Wind installations in 2007 were not only the largest on record in the United States, but were more than twice the previous U.S. record, set in 2006. No country, in any single year, has added the volume of wind capacity that was added to the United States electrical grid in 2007. Federal tax incentives, state renewables portfolio standards (RPS), concern about global climate change, and continued uncertainty about the future costs and liabilities of natural gas and coal facilities helped spur this intensified growth. The yearly boom-and-bust cycle that characterized the U.S. wind market from 1999 through 2004-caused by periodic, shortterm extensions of the federal production tax credit (PTC)-has now been replaced by three consecutive years of sizable growth. With the PTC currently (as of early-May 2008) set to expire at the end of the year, 2008 is expected to be another year of sizable capacity additions. Unless the PTC is extended before mid-to-late 2008, however, a return to the boom-and-bust cycle can be expected in 2009.
Despite grim predictions at the close of 2008, the U.S. wind power industry experienced yet another record year in 2009, once again surpassing even optimistic growth projections from years past. At the same time, the combination of the financial crisis and lower wholesale electricity prices has taken a toll on the wind power industry, dampening expectations for 2010. Key findings from this year's Wind Technologies Market Report include: • Wind Power Additions in 2009 Shattered Old Records, with roughly 10 Gigawatts (GW) of New Capacity Added in the United States and $21 Billion Invested. The pace of utility-scale wind power capacity additions in 2009 was 20% higher than the previous U.S. record set in 2008, while cumulative wind power capacity grew by 40%. This was achieved despite the financial crisis that roiled the wind power industry in 2009, and the significant reductions in wholesale electricity prices that began in mid-to late-2008 and have continued to the present. A variety of market drivers allowed year-on-year installation growth to persist in 2009, including: carryover of projects initially planned for completion in 2008; elements of the American Recovery and Reinvestment Act of 2009 (Recovery Act), including the Section 1603 Treasury Grant Program; the expiration of bonus depreciation rules at the end of 2009; and state renewables portfolio standards. Note: Numbers within states represent cumulative installed wind capacity and, in parentheses, annual additions in 2009.
Annual wind power capacity additions in the United States achieved record levels in 2012, motivated by the then-planned expiration of federal tax incentives at the end of 2012 and recent improvements in the cost and performance of wind power technology. At the same time, even with a short-term extension of federal tax incentives now in place, the U.S. wind power industry is facing uncertain times. It will take time to rebuild the project pipeline, ensuring a slow year for new capacity additions in 2013. Continued low natural gas prices, modest electricity demand growth, and limited near-term demand from state renewables portfolio standards (RPS) have also put a damper on industry growth expectations. In combination with global competition within the sector, these trends continue to impact the manufacturing supply chain. What these trends mean for the medium to longer term remains to be seen, dictated in part by future natural gas prices, fossil plant retirements, and policy decisions, although recent declines in the price of wind energy have boosted the prospects for future growth. Key findings from this year's Wind Technologies Market Report include: • Wind Power Additions Hit a New Record in 2012, with 13.1 GW of New Capacity Added in the United States and $25 Billion Invested. Wind power installations in 2012 were more than 90% higher than in 2011 and 30% greater than the previous record in 2009. Cumulative wind power capacity grew by 28% in 2012, bringing the total to 60 GW. • Wind Power Represented the Largest Source of U.S. Electric-Generating Capacity Additions in 2012. Wind power constituted 43% of all nameplate capacity additions in 2012, overtaking natural gas-fired generation as the leading source of new capacity. This follows the 5 previous years in which wind power represented between 25% and 43% of new U.S. electric generation capacity in each year.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.