Wind energy in the United States is poised to make a comeback in 2011 despite a sluggish performance in 2010 with the extension of federal renewables support and notable decisions for onshore and offshore wind development, says the American Wind Energy Association.
«While the industry saw the all-too-real impacts of having no long-term U.S. policies toward renewable energy, the industry nevertheless made significant advances in 2010,» said Denise Bode, the association’s chief executive.
In a milestone decision, the Department of the Interior approved the construction of the 468-megawatt Cape Wind Energy Project on Massachusetts waters in April, concluding a legal undertaking which has stretched over nearly 10 years.
The $1 billion wind farm will be capable of powering 200,000 local homes while offsetting approximately 700,000 tons of carbon dioxide each year.
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Consequently, Secretary Salazar and Cape Wind Associates L.L.C. finalized the country’s first lease for commercial wind development on the Outer Continental Shelf in October, opening an expanse of 25 square miles for offshore wind development through a 28-year period.
Proponents consider this a catalyst for the continuation of offshore renewable energy development, with plans to expedite the process of reviewing and approving offshore wind applications.
The wind industry also noted President Barack Obama’s extension of the renewable energy tax credit program through 2011 by approving the 2010 tax relief bill in December. This measure allocates $3 billion of the federal budget for renewable energy support, which will be made available through the tax credit program.
According to the wind energy association, the program will help increase wind installations by approximately 50 percent each year while providing support to other clean energy industries.
The Federal Energy Regulatory Commission also approved a proposal by the Midwest Independent System Operator to establish a new scheme that identifies the benefits of each project proposal to the region.
Under the new scheme, the system operator can independently review each transmission project and determine whether or not it supports a public policy requirement or provides grid reliability and economic benefits to multiple transmission zones.
Additionally, the system requires generator interconnection projects to share the costs of network upgrades on which they mutually rely on. Addition of new transmission infrastructure will allow for the expansion of wind energy and improved grid-reliability, the association said.
Strong forces
Meanwhile, the United States small wind market expanded at a healthy rate despite the global economic downturn, posting a 15 percent growth rate in 2009.
The association’s Small Wind Turbine Global Market Study says the market for wind turbines with rated capacities of 100 kilowatts and below added 20.3 MW of new capacity and raked in $82.4 million in sales despite the global recession.
State renewable energy targets have encouraged the establishment of over 1 GW of wind capacity with 37 states bearing utility-scale wind power within their jurisdictions.
For example, Iowa sourced 20 percent of its electricity mix from wind power in 2010, a 6 percent raise from 2009. Indiana installed 111 MW during the third quarter of 2010, nabbing the top 10 spot among wind power states.
The country also reinforced its manufacturing capacity in 2010 with new facilities opening across the country. New nacelle assembly plants have risen in several states including Kansas, Arkansas and Texas to push the total of operational manufacturing plants in the country to over 400.
Still lagging
However, the country still lags behind China and Europe in the global wind market despite the notable developments.
The lack of long-term energy policies such as a national renewable electricity standard stirred uncertainty among green businesses. This led to a dismal output of 395 megawatts of additional capacity in the third quarter of 2010 – the industry’s slowest quarter since 2007.
New wind installations dropped to almost 50 percent of 2009, prompting the wind association to estimate that the total 2010 output of the industry would be three times less than China’s and twice less than Europe’s.
“Factors in the U.S. decline included an absence of long-term U.S. energy policies, resulting in an unstable business environment, and utilities being less eager to enter wind energy power purchase agreements,” said the association.
