US wind power capacity tops 10,000MW

New York, 17 August: Wind energy capacity in the US now exceeds 10,000MW, according to the American Wind Energy Association (AWEA).

The growth has been driven partly by concerns about fuel price volatility, according to the Washington-based AWEA. Utilities welcome the price stability of wind, as do regulators, said AWEA spokeswoman Kathy Belyeu.

Another driver is the proliferation of state renewable portfolio standards (RPS), requiring utilities to source certain percentages of energy from renewables, Belyeu added. The AWEA has not estimated how much wind capacity growth is linked to RPS mandates.

At the same time, the cost of wind energy has become attractive, she said, noting that power from wind costs 4-7 cents/kWh, after applying the 1.9 cents/kWh federal production tax credit (PTC). That is higher than coal power, at 3 cents/kWh, but competitive with gas-fired plants, whose fuel costs have risen steeply in recent years.

The 2005 renewal of the PTC has stimulated development, but the credit expires at the end of 2007, and the group is urging Congress to extend the measure for a longer term. In the past, the PTC has expired three times before Congress renewed it, and this "on-again, off-again" cycle has discouraged investment, it says.

Wind accounts for less than 1% of the nation's 985,285MW of power generating capacity, the AWEA notes. But new plant built in 2006 alone should reach 3,000MW, exceeding the entire US wind fleet in 2000.

By the end of 2007, AWEA expects 15,000MW to be installed and, by the end of 2010, 25,000MW. At that rate, the US could have 100,000MW of wind energy capacity by 2020, which would provide 6% of its power, or approximately as much as hydropower provides today.

The AWEA says the 10,000MW of wind farms prevent the annual emission of 16 million tons of carbon dioxide, 73,000 tons of sulphur dioxide and 27,000 tons of nitrogen oxides, by displacing other forms of generation.