Energy futureU.S. wind power generation expands 45% in 2007

Published 22 January 2008

Rapid increase in U.S. wind power generation capacity sees 45 percent growth in 2007, injecting $9 billion into U.S. economy; growth of wind power accounts for 30 percent of the entire new power-producing capacity added nationally in 2007

Perhaps the answer is not blowing in the wind, but still: Shattering all its previous records, the U.S. wind energy industry installed 5,244 megawatts in 2007, expanding the nation’s total wind power generating capacity by 45 percent in a single calendar year and injecting an investment of more than $9 billion into the economy, the American Wind Energy Association (AWEA) has said in a just-published report. The new wind projects account for about 30 percent of the entire new power-producing capacity added nationally in 2007 and will power the equivalent of 1.5 million American households annually while strengthening U.S. energy supply with clean, homegrown electric power. The U.S. wind power fleet now numbers 16,818 MW and spans 34 states. American wind farms will generate an estimated 48 billion kilowatt-hours (kWh) of wind energy in 2008, just over 1 percent of U.S. electricity supply, powering the equivalent of over 4.5 million homes. AWEA points out that this wind power also:

* Helps protect consumers from increases in electricity costs due to volatile fuel prices and supply disruptions: By reducing the use of natural gas and other fuels used for electricity generation, and lowering the pressure on their price, wind can save consumers money, even in regions with low or no wind resources

* Reduces global warming emissions: To generate the same amount of electricity using the average U.S. power plant fuel mix would cause over 28 million tons of carbon dioxide (CO2) to be emitted annually

* Conserves precious water resources: Wind farms do not need water for steam or for cooling, a benefit that is increasingly valuable in arid areas and in times of drought

Wind power’s strong performance is expected to continue this year, with AWEA’s initial estimates indicating that 2008 could equal 2007 in new wind capacity installed. Developers report that with strong demand for wind power across the country, wind turbines are sold out for the year (as we wrote in December, one problem facing the growth of wind power world-wide is the currently limited manufacturing capacity of wind turbines). AWEA projects, however, that with more companies entering the market, more turbines will become available. The pace of growth in 2008 and beyond is expected to largely depend, not on turbine availability, but on the timing and duration of an extension of the federal production tax credit.

Other report highlights:

* Installations in the last quarter of 2007 alone (2,930 MW) surpassed the amount installed in all of 2006 (2,454 MW)

* Texas consolidates its lead; wind power also expands at a strong pace in Midwest and Northwest. The states with the most cumulative wind power capacity installed are:

Texas — 4356 MW

California — 2439 MW

Minnesota — 1299 MW

Iowa — 1273 MW

Washington — 1163 MW

* Investment is flowing into the wind power supply chain. At least fourteen new manufacturing facilities opened or were announced in 2007, according to initial AWEA estimates. Companies are opening new manufacturing plants and expanding existing ones, creating new jobs and business opportunities across the country, even in states that do not have a large wind resource

* GE Energy continued to lead in wind turbine sales, with 45 percent of the market in terms of new capacity installed. FPL Energy remained atop the list of wind project developers, with 956 MW of new development in 2007 alone

The full annual report is available on the AWEA Web site and a state-by-state listing of existing and proposed wind energy projects is available at .