This week the Energy Department and Lawrence Berkeley National Laboratory released a new report highlighting strong growth in America’s wind energy market in 2011 and underscoring the importance of continued policy support and clean energy tax credits to ensure that the U.S. remains a leading producer and manufacturer in this booming global industry.
The report says “President Obama has made clear, we need an all-of-the-above approach to American energy and the U.S. wind industry is a critical part of this strategy. In fact, wind energy contributed 32% of all new U.S. electric capacity additions last year, representing $14 billion in new investment.”
In the United States, domestic clean energy production and manufacturing competitiveness work hand-in-hand. The report finds total U.S. wind power capacity grew to 47,000 megawatts by the end of 2011 and has since grown to 50,000 megawatts, enough to power 12 million homes annually—as many homes as in the entire state of California. And as wind energy capacity has grown, more and more wind turbines and components like towers, blades, gears, and generators are “Made in America.” Nearly 70% of all of the equipment installed at U.S. wind farms last year came from domestic manufacturers, doubling from 35% in 2005.
Among their findings is that California added the most wind capacity in 2011 at 921 MW for a cumulative total of nearly 4000 MW installed. Texas has more than 10,000 MW.
With the addition of 921 Megawatts (MW) of wind energy projects installed across California in 2011 – bringing the state’s total wind generation capacity to 3,927 MW – wind energy now accounts for 5% of California’s total electricity needs according to the California Wind Energy Association (CalWEA). The 921 MW built in 2011 is enough electricity to power more than 400,000 households.
“The total amount of wind energy installations in 2011 created a banner year for wind generation in California and is helping to drive California closer to reaching its goal of 33% renewable energy,” said Nancy Rader, CalWEA’s Executive Director. “There are a number of
projects on the drawing board that will continue wind capacity’s growth in 2012, but we need Congress to extend the wind energy production tax credit very soon to keep up that momentum. The investments companies are making in California to develop wind energy
projects is a boon for cleaner air and greener energy, and also for creating jobs and retooling manufacturing here and across the country.”
Most In Kern
Of the 921 MW of wind capacity built in 2011, almost 700 MW of added capacity came from the Tehachapi area of Kern County, with large new projects also installed in Solano, Contra Costa and Riverside Counties.
This year will see even more growth, with several additional projects totaling in excess of 1,600 MW of wind generation capacity slated for Kern, Solano, Riverside, Imperial and San Diego Counties in 2012, which is expected to create more than 1,000 new construction jobs, in addition to permanent and indirect jobs.More than half of that is being built in Kern.
Overall, cumulative installed wind capacity in the U.S. grew 17% from 2010, and now totals 46,919 MW. Over 100 wind projects are currently under construction across 31 states and Puerto Rico. Almost 3,500 MWs of new projects broke ground during 4Q 2011 and the year
ended with 8,320 MWs under construction.
This summer, Energy Department leaders have traveled across the country and seen firsthand how American workers and businesses are helping maintain U.S. leadership in the growing wind energy industry. In Iowa, Keystone Electrical Manufacturing Company has seen orders from the wind industry grow from almost nothing a decade ago to nearly 22% of gross sales, while, at ACCIONA Windpower’s West Branch assembly plant more than 100 workers are making wind turbines to sell here in the U.S. and around the world. Near Minneapolis, the International Brotherhood of Electrical Workers Local 343 Union facility features a 60-foot turbine tower to help train union members for new construction, installation, and maintenance jobs.
In addition to strong gains in domestic wind manufacturing and capacity, the report finds that as wind technology improves, costs are coming down. Technological innovations are helping make longer and lighter wind turbine blades, while improving turbine performance and increasing the efficiency of power generation. At the same time, wind project capital and maintenance costs have continued to decline. Smart investments are paying dividends across the U.S. wind industry. From Des Moines to Amarillo to Denver, the American clean energy economy is hard at work—creating jobs right now and ensuring our global competitiveness in the clean energy technologies of the future. We can’t afford to break this momentum.
“This is why the Obama Administration is calling for the extension of the production tax credit (PTC). Our continued support of clean energy policies like the PTC are mission critical for America’s thriving, competitive wind industry—and shows, more than ever, the promise to create the high-paying American jobs and nationwide economic growth our country needs” says DOE.
Last week both the Senate and Congress indicated some willingness to extend the tax credit in the lame duck session of Congress this year. Extension of critical tax relief to save 37,000 jobs in wind energy and continue growing U.S. manufacturing advanced in the Senate Finance Committee today with strong bipartisan support.
By an overwhelming bipartisan margin of 19-5, a Senate committee passed an extenders package that included an extension of the wind energy Production Tax Credit (PTC). On critical amendment votes, all the Democratic members and GOP Sens. Chuck Grassley (R-IA) and Pat Roberts (R-KS) supported the extension of the PTC.
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