|
|
The industry has experienced explosive growth in recent years. In 2005, the industry shattered records with the installation of more than 2,400 MW of wind energy, enough to supply electricity to 650,000 homes. As of Sept. 20, 2006, the total installed U.S. wind capacity was 10,492 MW, and U.S. wind farms were on track to generate 25 billion kWh of energy, or enough to supply to more than 2.3 million homes.
With high energy prices associated with new thermal power plants and the increasing momentum toward a national Renewable Portfolio Standard (RPS), wind energy has a bright future in the U.S. and around the world. Currently, at least 20 states and the District of Columbia have some form of RPS, which requires states to derive a minimum percentage of electric power from renewable energy sources by a certain target date. Among them are California, New York, Texas, Pennsylvania, Massachusetts, and Minnesota. Over nine-tenths of the new capacity built for state mandates was wind power (93 percent).
With the recent extension of the Production Tax Credit through 2007, and with a likely extension for 2008 and beyond in the works, the industry is poised for significant growth.
Wind power is a reality today. This increasingly competitive source of energy can:
- Provide at least six percent of the nation's electricity by 2020
- Revitalize farms and rural communities
- Reduce volatility in natural gas prices - without consuming any natural resource or emitting any pollution or greenhouse gases.
|
| Wind Energy Outlook 2006, American Wind Energy Association |
“Given America’s enormous wind resources, wind energy’s improving economics, and growing environmental awareness, the market could over time support new installations of 10,000 MW (serving approximately 2.5 million homes) each year. The 20-percent level of contribution to the nation’s electricity supply envisioned by President Bush in 2006 is certainly achievable. Already, wind power is boosting energy security, reducing pollution, creating high-tech jobs, and revitalizing farms and rural communities in the vast, wind-rich American heartland.”
|
Renewable Portfolio Standard
At least 20 states, including California, New York, Pennsylvania, and Texas, plus the District of Columbia, are now under pressure to comply with mandates for renewable energy, which are expected to provide for over 12,400 MW of new renewable power by 2012.
Economics
(vs. Natural Gas & Oil)
The sharp increases in natural gas and oil prices have made wind energy more competitive.
Production Tax Credit
1.5 cents per kilowatt-hour tax credit, available for 10 years from initial plant operation; indexed for inflation, worth 1.9 cents for the 2007 tax year.
Environmental Requirements, Green Tags
Purchasers can offset a portion of the carbon dioxide and other greenhouse gas emissions and get credit for purchasing a percentage of their power from renewable sources.
Fuel Price Volatility
Long-term wind power purchase agreements can be signed at fixed kWh prices; thereby avoiding the exposure to highly volatile natural gas and oil prices.
Energy Security
Studies have found that a 20-percent U.S. renewable standard by 2020 would reduce natural gas use by 6 percent, while saving nearly $27 billion, and reducing imports significantly.
Technology
is making wind power more efficient and cost effective.
Consumer Demand
for non-polluting, renewable "green" energy.
|
|
|
