up production.

At the same time, the costs of wind turbines and projects have risen
since 2002, driven by weakness in the dollar, higher prices for materials and
shortages of components, the report said.

--Bill Loveless, bill_loveless@platts.com