ALL ABOUT WIND’S ‘09

New Study Sheds Light on U.S. Wind Power Market
August 4, 2010 (PhysOrg)

"The U.S. was one of the fastest-growing wind power markets in the world in 2009, second only to China, according to a…[U.S. Department of Energy/Lawrence Berkeley National Laboratory] report…[A]dditions in the United States set a new record in 2009, with 10 gigawatts of new capacity installed, representing a $21 billion investment…

"The 2009 edition of the Wind Technologies Market Report provides a comprehensive overview of developments in the rapidly evolving U.S. wind power market…[As it] documents, the past year has been one of upheaval. The global financial crisis and lower wholesale electricity prices have negatively impacted the near-term growth prospects for the wind power industry, while new federal policies are pushing the industry towards continued aggressive expansion…"

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"…For the first time, the report presents estimates of the proportion of U.S. wind turbine equipment costs that have derived from imports from other countries, finding that a growing percentage of equipment is being manufactured domestically…

"Some of the key findings…[1] The U.S. is the second-fastest-growing wind market worldwide…[2] Growth is distributed across much of the U.S…[3] Market growth is spurring manufacturing investments in the U.S…[4] A growing percentage of the equipment used in U.S. wind projects is domestically manufactured…"

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"…[5] Wind power project costs continued to increase into 2009, but reductions may be on the horizon…[6] Wind project performance has improved over time but dropped off in 2009…[7] Rising wind power prices and sharply lower wholesale prices make the near-term economics of wind energy more challenging…

"…[and, 8] Looking ahead, expectations are for a slower year in 2010… Lower expectations stem from a combination of the financial crisis, lower wholesale electricity prices, and lower demand for renewable energy. Projections among industry analysts range from 5,500 MW to 8,000 MW of wind power capacity likely to be installed in the United States in 2010, a drop of 20 to 45 percent compared to the nearly 10,000 MW installed in 2009…[M]ost predictions show market resurgence in 2011 and 2012, as programs funded by the American Recovery and Reinvestment Act mature and as financing constraints ease. Beyond 2012, however, the picture is considerably less certain, because of the scheduled expiration of a number of federal policies…"