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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. wind power industry installed more capacity in the last quarter of 2015 than in the entire year of 2014, according to the American Wind Energy Association (AWEA). Industrial Info has tracked 52 U.S. wind power projects worth more than $15 billion that were completed in 2015.
The just-ended quarter saw the installation of 5,001 megawatts (MW) in wind-generated power capacity, making it the second-strongest quarter ever in terms of growth. For all of 2015, more than 8,598-MW of wind power capacity was installed, the third largest amount ever installed for one year. That amount equates to about 4,000 turbines and represents a 77% increase from 2014.
The wind power industry now has 74,472 MW of installed capacity. There are currently about 52,000 operating wind turbines in the U.S.
Congress recently extended the Production Tax Credit (PTC) by five years. The per-kilowatt-hour (kWh) production-based incentive allows eligible wind projects to receive a tax credit for 10 years after their start-up date. This is applicable to wind projects starting up after August 8, 2005. It also includes a phase-down for wind projects that begin construction after December 31, 2016. Wind projects that start construction in 2017 will receive 20% less PTC tax credits. Wind facilities commencing construction in 2018 will receive 40% less PTC tax credits. Finally, wind facilities commencing construction in 2019 will receive 60% less tax credits.
For related information, see January 29, 2016, article - With Over 70 GW of Installed Capacity, Windpower Sets Sights on Continued Growth.
The wind power industry has witnessed a 66% percent decline in costs due to improvements in domestic manufacturing and new technologies over the last six years.
It is estimated that by 2030, wind power will provide 20% of the electricity in the U.S. and up to 30% by 2050, according to the US Department of Energy's (DOE) Wind Vision report, which was released in early 2015.
A new trend in the industry is the purchasing of wind generated electricity from non-traditional buyers such as Alphabet Incorporated (NASDAQ:GOOG) (Mountain View, California), , Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington), and General Motors (NYSE:GM) (Detroit, Michigan). More and more large companies are turning to wind power to help reach their company's renewable energy goals. Procter & Gamble (NYSE:PG) (Cincinnati, Ohio) announced plans in October for 100% of the electricity needs of its North American Fabric & Home Care plants to be met with windpower. For related information, see January 21, 2016, article - Corporate America Boosts Commitment to Renewable Energy.
About 75% of new wind power purchase agreements (PPA) have come from non-utility buyers. However, utilities still continue to invest strongly in wind power. In the fourth quarter, more than 2,300 MW of installed capacity was tied to PPAs with utilities.
PPAs allow customers to lock in a fixed price for electricity. They can last anywhere between 5 to 20 years. PPAs also play a key role in financing of independently owned electricity generating assets.
The AWEA noted that Iowa now has the second largest installed capacity of wind power, with more than 6,000 MW. Oklahoma has just reached the 5,000-MW mark, and New Mexico is now the 17th state to join the "gigawatt club," reaching 1,000 MW. Texas still leads the nation, with more than 17,000 MW of installed wind power capacity, more than twice that of any other state.
A challenge for the industry is the aging transmission infrastructure, which has not kept up with the industry's growth. The Center for Rural Affairs states that only 6% of transmission lines are within the top 10 wind states. Projected growth is likely to take place within the MISO (Midcontinent Independent System Operator) region due to its strong wind resources. It is the largest regional transmission organization as well as independent system operator. MISO has developed its expansion planning process for 2017. It is analyzing where transmission projects are needed. Currently, it has approved 17 multi-value transmission projects (MVPs).
Wind power projects that were completed in 2015 include MidAmerican Energy Company's (Des Moines, Iowa) 500-MW Highland Windfarm project in O'Brien County, Iowa. Construction of the project, valued at $900 million, began in late 2013.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
The just-ended quarter saw the installation of 5,001 megawatts (MW) in wind-generated power capacity, making it the second-strongest quarter ever in terms of growth. For all of 2015, more than 8,598-MW of wind power capacity was installed, the third largest amount ever installed for one year. That amount equates to about 4,000 turbines and represents a 77% increase from 2014.
The wind power industry now has 74,472 MW of installed capacity. There are currently about 52,000 operating wind turbines in the U.S.
Congress recently extended the Production Tax Credit (PTC) by five years. The per-kilowatt-hour (kWh) production-based incentive allows eligible wind projects to receive a tax credit for 10 years after their start-up date. This is applicable to wind projects starting up after August 8, 2005. It also includes a phase-down for wind projects that begin construction after December 31, 2016. Wind projects that start construction in 2017 will receive 20% less PTC tax credits. Wind facilities commencing construction in 2018 will receive 40% less PTC tax credits. Finally, wind facilities commencing construction in 2019 will receive 60% less tax credits.
For related information, see January 29, 2016, article - With Over 70 GW of Installed Capacity, Windpower Sets Sights on Continued Growth.
The wind power industry has witnessed a 66% percent decline in costs due to improvements in domestic manufacturing and new technologies over the last six years.
It is estimated that by 2030, wind power will provide 20% of the electricity in the U.S. and up to 30% by 2050, according to the US Department of Energy's (DOE) Wind Vision report, which was released in early 2015.
A new trend in the industry is the purchasing of wind generated electricity from non-traditional buyers such as Alphabet Incorporated (NASDAQ:GOOG) (Mountain View, California), , Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington), and General Motors (NYSE:GM) (Detroit, Michigan). More and more large companies are turning to wind power to help reach their company's renewable energy goals. Procter & Gamble (NYSE:PG) (Cincinnati, Ohio) announced plans in October for 100% of the electricity needs of its North American Fabric & Home Care plants to be met with windpower. For related information, see January 21, 2016, article - Corporate America Boosts Commitment to Renewable Energy.
About 75% of new wind power purchase agreements (PPA) have come from non-utility buyers. However, utilities still continue to invest strongly in wind power. In the fourth quarter, more than 2,300 MW of installed capacity was tied to PPAs with utilities.
PPAs allow customers to lock in a fixed price for electricity. They can last anywhere between 5 to 20 years. PPAs also play a key role in financing of independently owned electricity generating assets.
The AWEA noted that Iowa now has the second largest installed capacity of wind power, with more than 6,000 MW. Oklahoma has just reached the 5,000-MW mark, and New Mexico is now the 17th state to join the "gigawatt club," reaching 1,000 MW. Texas still leads the nation, with more than 17,000 MW of installed wind power capacity, more than twice that of any other state.
A challenge for the industry is the aging transmission infrastructure, which has not kept up with the industry's growth. The Center for Rural Affairs states that only 6% of transmission lines are within the top 10 wind states. Projected growth is likely to take place within the MISO (Midcontinent Independent System Operator) region due to its strong wind resources. It is the largest regional transmission organization as well as independent system operator. MISO has developed its expansion planning process for 2017. It is analyzing where transmission projects are needed. Currently, it has approved 17 multi-value transmission projects (MVPs).
Wind power projects that were completed in 2015 include MidAmerican Energy Company's (Des Moines, Iowa) 500-MW Highland Windfarm project in O'Brien County, Iowa. Construction of the project, valued at $900 million, began in late 2013.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
