TODAY’S STUDY: Wind’s Big Year

U.S. Wind Industry Fourth Quarter 2016 Market Report

January 26, 2017 (American Wind Energy Industry)

The U.S. wind industry installed 6,478 megawatts (MW) during the fourth quarter of 2016, the second strongest quarter for installations on record. With 8,203 MW commissioned during 2016, the U.S. now has an installed capacity of 82,183 MW.

Project developers reported more than 18,300 MW of wind capacity under construction or in advanced development, with 6,345 MW in combined new announcements. There are now 10,432 MW under construction and 7,913 MW in advanced development.

Over 4,000 MW of power purchase agreements (PPA) were signed during 2016, and electric utilities released 23 wind-eligible requests for proposals (RFPs).

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Key Takeaways

2016 Wind Project Installations

• The U.S. wind industry installed 6,478 MW of wind capacity during the fourth quarter, the second strongest quarter for installations on record. For the year, the U.S. installed 8,203 MW.

• 19 states commissioned a total of 47 projects during the fourth quarter. Texas led with 1,790 MW, followed by Oklahoma (1,192 MW), Kansas (615 MW), North Dakota (603 MW) and Iowa (551 MW).

• Oklahoma surpassed California to become the third-ranked state in the nation with over 6,600 MW of installed capacity; Kansas surpassed Illinois as the fifth-ranked state with more than 4,400 MW.

• There are now 82,183 MW of installed wind capacity in the United States, with more than 52,000 wind turbines operating in 40 states plus Guam and Puerto Rico.

• The U.S. commissioned its first offshore wind project during the fourth quarter, the 30 MW Block Island wind project off the coast of Rhode Island.

• GE Renewable Energy and Vestas captured a combined 85% of the U.S. wind turbine market during 2016; including Siemens, the three turbine manufacturers captured 95% of the market.

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Wind Capacity Under Construction or in Advanced Development • There are now 10,432 MW under construction and 7,913 MW in advanced development, a combined 18,344 MW of wind capacity.

• Project developers announced 6,345 MW in combined new activity during the fourth quarter, with 3,793 MW in new construction announcements (a three year record high) and 2,552 MW in new advanced development.

• The industry also qualified significant additional project capacity for the full value of the PTC at year end through safe harbor and physical construction without finalizing project capacities. These new projects will be reported in the near term.

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Strong Procurement Activity

• Project developers signed 816 MW of PPAs during the fourth quarter, contributing to a total of 4,040 MW of PPAs signed during 2016.

• Utilities and rural electric cooperatives represent 56% of total project capacity contracted (2,266 MW) during 2016, building on announcements by Alliant Energy, MidAmerican Energy, Xcel Energy and others to build and own wind capacity.

• For the year, non-utility purchasers comprise 39% of the remaining capacity contracted (1,574 MW).

• 23 electric utilities released wind-eligible RFPs during 2016, with 10 RFPs released specifically for wind energy capacity. Two open RFPs are currently seeking at least 250 MW of wind capacity.

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U.S. Installed Wind Power Capacity, Top States

• Oklahoma (6,645 MW) and Kansas (4,451 MW) jumped in the state rankings to become the third- and fifth-ranked states in the nation, respectively.

• 19 states commissioned a total of 47 projects during the fourth quarter. Texas led in fourth quarter installations with 1,790 MW installed, followed by Oklahoma (1,192 MW), Kansas (615 MW), North Dakota (603 MW) and Iowa (551 MW).

• Texas continues to lead the nation with 20,321 MW of installed capacity, the first state to pass 20,000 MW.

• Nebraska became the 18th state to join the “Gigawatt Club,” installing 402 MW for a total of 1,328 MW.

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Wind Power Capacity Under Construction or in Advanced Development

• There are now a combined 18,344 MW of wind power capacity in two development stages, with 10,432 MW reported under construction and 7,913 MW reported in advanced development.

• Project developers announced 6,345 MW in combined new activity during the fourth quarter, with 3,793 MW in new construction announcements (a three year record high) and 2,552 MW in new advanced development.

• The combined 18,344 MW of wind power capacity is spread across 130 wind projects in 31 states. Projects in these two categories can be reasonably expected to be completed in the near term.

• The 3,793 MW in new construction announcements represents a three year record high, with 10,432 total construction activity. This decrease from the 13,563 MW reported during the previous quarter is due to several projects coming online. The industry also qualified significant additional project capacity for the full value of the PTC at year end without finalizing project capacities. These new projects will be reported in the near term.

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• 24 projects across 7 states started construction during the fourth quarter. Total activity spans 27 states.

• Texas led the nation with 2,447 MW in new construction announcements. Texas also leads in total construction activity, hosting 52% of current activity.

• 15% of construction activity is located in the Midwest, wth an additional 13% located in the Mountain states of Colorado and New Mexico.

• Given current construction activity, New Mexico is expected to more than double in installed capacity in the near term.

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