With Uncertainty Looming Over Federal Incentive,
U.S. Wind Industry Installs 1,400 MW in First Quarter
WASHINGTON, May 07, 2008 -- BUSINESS WIRE
With the fate of a key federal incentive in the balance, the U.S. wind
energy industry continued new installations at a breakneck pace in the first
quarter of 2008, putting 1,400 megawatts (MW) or approximately $3 billion
worth of new generating capacity in place, the American Wind Energy
Association (AWEA) said today in its quarterly market report.
"These new wind power plants--enough to serve the equivalent of 400,000
homes--coupled with investment in 17 new manufacturing facilities over the
past year and a quarter show that - with consistent policy support -
America's wind industry can deliver the goods in terms of clean energy and
new clean technology jobs," commented AWEA Executive Director Randall
Swisher.
"But if Congress does not act quickly, this momentum could be derailed at
the worst possible time for the economy, placing 76,000 jobs and over $11.5
billion in investment at risk," Swisher added. "While 2008 is shaping up to
be another great year, we could see a very different story in 2009 as
uncertainty looms over investment in wind power projects and manufacturing
due to continuing delay in extending the production tax credit (PTC),"
Swisher added. The PTC is the primary federal incentive for wind power, and
expires at the end of the year along with incentives for other renewable
electricity sources.
The new wind power facilities installed this quarter span 10 states and
bring total U.S. wind power capacity to over 18,000 MW, or enough to serve
the equivalent of 5 million homes. Texas added over half this new capacity
and now has well over 5,000 MW installed. Over 4,000 MW of projects are now
also under construction nationwide.
Additionally, AWEA reports an increase in the share of U.S.-made wind
turbine components--from less than 30% to approximately 50% in three years.
Prior to 2005, AWEA estimates that less than a third of components were
manufactured domestically. But the relatively stable availability of the PTC
since August 2005 has allowed U.S.-based supply chain providers to begin
establishing a much stronger foundation of domestic manufacturing for
turbine components, which range from towers and blades to gearboxes,
bearings, and electrical and electronic components. AWEA estimates that, by
the end of 2008, approximately half of turbine components for turbines
installed in the U.S. will be produced domestically. In 2007 and early 2008,
at least 17 manufacturing facilities have been brought online or expanded in
the U.S., creating over 4,000 jobs and $500 million in manufacturing
investment.
Adjustment to final numbers for megawatts of wind power installed in the
U.S. in 2007 show a slight increase to 5,249 MW, up from the 5,244 MW
announced in January. Since actual installed capacity for natural gas was
less than expected in 2007, new wind power facilities in fact made up close
to 35% of the entire new power generating capacity added in the U.S. last
year, up from the 30% initially reported in January.
In June, the WINDPOWER 2008 Conference & Exhibition will open in Houston, in
the heart of the energy capital of Texas, now the state with the largest
wind power market in the nation. WINDPOWER 2008 will be the U.S.'s biggest
wind industry show ever, with over 8,000 attendees and 700 exhibitors,
including leading global wind turbine manufacturers and many component and
supply chain providers.
For a complete list of projects and manufacturing facilities added in the
first quarter of 2008, please see the AWEA First Quarter 2008 Market Report
at www.awea.org/publications/reports/1Q-Market-Report-2008.pdf. A complete
list of existing and under construction projects is available at
www.awea.org/projects.
AWEA is the national trade association of the U.S. wind energy industry. The
association's membership includes global leaders in wind power development,
wind turbine manufacturing, and energy, as well as a broad range of
component and service suppliers. More information on wind energy is
available at the AWEA web site: www.awea.org.
SOURCE: AWEA
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