Released October 10, 2017 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Windfarms are scheduled to sprout across two U.S. regions, the Southwest and the Midwest, over the next two years as developers continue their push for wind-generated power. On a rolling 12-month basis for the next two years, those regions are expected to account for about 50% of all new windfarm kickoffs, according to Industrial Info's North American Project Platform.
Developers have scheduled construction to begin on 71 wind projects in the Southwest and Midwest between October 2017 and September 2018. The value of those scheduled construction starts is about $23.9 billion.
For the following 12-month period, October 2018 to September 2019, developers plan to begin turning dirt on 65 windfarms valued at about $25 billion in those two regions.
Click on the images at right to see the dollar value of scheduled wind-power construction starts on a state-by-state basis, for the next two rolling 12-month periods.
On a national basis, developers have scheduled construction to begin on approximately 130 wind projects valued at roughly $43 billion over the next 12 months, according to the project platform. For the 12-month period after that, from October 2018 to September 2019, construction is expected to begin on about 135 wind projects valued at about $52 billion.
Click on the images at right to see the dollar value of scheduled wind-power project construction starts for all U.S. regions, for the next two rolling 12-month periods.
Industrial Info doesn't expect all of these projects to begin construction according to their current schedules. Contractual and financial challenges may cause some to be delayed or cancelled. But declining costs, customer appeal and tougher regulations for coal-fired plants, coupled with supportive state and federal policies, including tax credits, continue to support the industry's growth.
Developers have an incentive to get steel into the ground sooner rather than later, as federal Production Tax Credits (PTC) for wind power decline in value over time. Projects that began construction in 2016 were eligible for the full 2.3 cents per kilowatt-hour (kWh) of wind power generated for up to 10 years. But for projects that begin construction in 2017, the value of the PTC is reduced by 20%. And projects that break ground in 2018 will be eligible for only 60% of the PTC, or about 1.38 cents per kWh generated. The tax credits for wind power are scheduled to sunset in 2020. For more on the Congressional extension of the PTCs, see December 21, 2015, article - Renewable, Alternative Energy Industries Cheer Extensions of Tax Credits.
Wind-power developers had a particularly active first half of 2017, completing 14 projects with aggregate generating capacity of about 2,405 megawatts (MW) and valued at about $4.54 billion. For more on that, see July 17, 2017, article - U.S. Wind Power Has Strong First-Half 2017, Stronger Second Half Foreseen.
Looking forward, the pace of development across the nation appears ready to accelerate. For more on that, see September 6, 2017, article - Industrial Info Tracks More Than $5 Billion in Fourth-Quarter U.S. Wind Power Project Starts.
Within the Southwest and Midwest regions, the two areas expected to see the greatest value of construction kickoffs over the next 24 months, Texas is expected to see the largest dollar value of wind-power construction starts over the next two rolling 12-month periods. Project activity also is expected to be brisk in North Dakota, Oklahoma and Nebraska between October 2017 and September 2018.
For the 12-month period between October 2018 and September 2019, wind-power construction starts are expected to be greatest in Texas, South Dakota and Oklahoma.
Future wind-power development could dramatically accelerate if a recent projection from the U.S. Department of Energy (DoE) (Washington, D.C.) comes to pass. The study, conducted by the National Renewable Energy Laboratory (NREL) (Golden, Colorado) predicted wind power's costs will continue to decline, making it even more competitive with other forms of electric generation.
The NREL study predicts that wind power's costs will decline about 50% through 2030. That follows a cost drop of about 66% from 2009 to 2016, which helped spur more widespread wind-power development. In an earlier 2016 study, NREL predicted wind power's costs would decline by 24% to 30%. But more aggressive research & development by the industry, leading to higher wind towers, advanced blades and better controls, were cited by NREL as the reasons behind its revised cost estimates. The levelized, non-subsidized cost of wind power is expected to fall to about $31 per megawatt-hour (MWh) in 2030, down from about $55 per MWh in 2015, the lab said. Favorable financing could push the wind power's costs as low as $23 per MWh, NREL added.
