U.S. Top Wind Energy Market and Continues to Grow
U.S. wind power capacity increased by 27 percent in 2006, and the U.S. had the fastest growing wind power capacity in the world in 2005 and 2006.
U.S. wind power capacity increased by 27 percent in 2006, and the U.S. had the fastest growing wind power capacity in the world in 2005 and 2006.
More than 61 percent of the U.S.'s total wind capacity — over 7,300 Megawatts (MW) — has been installed since 2001, according to the report from the
U.S. Department of Energy (DOE), Annual Report on U.S. Wind Power Installation, Cost, and Performance Trends: 2006.
The report specifically analyzes trends in the marketplace including wind power prices compared to wholesale electricity prices, project costs, turbine sizes, and developer consolidation. It also describes the increasing performance of wind projects, current ownership and financing structures, and trends among major wind power purchasers.
In 2006, for the second straight year, the U.S. led the world by installing 2,454 MW of wind power capacity, enough to power the homes in a city the size of Philadelphia. The U.S. produced roughly 16 percent of the worldwide wind market, followed by Germany, India, Spain, and China, according to the report.
Some of the key findings of the report include:
- Wind power is competitive and has provided good value in wholesale power markets. Wind power has consistently been priced at, or below, the average price of conventional electricity (coal, nuclear, natural gas, etc.).
- The U.S. is the fastest growing wind market worldwide. There remains substantial potential for the expansion of wind power to achieve approximately 20 percent of the nation’s generating mix.
- Texas, Washington, and California lead the U.S. in annual capacity growth.
- The cost of turbines has risen since 2002. Higher costs have reversed the decline in total wind project costs and driven up the cost of generating wind power. Turbine cost increases have been driven by rises in input material and energy prices, and some shortages in certain turbine components.
- Wind project performance, has increased sharply over the last several years. This has been driven in part by improved project siting, and technological advancements.
- The wind market is in a period of transition. Electric utilities have shown increased interest in wind project ownership, and merchant wind power plants and sales to power marketers have become more common.
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