Wind becomes top source of new US power generation

Wind energy became the number one source of new US electricity generation capacity for the first time in 2012, according to reports released yesterday by the US Energy Department (DOE).

Wind energy represented 43 per cent of all new electric additions and accounted for $25 billion in US investment in 2012, according to the Wind Technologies Market Report and the Distributed Wind Market Report.

In the first four years of the Barack Obama administration, US electricity generation from wind and solar power more than doubled, leading to more US jobs throughout a number of sectors and at factories and power plants across the country.

According to industry estimates, the wind sector employs over 80,000 workers, including workers at manufacturing facilities up and down the supply chain, as well as engineers and construction workers who build wind installations.

''The tremendous growth in the US wind industry over the past few years underscores the importance of consistent policy that ensures America remains a leader in clean energy innovation,'' said energy secretary, Ernest Moniz.

Last year, over 13 gigawatts (GW) of new wind power capacity were added to the US grid, nearly double the wind capacity deployed in 2011. This tremendous growth helped the US total wind power capacity surpass 60 GW at the end of 2012 – enough capacity to power more than 15 million homes each year, or as many homes as in California and Washington state combined.

The report also finds that nine states now rely on wind power for more than 12 per cent of their total annual electricity consumption – with wind power in Iowa, South Dakota and Kansas contributing more than 20 per cent.

Texas added over 1,800 megawatts of wind power last year, more than any other state and remains a clear leader with over 12 GW installed at the end of 2012 - more than twice as much as California, the next-highest state.

The price of wind under long-term power purchase contracts signed in 2011 and 2012 averaged 4 cents per kilowatt hour – making wind competitive with a range of wholesale electricity prices seen in 2012.

The report finds that distributed wind in the US reached a 10-year cumulative installed capacity of more than 812 megawatts at the end of 2012 – representing more than 69,000 units across all 50 states.

Between 2011 and 2012, US distributed wind capacity grew by 175 MW, with about 80 per cent of this growth coming from utility-scale installations.

The 2012 Wind Technologies Market Report expects 2013 to be a slow year for new capacity additions, due in part to continued policy uncertainty and project development timelines. While the report notes that 2014 is expected to be more robust, as developers commission projects that will begin construction in 2013, it also notes that projections for 2015 and beyond are much less certain.