"An increasing number of utilities, including American Electric Power, Public Service Company of Colorado and Public Service Company of New Mexico are adjusting their long-range generation planning to include more wind power," said Britt Burt, Industrial Info's vice president of research for the Global Power Industry. "If these projected cost declines materialize, and particularly if electricity-storage projects become commercialized, it could cause more utilities to take a harder look at renewables."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Developers have scheduled construction to begin on 71 wind projects in the Southwest and Midwest between October 2017 and September 2018. The value of those scheduled construction starts is about $23.9 billion.
For the following 12-month period, October 2018 to September 2019, developers plan to begin turning dirt on 65 windfarms valued at about $25 billion in those two regions.
Click on the images at right to see the dollar value of scheduled wind-power construction starts on a state-by-state basis, for the next two rolling 12-month periods.On a national basis, developers have scheduled construction to begin on approximately 130 wind projects valued at roughly $43 billion over the next 12 months, according to the project platform. For the 12-month period after that, from October 2018 to September 2019, construction is expected to begin on about 135 wind projects valued at about $52 billion.
Click on the images at right to see the dollar value of scheduled wind-power project construction starts for all U.S. regions, for the next two rolling 12-month periods.Industrial Info doesn't expect all of these projects to begin construction according to their current schedules. Contractual and financial challenges may cause some to be delayed or cancelled. But declining costs, customer appeal and tougher regulations for coal-fired plants, coupled with supportive state and federal policies, including tax credits, continue to support the industry's growth.
Developers have an incentive to get steel into the ground sooner rather than later, as federal Production Tax Credits (PTC) for wind power decline in value over time. Projects that began construction in 2016 were eligible for the full 2.3 cents per kilowatt-hour (kWh) of wind power generated for up to 10 years. But for projects that begin construction in 2017, the value of the PTC is reduced by 20%. And projects that break ground in 2018 will be eligible for only 60% of the PTC, or about 1.38 cents per kWh generated. The tax credits for wind power are scheduled to sunset in 2020. For more on the Congressional extension of the PTCs, see December 21, 2015, article - Renewable, Alternative Energy Industries Cheer Extensions of Tax Credits.
Wind-power developers had a particularly active first half of 2017, completing 14 projects with aggregate generating capacity of about 2,405 megawatts (MW) and valued at about $4.54 billion. For more on that, see July 17, 2017, article - U.S. Wind Power Has Strong First-Half 2017, Stronger Second Half Foreseen.
Looking forward, the pace of development across the nation appears ready to accelerate. For more on that, see September 6, 2017, article - Industrial Info Tracks More Than $5 Billion in Fourth-Quarter U.S. Wind Power Project Starts.
Within the Southwest and Midwest regions, the two areas expected to see the greatest value of construction kickoffs over the next 24 months, Texas is expected to see the largest dollar value of wind-power construction starts over the next two rolling 12-month periods. Project activity also is expected to be brisk in North Dakota, Oklahoma and Nebraska between October 2017 and September 2018.
For the 12-month period between October 2018 and September 2019, wind-power construction starts are expected to be greatest in Texas, South Dakota and Oklahoma.
Future wind-power development could dramatically accelerate if a recent projection from the U.S. Department of Energy (DoE) (Washington, D.C.) comes to pass. The study, conducted by the National Renewable Energy Laboratory (NREL) (Golden, Colorado) predicted wind power's costs will continue to decline, making it even more competitive with other forms of electric generation.
The NREL study predicts that wind power's costs will decline about 50% through 2030. That follows a cost drop of about 66% from 2009 to 2016, which helped spur more widespread wind-power development. In an earlier 2016 study, NREL predicted wind power's costs would decline by 24% to 30%. But more aggressive research & development by the industry, leading to higher wind towers, advanced blades and better controls, were cited by NREL as the reasons behind its revised cost estimates. The levelized, non-subsidized cost of wind power is expected to fall to about $31 per megawatt-hour (MWh) in 2030, down from about $55 per MWh in 2015, the lab said. Favorable financing could push the wind power's costs as low as $23 per MWh, NREL added.
"An increasing number of utilities, including American Electric Power, Public Service Company of Colorado and Public Service Company of New Mexico are adjusting their long-range generation planning to include more wind power," said Britt Burt, Industrial Info's vice president of research for the Global Power Industry. "If these projected cost declines materialize, and particularly if electricity-storage projects become commercialized, it could cause more utilities to take a harder look at renewables."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
