2009 Wind Power Growth Close to 2008 Due to Spillover Effect

Despite the economic downturn, 2009 is likely to be a decent year for U.S. wind power development. Projects totaling 6.3 gigawatts have been activated thus far in 2009 and another 2 gw should be producing power by year’s end. However, roughly half of 2009’s installations are ‘spillover’ originally slated for 2008 but delayed due to supply and financing problems, according to Emerging Energy Research, an advisory and consulting firm based in Cambridge, Mass., and Barcelona. Ultimately, 2008 and 2009 are likely to end up neck and neck at roughly 8.3 installed gw each.

Earlier in 2009, wind experts believed that frozen financial markets would mean less than 6 gw total would be added in the U.S. this year. However, in addition to the spillover effect, installations received a boost from developers rushing to qualify for stimulus funds, the EER said. So far, nearly $1 billion of grant money has been awarded to wind projects, most of which began construction in 2008.

Decreasing power demand, a result of the financial crisis, is lowering wholesale power prices and unattractive offtake options (agreements to buy energy produced) may dampen wind development in 2010. However, stimulus grants and long-term policies favoring renewables should help counter these forces, according to EER. Construction activity is likely to surge before the end of 2010 because developers must have five percent of a given project’s construction underway in order to qualify for stimulus funds.

Wind power components remain an important project cargo in the U.S., particularly at Gulf Coast breakbulk ports. However, seven of the top ten global wind turbine manufacturers now have a U.S. manufacturing presence and 55 manufacturing facilities opened, expanded or announced during 2008. Nonetheless, wind power manufacturing in the U.S. “remains uncertain,” according to American Wind Energy Association CEO Denise Bode. “A firm, long-term national commitment to renewable energy is still needed for the U.S. to become a wind turbine manufacturing powerhouse and create hundreds of thousands of jobs.”

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