According to the Department of Energy's "2010 Wind Technologies Market Report" that was just released, the U.S. wind energy market took a hit in 2010. The report does go on to put the cause on the U.S economic downturn.
From the report:
The U.S. wind power industry experienced a trying year in 2010, with a significant reduction in new builds compared to both 2008 and 2009. The delayed impact of the global financial crisis, relatively low natural gas and wholesale electricity prices, and slumping overall demand for energy countered the ongoing availability of existing federal and state incentives for wind energy deployment. The fact that these same drivers did not impact capacity additions in 2009 can be explained, in part, by the “inertia” in capital-intensive infrastructure investments: 2009 capacity additions were largely determined by decisions made prior to the economy-wide financial crisis that was at its peak in late 2008 and early 2009, whereas decisions on 2010 capacity additions were often made at the height of the financial crisis. Cumulative wind power capacity still grew by a healthy 15% in 2010, however, and most expectations are for moderately higher wind power capacity additions in 2011 than witnessed in 2010, though those additions are also expected to remain below the 2009 high.
Key findings from this year’s “Wind Technologies Market Report” include:
• Wind Power Additions Slowed in 2010, with Roughly 5 GW of New Capacity Added in the United States and $11 Billion Invested.
• Wind Power Comprised 25% of U.S. Electric Generating Capacity Additions in 2010.
• The United States Was Overtaken by China in Cumulative Wind Power Capacity, Remained the Second Largest Market in Annual Additions, and Was Well Behind the Market Leaders in Wind Energy Penetration.
• Texas Once Again Added More New Wind Power Capacity than Any Other State, While Four States Exceed 10% Wind Energy Penetration.
• Offshore Wind Power Project and Policy Developments Continued in 2010.
• Data from Interconnection Queues Demonstrate that an Enormous Amount of Wind Power Capacity Is Under Consideration.
• GE Remained the Top Turbine Manufacturer in the U.S. Market. GE secured 50% of
• Domestic Wind Turbine and Component Manufacturing Activity Has Increased, but Has Also Been Challenged by the Economic Downturn.
• A Growing Percentage of the Equipment Used in U.S. Wind Power Projects Has Been Sourced Domestically in Recent Years.
• The Average Nameplate Capacity, Hub Height, and Rotor Diameter of Installed Wind Turbines Increased.
• Consolidation among Wind Project Developers Continued, Albeit at a Slower Pace.
• The Project Finance Environment Improved Throughout 2010.
• IPP Project Ownership Remained Dominant, while Utility and Community Ownership Held Steady.
• Long-Term Contracted Sales to Utilities Remained the Most Common Off-Take Arrangement, but Scarcity of Power Purchase Agreements Drove Continued Merchant Development.
• Wind Power Prices from Projects Installed in 2010 Were Higher, but Relief Is on the Way.
• Low Wholesale Electricity Prices Continued to Challenge the Relative Economics of Wind Power Plants Installed in Recent Years.
• The Average Installed Cost of Wind Power Projects Held Steady in 2010, but Is Expected to Decline in the Near Term.
• Wind Turbine Prices Have Declined Since 2008 and Will Yield Lower Project-Level Installed Costs and Power Sales Prices in the Years Ahead.
• Wind Power Project Performance Has Generally Improved Over Time, but Has Leveled Off in Recent Years.
• Operations and Maintenance (O&M) Costs Are Affected by the Age and Commercial Operation Date of the Project.
• Extension of the Treasury Grant Program and Bonus Depreciation Provides Some Measure of Federal Policy Certainty Through 2012.
• State Policies Play a Role in Directing the Location and Amount of Wind Power Development.
• Despite Progress on Overcoming Transmission Barriers, Constraints Remain.
• Operators Are Implementing Methods to Accommodate Increased Penetration.
With federal incentives for wind energy in place through 2012, an improved project finance environment, and lower wind turbine and wind power pricing, modest growth in annual wind power capacity additions appears likely for 2011 relative to 2010. Additions are expected to remain well below the 2009 high, however, due in part to relatively low wholesale electricity prices and limited need for new electric capacity additions, and in part to existing state-level RPS programs that, in aggregate, are not sizable enough to support continued wind power capacity additions at 2008 and 2009 levels. Most projections show further growth in 2012, as the cost of wind energy continues to decline as a result of lower wind turbine pricing, and as wind project developers rush to capture federal incentives currently slated to expire at the end of that year. Forecasts for 2013, meanwhile, span a particularly wide range, depending in part on assumptions about the possible extension of federal incentives beyond 2012, but in general are weighed down by current policy uncertainty as well as the expected limited need for new electric capacity additions. Integrating Wind Energy into Power Systems Is Manageable, but Not Free of Costs, and System.
