2Sustain

Last year was another record-breaking year for US wind power additions, and a growing percentage of wind turbine equipment used here is being sourced domestically, according to a new report released earlier this month by the US Department of Energy (DOE).

The “2009 Wind Technologies Market Report,” authored primarily by DOE’s Lawrence Berkeley National Laboratory, reveals that:

• 10 gigawatts of capacity has been added, representing a $21 billion investment in new wind power projects, and enough capacity to power the equivalent of 2.4 million homes. This capacity growth was distributed across much of the nation, with new wind farms constructed in 28 states in 2009.

• Wind projects accounted for 39% of all new U.S. electric generating capacity in 2009, and wind energy is now able to deliver 2.5% of the nation’s electricity supply.

• Both domestic and foreign companies are seeking to minimize transportation costs and currency risks by establishing local manufacturing capabilities. When presented as a fraction of total wind turbine equipment-related costs, the overall US content is found to have increased from about 50% in 2008 to roughly 60% in 2009.

• This market growth is spurring manufacturing investments domestically. In fact, seven of the ten wind turbine manufacturers with the largest share of the US market in 2009 have manufacturing facilities here, and two of the remaining three have announced plans to open US facilities in the future.

Not all of the news in the report is as rosy, however. The DOE concludes that the near-term economics of wind energy remain a challenge, thanks to rising wind power prices and lower wholesale electricity prices. The report predicts that 2010 will be a slower year for wind power, but that the market is likely to be resurgent in 2011 and 2012, as programs funded by the American Recovery and Reinvestment Act of 2009 mature and financing constraints continue to ease.

The full report is available here.