Green Investing | August 11, 2010 |
Domestic Content Rising in U.S. Wind Industry
The U.S. wind industry in 2009 sourced roughly 60 percent of turbines and components domestically, according to the Department of Energy's (DOE) latest Wind Technologies Market Report. That percentage is up from about 50 percent in 2008.
This year's Report is the first to estimate the amount of equipment imported from other countries. It finds that the growing percentage of domestic manufacturing is the result of U.S. and foreign companies seeking to minimize transportation costs and currency risks.
According to the report, 2009 was another record-breaking year for U.S. wind power additions. The 10 gigawatts (GW) of capacity additions represent a $21 billion investment in new wind power projects, and enough capacity to power the equivalent of 2.4 million homes. Wind projects accounted for 39 percent of all new U.S. electric generating capacity in 2009, and wind energy is now able to deliver 2.5 percent of the nation's electricity supply.
The report analyzes trends in wind power capacity, industry, manufacturing, turbines, installed project costs, project performance, and how wind power prices compare to conventional generation. It also describes trends among wind power developers, project owners, and power purchasers, and discusses financing issues.
Other key findings of the report include the following:
- Wind power capacity growth is distributed across much of the nation, with new wind farms constructed in 28 states in 2009
- Market growth is spurring manufacturing investments in the United States; seven of the ten wind turbine manufacturers with the largest share of the U.S. market in 2009 have manufacturing facilities in the United States, and two of the remaining three have announced plans to open U.S. facilities in the future - Rising wind power prices and sharply lower wholesale electricity prices make the near-term economics of wind energy more challenging - Financial constraints, electricity prices, and energy demand suggest that 2010 will be a slower year for wind powerThe report also predicts that the U.S. wind market is likely to be resurgent in 2011 and 2012, as programs funded by the American Recovery and Reinvestment Act of 2009 mature and financing constraints continue to ease. This is in direct opposition to claims made by the American Wind Energy Industry (AWEA) that the domestic industry is about to drop off, because investors are uncertain about the future of renewable energy incentives.
The 2009 Wind Technologies Market Report is available as a pdf at the link below.
Website: www1.eere.energy.gov/windandhydro/pdfs/2009_wind_technologies_market_report.pdf


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