To read the report http://www.windpoweringamerica.gov/pdfs/2010_annual_wind_market_report.pdf
To make green a reality visit http://www.thesolarandwindexpo.com/
Key findings from this year’s “Wind Technologies Market Report” include:
• Wind Power Additions Slowed in 2010, with Roughly 5 GW of New Capacity Added in the United States and $11 Billion Invested.
• Wind Power Comprised 25% of U.S. Electric Generating Capacity Additions in 2010.
• The United States Was Overtaken by China in Cumulative Wind Power Capacity, Remained the Second Largest Market in Annual Additions, and Was Well Behind the Market Leaders in Wind Energy Penetration.
• Texas Once Again Added More New Wind Power Capacity than Any Other State, While Four States Exceed 10% Wind Energy Penetration.
• Offshore Wind Power Project and Policy Developments Continued in 2010.
• Data from Interconnection Queues Demonstrate that an Enormous Amount of Wind Power Capacity Is Under Consideration.
• GE Remained the Top Turbine Manufacturer in the U.S. Market. GE secured 50% of
• Domestic Wind Turbine and Component Manufacturing Activity Has Increased, but Has Also Been Challenged by the Economic Downturn.
• A Growing Percentage of the Equipment Used in U.S. Wind Power Projects Has Been Sourced Domestically in Recent Years.
• The Average Nameplate Capacity, Hub Height, and Rotor Diameter of Installed Wind Turbines Increased.
• Consolidation among Wind Project Developers Continued, Albeit at a Slower Pace.
• The Project Finance Environment Improved Throughout 2010.
• IPP Project Ownership Remained Dominant, while Utility and Community Ownership Held Steady.
• Long-Term Contracted Sales to Utilities Remained the Most Common Off-Take Arrangement, but Scarcity of Power Purchase Agreements Drove Continued Merchant Development.
• Wind Power Prices from Projects Installed in 2010 Were Higher, but Relief Is on the Way.
• Low Wholesale Electricity Prices Continued to Challenge the Relative Economics of Wind Power Plants Installed in Recent Years.
• The Average Installed Cost of Wind Power Projects Held Steady in 2010, but Is Expected to Decline in the Near Term.
• Wind Turbine Prices Have Declined Since 2008 and Will Yield Lower Project-Level Installed Costs and Power Sales Prices in the Years Ahead.
• Wind Power Project Performance Has Generally Improved Over Time, but Has Leveled Off in Recent Years.
• Operations and Maintenance (O&M) Costs Are Affected by the Age and Commercial Operation Date of the Project.
• Extension of the Treasury Grant Program and Bonus Depreciation Provides Some Measure of Federal Policy Certainty Through 2012.
• State Policies Play a Role in Directing the Location and Amount of Wind Power Development.
• Despite Progress on Overcoming Transmission Barriers, Constraints Remain.
• Operators Are Implementing Methods to Accommodate Increased Penetration.
With federal incentives for wind energy in place through 2012, an improved project finance environment, and lower wind turbine and wind power pricing, modest growth in annual wind power capacity additions appears likely for 2011 relative to 2010. Additions are expected to remain well below the 2009 high, however, due in part to relatively low wholesale electricity prices and limited need for new electric capacity additions, and in part to existing state-level RPS programs that, in aggregate, are not sizable enough to support continued wind power capacity additions at 2008 and 2009 levels. Most projections show further growth in 2012, as the cost of wind energy continues to decline as a result of lower wind turbine pricing, and as wind project developers rush to capture federal incentives currently slated to expire at the end of that year. Forecasts for 2013, meanwhile, span a particularly wide range, depending in part on assumptions about the possible extension of federal incentives beyond 2012, but in general are weighed down by current policy uncertainty as well as the expected limited need for new electric capacity additions. Integrating Wind Energy into Power Systems Is Manageable, but Not Free of Costs, and System.
To read the report http://www.windpoweringamerica.gov/pdfs/2010_annual_wind_market_report.pdf
To make green a reality visit http://www.thesolarandwindexpo.com/
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