US adds record-breaking wind capacity in 2009

www.environmental-finance.com
29 January 2010

Almost 10GW of wind energy capacity was added last year in the US, according to figures from the American Wind Energy Association (AWEA), breaking all records – and despite the global economic strife in 2009. "The US wind energy industry shattered all installation records in 2009, chalking up the Recovery Act as a historic success in creating jobs, avoiding carbon and protecting consumers," said AWEA CEO Denise Bode. "From our perspective, it's the biggest year in terms of additional capacity ever," Tim Stephure, Massachusetts-based wind energy analyst at Emerging Energy Research (EER), told Environmental Finance. "It was impressive … especially in the face of recession and one of the worst economic crises of our time."

However, he warned that similar growth may be difficult this year, with power demand still lower than before the onset of recession, making it harder for wind energy generators to secure long-term power purchase agreements with utilities. "Any federal clarity in regard to policy with renewables would help," Stephure said, such as a federal Renewable Portfolio Standard that would oblige utilities to source a certain proportion of renewable energy.

In total, 9,922MW of capacity was built, upping the country's installed capacity by 39% to just over 35,000MW, said Washington, DC-based AWEA. Texas led the way, with an additional 2,292MW installed, more than double the 905MW installed in Indiana, the second-most last year. Texas also has the most total wind energy capacity of any other state, at 9,410MW. But Stephure at the EER warned not to take the figures at face value as the collapse of the financial system in 2008 forced around 4GW-worth of projects to delay construction until last year. "That said, it was still a strong year in 2009, driven especially by policy initiatives," he said.

He noted that wind energy projects were awarded an estimated $1.89 billion of the $2.1 billion of grants given by the US Treasury last year as investment tax credits instead of production tax credits, as a way of keeping the sector afloat by providing finance up-front. Wind manufacturers have also benefited seperately from grants of $350 million, Stephure added. However, the AWEA said that investment in US wind manufacturing dropped in 2009 compared with 2008. Bode called for "long-term policy certainty and market pull" to allow that segment to grow. "The wind energy sector is seen in many jurisdictions … as a way to revive the economy," commented Stephure.