WASHINGTON, Oct. 31, 2011 — Wind energy is more affordable than ever, and new installations across the country are saving consumers money on their electric bills, as utilities rush to lock in long-term favorable rates.
“This is what a successful business looks like with stable tax policy. Utilities are locking in a great deal for their electric customers while it’s available. We’re keeping rates down all across the U.S., even in the heart of the South,” said Denise Bode, CEO of the American Wind Energy Association (AWEA), pointing to recent wind power purchases by the Southern Co. in Alabama, Austin Energy in Texas, and Xcel in Colorado as examples.
The U.S. wind industry installed just over 1,200 megawatts (MW) in the third quarter, and about 3,360 MW on the year so far – but has more than 8,400 MW under construction. That is more than in any quarter since 2008, as the federal Production Tax Credit has driven as much as $20 billion a year in private investment.
“This shows what we’re capable of: adding new, affordable electric generation,” said Bode. “Traditional tax incentives are working. There’s a lot of business right now, people are employed, and manufacturers are looking to expand here in the U.S.”
The third-quarter results released today by AWEA indicate the year will finish strong, somewhere between the industry’s high point of 2009 and the recent dip in 2010 amid turmoil in federal tax policy.
Years of technological innovations and an influx of U.S.-based manufacturing have driven down the cost of wind energy and saved further on transportation. Including incentives, which all forms of energy get, U.S. wind is now close to cost-competitive with all other energy sources – even shale gas at today’s unsustainable prices.
Even so, policy uncertainty has many leading wind developers saying they have no projects scheduled for 2013, which is starting to threaten both development companies and the U.S. wind energy supply chain.
“In hard economic times we’re delivering affordable power to ratepayers,” Bode stressed. “A lot of people will be surprised by how inexpensive wind energy rates are now, because it’s happened so fast.” But she cautioned, “We could lose all these consumer benefits and a brand new, growing manufacturing sector if Congress allows the Production Tax Credit to expire.”
Bode said she’ll be asking lawmakers, “Do you want to raise rates on consumers in a bad economy by raising taxes on wind? Do you want to be the one to say that we just shut down a new manufacturing sector, and an industry that could support 500,000 jobs in less than 20 years, just as it was getting a foothold in the U.S. market?”
Data highlights:
Other highlights of the U.S. Wind Industry Third Quarter Market Report 2011 that AWEA released include:
The U.S. industry during the third quarter installed 1,204 megawatts (MW) of electrical generating capacity versus 671 MW during the same period last year, up 79%.
Year-to-date installations of 3,360 MW exceed installations as this point in 2010 by 75%.
In the third quarter of 2011, Colorado installed the most new wind capacity, with 501 MW; then Minnesota with 103 MW; Oklahoma with 130 MW; West Virginia with 98 MW; and Texas rounding out the top 5 states with 88 MW.
More than 2,000 MW of new construction were started during the third quarter, bringing total under construction figures to over 8,400 MW, one of the largest under construction figures since the height in 2008.
Significant under-construction numbers were reported in numerous states: More than 1,200 MW are under construction in California; more than 800 MW in in Oregon; over 700 MW in Oklahoma and Iowa; and over 600 MW in Illinois, Kansas, and Washington.
The U.S. wind industry now totals 43,461 MW of cumulative wind capacity, able to supply electricity to the equivalent of 10 million American homes and producing 3% of the nation’s electricity through July of 2011.
The third quarter market report can be found here: http://www.awea.org/learnabout/publications/reports/AWEA-US-Wind-Industry-Market-Reports.cfm. AWEA member companies can access a members-only version of the report by logging on to the member center at awea.org.