The World's #1 Renewable Energy Network for News, Information, and Companies.

DOE Wind Report: 67 Percent Domestic Content in Wind Turbines

The U.S. Department of Energy's (DOE) latest annual report for wind power depicts an energy source being threatened by policy uncertainty — yet one that is now conventional, driven by the continuing trends of downward prices and more of the technology's components being made in America.

The DOE Wind Technologies Market Report for 2011 generally tracks with the numbers of AWEA’s Annual Market Report released in the spring. The government report also provides information on such areas as domestic content for wind turbines and the overall cost of wind energy.

Facing looming policy uncertainty beyond 2012, when the wind energy Production Tax Credit is slated to expire, the U.S. remained one of the fastest-growing wind power markets in the world in 2011 — second only to China — according to the report, which was prepared by Lawrence Berkeley National Laboratory. Over 6,800 MW of new wind power capacity were connected to the U.S. grid in 2011. Also tracking with AWEA’s analyses, new wind power installations are widely expected to be substantially higher in 2012 than in 2011.

But the report’s most intriguing numbers, perhaps, don’t involve megawatts. In spite of the PTC uncertainty wreaking havoc on the supply chain, turbine manufacturers continued to move their sourcing activities to the U.S. last year, with 67 percent of the equipment used in U.S. wind power projects now sourced domestically, up a strong 7 percent from the 60 percent threshold hit the previous year and nearly doubling the 35 percent number reported for 2005-2006. That trend is not surprising when considering the 500 U.S. factories now serving the wind industry, as reported in the AWEA report. However, noted Ryan Wiser, staff scientist at Berkeley Lab and co-author of the report, “[B]ehind these positive headline numbers, the domestic wind industry supply chain is currently facing severe pressure, due to uncertain prospects after 2012.” 

That uncertainty is the result of the pending expiration of the PTC. AWEA and the wind energy industry are working full-force to ensure an extension to wind energy’s primary policy driver.

The DOE report noted wind power’s stature as a “credible” source of new generation, comprising about a third of all new U.S. electric capacity additions in 2011, according to the report. During the last five years wind power’s contribution has been 35 percent. Last year’s installations represented $14 billion in new investment, according to the report, which also noted that wind power currently contributes more than 10 percent of total electricity generation in six states (with two of these states above 20 percent), and now provides more than 3 percent of total U.S. electricity supply.

The DOE report, which is available online, also highlighted lower wind turbine prices as well as PPA prices.

This article was originally published in AWEA's Wind Energy Weekly and was republished with permission.

Lead image: Wind turbine assembly via Shutterstock

RELATED ARTICLES

Rooftop Solar Panels

Hypocrisy? While Buffett Champions Renewables, His Company Fights Rooftop Solar

Mark Chediak, Noah Buhayar and Margaret Newkirk, Bloomberg Warren Buffett highlights how his Berkshire Hathaway Inc. utilities make massive investments in renewable energy. Meanwhile, in Nevada, the company is fighting a plan that would encourage more residents to use green power.
Renewable Energy Finance

Clean Energy ETFs Are on a Tear

Eric Balchunas, Bloomberg Green investing used to be synonymous with losing money. But while the S&P 500 Index is up 2 percent this year, and the MSCI All-Country World Index is up 5 percent, clean energy ETFs have double-digit re...

Wheels, Towers and Trees: Unconventional Renewable Energy Technologies in the Pipeline

Andrew Williams, International Correspondent A number of companies around the world are developing novel technologies in an effort to grab a slice of the global renewable energy market.  Although many of these technologies are simple incremental improvements to e...
UK Parliament Clean Energy Leaders

UK Government Names Clean Energy Cabinet Members

David Appleyard, Contributing Editor With the UK general election now over and a majority Conservative Party government in place, the re-elected Prime Minister David Cameron has now named key members of the government charged with steering the UK’s clean energ...
Carl is Editor & Publications Manager at the American Wind Energy Association, where has worked since 2006. At AWEA he oversees AWEA's online and print publications including the Wind Energy Weekly, Windpower Update, and other products. He has wor...

CURRENT MAGAZINE ISSUE

03/01/2015
Volume 18, Issue 3
file

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Doing Business in Brazil – in partnership with GWEC, the Global Win...

Brazil is one of the most promising markets for wind energy.  Ranke...

Energy Storage USA 2015

Energy Storage USA is the leading conference in the United States focuse...

Wind Power Central America

Wind power projects are expected to reach 46GW of total installed capaci...

COMPANY BLOGS

SunEdison Expands Residential Market Offerings with New PPA, Sales ...

SunEdison has largely focussed on the commercial and utility-scale solar...

Are You Ready for a Natural Disaster?

Guest post by Jenna Clarke  Living in the Shenandoah Valley of Virg...

Deadline for Inclusion in Solar Power World's Top Solar Contractors...

UPDATE: The official deadline for the Solar Power World T...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS