. Wind Energy News .




.
WIND DAILY
US Wind Power Market Riding a Wave That Is Likely to Crest in 2012
by Staff Writers
Berkeley CA (SPX) Aug 16, 2012

File image.

Facing looming policy uncertainty beyond 2012, the U.S. remained one of the fastest-growing wind power markets in the world in 2011-second only to China-according to a new report released by the U.S. Department of Energy and prepared by Lawrence Berkeley National Laboratory (Berkeley Lab). Roughly 6.8 gigawatts (GW) of new wind power capacity were connected to the U.S. grid in 2011-more than the 5.2 GW built in 2010, but below the 10 GW added in 2009.

Driven by the threat of expiring federal incentives, new wind power installations are widely expected to be substantially higher in 2012 than in 2011, and perhaps even in excess of 2009's record build.

Other key findings from the U.S. Department of Energy's "2011 Wind Technologies Market Report" include:

+ Wind is a credible source of new generation in the U.S. Wind power comprised 32% of all new U.S. electric capacity additions in 2011 and represented $14 billion in new investment. Wind power currently contributes more than 10% of total electricity generation in six states (with two of these states above 20%), and now provides more than 3% of total U.S. electricity supply.

+ In spite of the lack of policy clarity, wind turbine manufacturers and their suppliers continued to localize production domestically in 2011. As a result, a growing percentage of the equipment used in U.S. wind power projects is being sourced domestically: 67% in 2011, up from just 35% back in 2005-2006. However, Ryan Wiser, a Staff Scientist at Berkeley Lab and co-author of the report, notes, "behind these positive US Wind Power Market Riding a Wave That Is Likely to Crest in 2012 numbers, the domestic wind industry supply chain is currently facing severe pressure, due to uncertain prospects after 2012." Specifically, profit margins have been declining and concerns about manufacturing overcapacity have deepened, potentially setting the stage for significant layoffs if demand for turbines (for post-2012 delivery) does not pick up.

+ Turbine scaling has boosted wind project capacity factors. Since 1998-99, the average nameplate capacity of wind turbines installed in the U.S. has increased by 174% (to 1.97 MW in 2011), the average turbine hub height has increased by 45% (to 81 meters), and the average rotor diameter has increased by 86% (to 89 meters). This substantial scaling has pushed average capacity factors among new wind projects higher over time, though the increase has been mitigated in recent year by significant curtailment of wind energy output in some regions, along with a trend towards wind developers building out lower wind speed sites.

+ Falling wind turbine prices have begun to push installed project costs lower. Wind turbine prices have fallen 20 to 30% from their highs back in 2008, but this decline has been slow to show up in installed project cost data, which only began to turn the corner (on average) in 2011. Data from a preliminary sample of wind power projects being built in 2012 suggest further reductions in installed project costs.

+ Lower wind turbine prices and installed project costs, along with improved capacity factors, are enabling aggressive wind power pricing. Grouping projects according to the year in which they signed a power purchase agreement (PPA) makes it clear that wind power pricing peaked among those projects that executed contracts in 2009 and has fallen substantially since. Among a sample of wind power projects with contracts signed in 2011, the capacity-weighted average levelized price is $35/MWh, down from $59/MWh for projects with contracts signed in 2010, and $72/MWh for projects with contracts signed back in 2009.

"Wind PPA prices-particularly in the central U.S.-are now approaching previous lows set back in 2003," notes Berkeley Lab Research Scientist and report co-author Mark Bolinger. "But even with today's much lower wind energy prices, wind power still struggles to compete with depressed natural gas and wholesale power prices in many parts of the country."

+ Looking ahead, projections are for continued strong growth in 2012, followed by dramatically lower but uncertain additions in 2013. With key federal incentives for wind energy (including bonus depreciation and a choice of the production tax credit, investment tax credit, or Section 1603 Treasury cash grant) currently slated to expire at the end of 2012, new capacity additions in 2012 are anticipated to substantially exceed 2011 levels-and perhaps even the record high set in 2009-as developers rush to commission projects.

At the same time, the possible expiration of these incentives at the end of 2012, in concert with continued low natural gas prices, modest electricity demand growth, and existing state policies that are not sufficient to support continued capacity additions at the levels witnessed in recent years, threatens to dramatically slow new builds in 2013 and beyond, despite recent improvements in the cost and performance of wind power technology.

Related Links
Lawrence Berkeley National Laboratory
Wind Energy News at Wind Daily




.
.
Get Our Free Newsletters Via Email
...
Buy Advertising Editorial Enquiries




.

. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle



WIND DAILY
Wind farms: A danger to ultra-light aircraft?
Oldenburg, Germany (SPX) Aug 15, 2012
Airfields for ultra-light aircraft are typically constructed on level ground - and so are wind farms. However, do wind power plantsgenerate turbulence that could endanger lightweight planes? A simulation can compute how these power plants influence aircraft at various wind speeds and wind directions. For a motorized hangglider or a one-seater weighing 300 kilograms: the business of flying ... read more


WIND DAILY
Belgian nuclear safety chief spells out fissure fears

UAE announces $3bn in nuclear fuel deals

Japan's Toshiba eyes nuclear power alliance

NRC Freezes All Nuclear Reactor Construction and Operating Licenses in US

WIND DAILY
Bill Gates Names Winners of the Reinvent the Toilet Challenge

SOLON Accelerates Shipping Innovative Solquick Rooftop Solution To Solar Installers

KYOCERA to Supply 405KW of Renewable Solar Energy to Remote Villages of Fiji

Saint Theresa's Looks to the Sun For Big Energy Savings

WIND DAILY
Major advance made in generating electricity from wastewater

New process doubles production of alternative fuel while slashing costs

Senegalese villagers vow to fight biofuels project

AREVA invests in bio-coal

WIND DAILY
US Wind Power Market Riding a Wave That Is Likely to Crest in 2012

Wind farms: A danger to ultra-light aircraft?

Off-shore wind power project considered

Obama whips up wind power attack on Romney

WIND DAILY
Drought hits U.S. power supply

Rwanda to begin geothermal drilling

ADB urges 'green' tax for China

Tanzania to end power shortages in capital

WIND DAILY
Japan arrests five men on disputed island: police

Venezuelan petrol to China up 60% since February: officials

Japan to deport pro-China island activists: reports

Japan arrests 14 pro-China activists over island landing

WIND DAILY
Japan arrests five men on disputed island: police

Venezuelan petrol to China up 60% since February: officials

Japan to deport pro-China island activists: reports

Japan arrests 14 pro-China activists over island landing

WIND DAILY
UC Research Promises Quiet Cars - Even When Hitting Unexpected Bumps in the Road

Asbestos found in Chinese-made cars in Australia

Japan's Isuzu plans China, India truck plants: report

China's auto sales slow in July: industry group


Memory Foam Mattress Review

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

.

The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement