Annual wind market report shows very positive growth

The US wind power industry has experienced another bumper year in 2009, this came in spite of dire predictions after the financial crisis in early 2009.

This year roughly 10 GW of extra capacity was added in the US and a total of US$ 21 billion was invested in wind power projects. This represents a 40% increase on 2008 capacity levels. What is more impressive is that the industry made these impressive gains in spite of the financial crisis and significant reductions in wholesale electricity prices, which have continued into 2010. However, the rise in capacity levels and investment have been aided by a number of factors, including the Recovery Act.

The US is leading China in terms of total wind power capacity, but China has overtaken them with new additions. In 2009 the US provided 26% of the world market for new additions, behind China with 36% of market share. However, cumulatively, the US still leads with 35,000 MW of wind power capacity, followed by China with 25,853 MW, and Germany with 25,813 MW.

Texas achieved the highest rate of new additions to capacity, with 2476 MW coming online. Iowa has achieved the highest rate of in state capacity, with 19.7% of electricity coming from wind power. Domestic turbine and component manufacturing also showed growth in 2009, but it was held back by the state of the economy. In spite of this, seven out of the 10 largest wind turbine manufacturers with market share in the US have one or more manufacturing facilities in the US.

Wind turbine prices have risen since hitting a historic low at US$ 700/KW in 2002/2003, prices rose by US$ 800/KW in 2009, over a 100% increase. However, there is evidence that prices may now begin to drop, and a 15% decline in prices along with more favourable contracts is predicted to drive down the cost of future wind projects.

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