Energy Dept. Reports: U.S. Wind Energy Production
and Manufacturing Reaches Record Highs
Aug 6, 2013 - energy.gov
WASHINGTON – The Energy Department released
two new reports today showcasing record growth across
the U.S. wind market -- increasing America’s
share of clean, renewable energy and supporting tens
of thousands of jobs nationwide. According to these
reports, the United States continues to be one of
the world’s largest and fastest growing wind
markets. In 2012, wind energy became the number one
source of new U.S. electricity generation capacity
for the first time – representing 43 percent
of all new electric additions and accounting for
$25 billion in U.S. investment.
In the first four years of the Obama Administration,
American electricity generation from wind and solar
power more than doubled. President Obama’s
Climate Action Plan makes clear that the growth of
clean, renewable wind energy remains a critical part
of an all-of-the-above energy strategy that reduces
harmful greenhouse gas emissions, diversifies our
energy economy and brings innovative technologies
on line. The Obama Administration has committed to
another doubling of the renewable electricity generation
from energy resources like wind power by 2020.
“The tremendous growth in the U.S. wind industry
over the past few years underscores the importance
of consistent policy that ensures America remains
a leader in clean energy innovation,” said
Energy Secretary Ernest Moniz. “As the fastest
growing source of power in the United States, wind
is paving the way to a cleaner, more sustainable
future that protects our air and water and provides
affordable, clean renewable energy to more and more
Americans.”
The tremendous growth in the overall U.S. wind industry
has led directly to more American jobs throughout
a number of sectors and at factories and power plants
across the country. According to industry estimates,
the wind sector employs over 80,000 American workers,
including workers at manufacturing facilities up
and down the supply chain, as well as engineers and
construction workers who build wind installations.
Wind Technologies Market Report
The Energy Department and Lawrence Berkeley National
Laboratory today released the 2012 Wind Technologies
Market Report – detailing the latest trends
in the U.S. wind power market.
Last year, over 13 gigawatts (GW) of new wind power
capacity were added to the U.S. grid – nearly
double the wind capacity deployed in 2011. This tremendous
growth helped America’s total wind power capacity
surpass 60 GW at the end of 2012 – representing
enough capacity to power more than 15 million homes
each year, or as many homes as in California and
Washington state combined. The country’s cumulative
installed wind energy capacity has increased more
than 22-fold since 2000.
At the same time, the proportion of wind turbine
components such as towers, blades, and gears made
in America has increased dramatically. The report
estimates seventy-two percent of the wind turbine
equipment installed in the U.S. last year was made
by domestic manufacturers, nearly tripling from 25
percent in 2006-2007.
The report also finds that nine states now rely
on wind power for more than 12 percent of their total
annual electricity consumption – with wind
power in Iowa, South Dakota and Kansas contributing
more than 20 percent. Additionally, Texas added over
1,800 megawatts of wind power last year, more than
any other state. On a cumulative basis, Texas remains
a clear leader with over 12 GW installed at the end
of 2012 -- more than twice as much as California,
the next-highest state.
Also according to the Energy Department’s
2012 Wind Technologies Market Report, technical and
design innovation allowing for larger wind turbines
with longer, lighter blades has steadily improved
wind turbine performance and has expanded wind energy
production to less windy areas. Since 1998, the average
capacity of wind turbines in the U.S. has increased
by 170 percent. At the same time, wind project capital
and maintenance costs continue to decline, lowering
the cost of wind energy to near-record lows. The
price of wind under long-term power purchase contracts
signed in 2011 and 2012 averaged 4 cents per kilowatt
hour – making wind competitive with a range
of wholesale electricity prices seen in 2012.
Distributed Wind Market Report
For the first time, the Energy Department and Pacific
Northwest National Laboratory today issued the 2012
Market Report on Wind Technologies in Distributed
Applications – highlighting strong growth in
the U.S. distributed wind energy market.
Compared to traditional, centralized power plants,
distributed wind energy installations directly supply
power to the local grid near homes, farms, businesses
and communities– helping to improve grid reliability
and efficiency. Turbines used in these applications
can range in size from a few hundred watts to multi-megawatts,
and can help power remote, off-grid homes and farms
as well as local schools and manufacturing facilities.
Over the past ten years, the U.S. distributed wind
market has grown more than five-fold.
The report finds that distributed wind in the U.S.
reached a 10-year cumulative installed capacity of
more than 812 megawatts (MW) at the end of 2012 – representing
more than 69,000 units across all 50 states. Between
2011 and 2012, U.S. distributed wind capacity grew
by 175 MW, with about 80 percent of this growth coming
from utility-scale installations. At the state level,
Iowa, Massachusetts, California and Wisconsin led
the nation in new distributed wind power capacity
in 2012.
Still, most distributed wind buyers continue to
choose small wind turbines, which have a rated capacity
of no greater than 100 kilowatts. Last year, domestic
sales from U.S. wind suppliers accounted for nearly
90 percent of new small wind generation capacity.
Broadly, nine out of the top ten wind turbine models
installed last year in U.S. distributed applications
were made in America.
The wind sector’s growth underscores the importance
of continued policy support and clean energy tax
credits to ensure that wind manufacturing and jobs
remain in America. The 2012 Wind Technologies Market
Report expects 2013 to be a slow year for new capacity
additions, due in part to continued policy uncertainty
and project development timelines. While the report
notes that 2014 is expected to be more robust, as
developers commission projects that will begin construction
in 2013, it also notes that projections for 2015
and beyond are much less certain.
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