The wind industry installed 1,194 megawatts (MW) in the United States during the second quarter of 2008, down from 1,532 MW during the first quarter, according to the American Wind Energy Association´s (AWEA) most recent market report.
Nonetheless, the U.S. generates more electricity from wind than any other
nation in the world, with an installed capacity of 19,549 MW, and development is on track to increase another
45% this year, the AWEA said.
The AWEA also stressed that the expiration of the federal production tax credit (PTC) less than five months from now threatens this growth.
"The U.S. is now the world’s largest wind energy producer, with wind development sparking job creation and economic opportunity in a troubled economy," said AWEA Executive Director Randall Swisher. "But the current figures hide a dire reality: the pipeline of investment for 2009 has been on hold for months, with escalating risks and costs for the industry, because of the uncertainty about the production tax credit. At a time when unemployment is at a 4-year high and the economy needs every stimulus it can get, a rapid extension of the credit should be on any economic priority list for Congress."
Market for Small Wind Turbines Grows
The AWEA also released figures that showed the U.S. market for small wind turbines grew 14% and deployed 9.7 MW of new power generating capacity in 2007. Small wind systems have rated capacities of less than 1 kilowatt (kW) up to 100 kW and are used for a broad range of applications, from charging batteries on sailboats and recreational vehicles to powering individual homes, farms, and small businesses.
According to the AWEA more than 9,000 small wind turbine units were
sold in 2007, with total sales value of $42 million. About 50 companies
manufacture or plan to manufacture small wind systems in the U.S., and
exports account for about 40% of U.S. small wind system manufacturers’
sales.
Currently, there are no federal incentives in place for small wind systems. Several states have incentives for small wind, and, not surprisingly, they are also the states with the largest small wind system markets. Impractical and prohibitive zoning practices, as well as balkanized grid interconnection standards, pose additional barriers to growth, the AWEA said.
The AWEA and small wind system advocates are calling for a 30% federal Investment Tax Credit (ITC). Such a credit could lead to an estimated 40%-50% annual growth, similar to the growth in the solar photovoltaic (PV) market following the adoption of a federal ITC for solar in 2005.
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