23-11-2012, 11:13 AM
2011 WIND TECHNOLOGIES MARKET REPORT
2011 WIND TECHNOLOGIES.pdf (Size: 2.11 MB / Downloads: 23)
Introduction
The U.S. wind power industry is facing uncertain times. With 2011 capacity additions having risen from 2010 levels and with a further sizable increase expected in 2012, there are – on the surface – grounds for optimism. At the same time, the currently-slated expiration of key federal tax incentives for wind energy at the end of 2012 – in concert with continued low natural gas prices and modest electricity demand growth – threatens to dramatically slow new builds in 2013, despite recent improvements in the cost and performance of wind power technology. In combination with growing global competition within the sector, these trends have already negatively impacted the U.S. wind power industry’s supply chain.
The wind power sector is dynamic, making it difficult to keep up with evolving trends in the marketplace. This annual report – now in its sixth year – meets the need for timely, objective information on the industry and its progress by providing a detailed overview of developments and trends in the United States wind power market, with a particular focus on 2011. As with previous editions, this report begins with an overview of key installation-related trends: trends in wind power capacity growth; how that growth compares to other countries and generation sources; the amount and percentage of wind energy in individual states; the status of offshore wind power development; and the quantity of proposed wind power capacity in various interconnection queues in the United States. Next, the report covers an array of wind power industry trends, including: developments in turbine manufacturer market share; manufacturing and supply-chain investments; wind turbine and component imports into and exports from the United States; wind turbine size, hub height, and rotor diameter; project financing developments; and trends among wind power project owners and power purchasers. The report then turns to a discussion of wind power cost, performance, and pricing trends. In so doing, it describes trends in wind turbine transaction prices, installed project costs, operations and maintenance expenses, and project performance. It also reviews the prices paid for wind power in the United States, and how those prices compare to short-term wholesale electricity prices. Next, the report examines policy and market factors impacting the domestic wind power market, including federal and state policy drivers, transmission issues, and grid integration. Finally, the report concludes with a preview of possible near-term market developments.
Installation Trends
Wind Power Additions Increased in 2011, with Roughly 6.8 GW of New Capacity Added in the United States and $14 Billion Invested
The U.S. wind power market grew more rapidly in 2011 than in 2010, with 6,816 MW of new capacity added, bringing the cumulative total to nearly 47,000 MW (Figure 1).2 This growth translates into $14.3 billion (real 2011 dollars) invested in wind power project installation in 2011, for a cumulative investment total of $95 billion since the beginning of the 1980s.3 Wind power installations in 2011 were 31% higher than in 2010, but still well below the levels seen in 2008 and 2009. Cumulative wind power capacity grew by 16% in 2011.
Wind Power Comprised 32% of U.S. Electric Generating Capacity Additions in 2011
Wind power has represented one of the largest new sources of electric capacity additions in the United States in recent years. In 2011, wind power was again (for the sixth time in seven years) the second-largest new resource added to the U.S. electrical grid in terms of gross capacity additions, behind the 10,500 MW of new natural gas capacity.4 New wind power projects contributed roughly 32% of the new nameplate capacity added to the U.S. electrical grid in 2011, compared to 25% in 2010, 42% in 2009, 43% in 2008, 34% in 2007, 18% in 2006, 12% in 2005, and less than 4% from 2000 through 2004 (Figure 2).