An annual report from The American Wind Energy Association (AWEA) has shown that the US wind industry broke all records in 2009 by installing nearly 10,000 MW of new generating energy. The total wind power generating capacity is now more than 35,000 MW, which is enough capacity to supply almost 10 million American homes.
The development of renewable energy in the US has grown considerably within the last decade which is in evidence for wind energy in particular. The average annual growth of wind energy over the past five years is now 39 percent compared to 32 percent a year ago.
The right incentives
One of the reasons for the wind industry to once again break records in 2009 is that most of the wind energy installed in 2009 was planned even before the financial crisis hit in late 2008. However the main reason for the tremendous growth of 2009 is the stimulus package which was passed in February 2009. The purpose of the package was to get America’s economy back on track and one of the ways to do this was by investing in renewable energy. The package therefore contained a large number of incentives making it appealing to invest in the wind industry. At the beginning of 2008 AWEA expected that the investment in wind power development would drop by 50 percent compared to the previous year owing to the impact of the financial crisis. However now that wind industry once again has broken record in 2009 it becomes evident that the stimulus package has offered sufficient incentives still making it profitable to invest in wind energy.
The industry demands new investments in manufacturing
While there was an increase in the capacity of wind energy installed in 2009 there was at the same time a decrease in the investment in manufacturing facilities. This can be explained by the lack of long-term federal regulations creating a constant support from the government. Currently a large number of the US states have implemented Renewable Portfolio Standards, standards that regulate how large a share of the states’ production of electricity must come from renewable sources. The wind industry is working hard for these standards to become federal, as it without a doubt with entail further growth within the wind industry.
It is critical for the US wind industry that there has been a decrease in the investment in manufacturing as this industry has previously suffered from insufficient supply of components and parts. Consequently there is currently a distinct demand for new investments in the wind industry, which creates unique opportunities for Danish companies that are interested in pursuing the potential of the US market.
1 February 2010