Wind energy supplies over 2% of total U.S. electricity and more than 10% of total electricity in four states.
In 2010, wind accounted for 25% of new electricity capacity, representing $11 billion in investments.
The US has lost its lead to China as the fastest growing wind market, but it’s still number 2.
Still, 2010 was a trying year. New wind capacity was much less than in 2008 and 2009, because of the "delayed impact of the global financial crisis, relatively low natural gas and wholesale electricity prices, and slumping overall demand for energy," says Ryan Wiser, one of the authors of a DOE Lawrence Berkeley Lab study released this week.
As a result, roughly 5 gigawatts (GW) of new wind capacity were connected to the U.S. grid in 2010, compared to nearly 10 GW in 2009 and over 8 GW in 2008.
The 2010 edition of the DOE’s "Wind Technologies Market Report" finds:
• Wind turbine manufacturers continue to locate here because of the size and promise of the U.S. market.
Nine of the 11 wind turbine manufacturers with the largest share of the U.S. market in 2010 now have one or more manufacturing facilities here, up from just one such manufacturer in 2004.
This manufacturing expansion combined with the drop in wind installations resulted in roughly 2.5 GW of overcapacity in 2010, compared to 4 GW of under-capacity in 2009.
• As a result, a growing percentage of the equipment used in U.S. wind power projects is domestically manufactured.
Local wind manufacturing growth is now outpacing imports, which have declined significantly from 65% in 2005-2006 to roughly 40% in 2009-2010.
• Wind turbine prices have dropped substantially since 2008.
Price quotes for recent wind turbine transactions are in the $900-$1,400 per kilowatt range – a 33% or more price decline since late 2008.
• Technological advancements have improved wind turbine performance, particularly at lower wind speed sites.
Since 1998-1999, the average nameplate capacity of wind turbines installed in the U.S. has increased 151% (to 1.8 MW in 2010), the average turbine hub height is up 43% (to 80 meters), and the average rotor diameter is 76% larger (to 84 meters).
• These price decines coupled with improved turbine technology should reduce total project costs and wind electricity prices over time.
These price declines weren’t evident for projects installed in 2010, because the turbines had been ordered at higher prices in previous years.
Early indications from the most recent projects, however, show the promise of substantial cost and price reductions, thereby improving the industry’s competitive position.
• Modest growth is expected for 2011 and 2012.
Lower prices for wind turbines and their resulting electricity, along with key federal incentives for wind energy in place through 2012, should lead to stronger growth than in 2010, especially in 2012.
The full report, "2010 Wind Technologies Market Report", a presentation slide deck that summarizes the report, and an Excel workbook that contains much of the data underlying the report, are available here:
Loading...