TODAY’S STUDY: The Wind Boom Now

U.S. Wind Industry Second Quarter 2019 Market Report

August 2019 (American Wind Energy Association)

Executive Summary

2019 Wind Project Installations

• The U.S. wind industry installed 736 MW of new wind power capacity in the second quarter of 2019. The industry has commissioned 1,577 MW in the first half of the year, a 53% increase over the first half of 2018.

• Project owners commissioned four new projects across two states in the second quarter. Texas led with 734 MW installed, followed by California with 2 MW.

• There are now 97,960 MW of cumulative installed wind capacity in the United States, with more than 57,000 wind turbines operating across 41 states and two U.S. territories.

Wind Capacity Under Construction or in Advanced Development

• Construction activity reached a new record of 20,908 MW at the end of the second quarter, with an additional 20,892 MW in advanced development. The combined 41,801 MW represents a 10% year-over-year increase and a new high water mark for the industry.

• Projects totaling 4,448 MW started construction and a further 2,842 MW entered advanced development during the second quarter. The combined 7,290 MW marks the second-highest volume of new announcements on record.

• 15 states have over 1,000 MW under construction or advanced development. Texas hosts 22% of the total development pipeline, followed by Wyoming (12%), New Mexico (7%), Iowa, (6%), and South Dakota (5%).

• In terms of offtake, 47% of capacity in the pipeline has a PPA in place, while 20% is utility-owned and 8% has a hedge contract.

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Wind Power Procurement Activity

• Project developers announced 1,962 MW of new PPAs in the second quarter, contributing to a total of 4,799 MW for the year.

• Corporate customers signed 52% (1,013 MW) of capacity contracted in the second quarter. Six companies purchased wind for the first time, including Hormel Foods, Cisco Systems, and Ernst & Young.

• Utilities signed contracts for 949 MW of wind capacity, led by Associated Electric Cooperative and Minnesota Municipal Power Agency. Ameren Missouri also announced plans to add 300 MW of wind capacity under direct ownership in the second quarter.

Turbine Technology Trends

• Vestas turbines represent 49% of turbine installations in the first half of 2019, while GE Renewable Energy accounts for 42% and Siemens Gamesa Renewable Energy represents 9%.

• Average turbine capacities continue to increase, with 14% of turbines installed year-to-date rated between 3.4 MW to 3.6 MW. In the second quarter, the Patriot Wind project became the sixth operating project in the country with turbines rated above 3.5 MW.

• Looking forward, the majority of projects underway that have reported turbine models are using turbines with a nameplate capacity between 2 MW and 3 MW, while 33% have selected turbines rated 3 MW or higher.

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• The U.S. wind industry commissioned 736 MW of wind power capacity in the second quarter of 2019.

• Installations for the year total 1,577 MW, a 53% increase over the first half of 2018.

• In addition to new capacity installations, project owners partially repowered 150 MW in the second quarter.

• The industry is closing in on the 100 GW milestone. There are now 97,960 MW of cumulative installed wind capacity in the United States, with more than 57,000 wind turbines operating across 41 states and two U.S. territories.

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• Developers commissioned four new wind projects totaling 736 MW in two states during the second quarter.

• Texas led second quarter capacity additions with 734 MW, including the 478 MW Hale Wind project. California added a 1.7 MW single-turbine project.

• Year-to-date the industry has added 11 projects across 7 states totalling 1,577 MW.

• Texas leads in installations for the year (734 MW), followed by Iowa (536 MW).

• Project owners also partially repowered 407 MW across two projects in Iowa in the first half of the year (not shown on map)

• Texas continues to lead the nation in installed capacity, surpassing 25 GW of wind power in the second quarter.

• 19 states have over 1,000 MW of installed capacity.

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• The near-term U.S. wind project pipeline grew to a new record in the second quarter of 2019. There are now 41,801 MW of wind power capacity either under construction (20,908 MW) or in advanced development (20,892 MW), including 3,152 MW of offshore wind. The total pipeline increased 7% over the first quarter and 10% year-over-year as developers continue to find offtake for PTC-qualifying projects.

• Project developers announced 7,290 MW in combined new activity for the second quarter of 2019, with projects totaling 4,448 MW starting construction and a further 2,842 MW entering advanced development.

’ • Project developers continue to move their near-term pipelines forward. Fifteen projects previously in advanced development moved into the construction phase in the second quarter. Wind projects currently under construction have been underway for an average of roughly 12 months, while projects in advanced development have been underway for 14 months, on average. Over 63% of the 41,801 MW underway started construction or entered advanced development in 2018 or 2019.

• Construction activity reached a new record in the second quarter, with a total of 20,908 MW now under construction.

• Construction activity increased 21% over the previous quarter as 4,448 MW started construction in the second quarter.

• Total wind capacity under construction is up 10% year-over-year…

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