US braced for gust of wind power in 2011

www.businessgreen.com
27 January 2011

After a year in the doldrums, more wind projects now under construction than built during 2010

US wind may be on the verge of a recovery from a lacklustre 2010, after figures revealed more wind power capacity is currently being built than was installed in the whole of last year. Over 5.6GW is now under construction after only 5.1GW was built in 2010, less than half the 2009 figure, the American Wind Energy Agency (AWEA) said in its Fourth Quarter Market Report.

Around 3.2GW came online in the fourth quarter of 2010, down on the 2009 figures, but dwarfing the previous quarter when only 670MW (0.6GW) was installed, the stats said, emphasising the gap to be bridged in order to meet President Obama's 80% clean energy challenge. The AWEA attributed this rush to a one-year extension of the 1603 Investment Tax Credit for renewable energy to the end of 2011, which is likely to lend impetus to other projects eager to meet the construction deadline.

Elizabeth Salerno, AWEA director of industry data and analysis, added that electricity generated by wind is now cost-competitive with natural gas "Wind's costs have dropped over the past two years, with power purchase agreements being signed in the range of five or six cents per kW recently", Salerno said. "With uncertainty around natural gas and power prices as the economy recovers, wind's long-term price stability is even more valued. We expect that utilities will move to lock in more wind contracts, given the cost-competitive nature of wind in today's market".

However, the AWEA bemoaned what it saw as uncertainty over national policy holding the sector back and allowing China to overtake the US in installed wind capacity for the first time, posting a total of 41.8GW, compared with 40.2GW in the States. "Our industry continues to endure a boom-bust cycle because of the lack of long-term, predictable federal policies, in contrast to the permanent entitlements that fossil fuels have enjoyed for 90 years or more", said Denise Bode, chief executive of AWEA.

But the AWEA praised state-level efforts, which saw Texas pass the 10GW mark for total installations, accounting for a quarter of the country's wind capacity. A total of 38 states now have utility-scale wind projects, it said, with Iowa on 3.6GW, California on 3.2GW, Minnesota on 2.2GW and Washington on 2.1GW, completing the top five behind Texas.