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U.S. Wind Market Boomed in 2012

Ucilia Wang, Contributing Editor
January 31, 2013  |  10 Comments

Wind power remains the king of renewable energy generation in the United States. Project developers installed 13.1 GW of wind turbines in 2012, a 28 percent growth from the year before, according to the American Wind Energy Association.

The fourth quarter of last year was particularly busy as 8,380 MW of wind energy generation materialized. That doubled the 4,113 MW added in the last quarter of 2009, the association said in a report released Wednesday.

Overall, the U.S. has about 60 GW of wind energy generation capacity, though that doesn't speak of the amount of electricity that flows from the wind turbines. The turbines will start to turn and generate electricity only when there is a strong enough wind. The intermittent trait of wind energy generation, along with solar energy production, remains a challenge for utilities to manage and integrate them into the electric grid. The grid runs smoothly when it achieves a balance of supply and demand.

Wind energy does out-produce other forms of renewable electricity. Wind farms generated 120.2 terawatt-hours of energy in 2011, compared to 1.8 terawatt-hours of solar, according to the U.S. Energy Information Administration. For the first 11 months of 2012, wind turbines across the country produced 125.9 terawatt-hours of electricity, compared with 4.1 terawatt-hours of solar during the same period.

A fear of losing a federal production tax credit (PTC) drove much of the frenzy to complete projects before the end of 2012. For a while, it seemed destined to disappear at the turn of the new year. The tax credit, worth 2.2 cents per kilowatt-hour, was then saved by the bill to prevent the so-called "fiscal cliff" earlier this month. The one-year extension also changed the rules: wind farms that begin construction 2013 but won't finish until 2014 or later will still be eligible to claim the credit. Previously, only wind farms that were completed before the end of 2012 could claim the credit.

The federal government first offered the PTC in 1992 to help the fledging wind energy industry. Congress has extended over half a dozen times and seems to be the subject of the perennial debate over how much the government should subsidize renewable energy generation. Renewable energy advocates argue that the government should continue its financial support of renewable energy production because renewable energy leaves a smaller carbon footprint. Beyond that, they point out that the fossil fuel industry gets a greater amount of government incentives.

It will be a long while yet before renewable electricity will get anywhere near the production levels of power from fossil fuels or nuclear. Renewable electricity accounted for 13 percent of the total electricity generation in the U.S. in 2010, and that slice should grow to 16 percent by 2040, said the Energy Information Administration. Coal-based power generation is set to decline while natural gas power plants will increase their dominance to 30 percent of the country's total electricity generation by 2040. Back in 2010, natural gas fueled 25 percent of the power generation.

The wind energy association noted a growing interest by large businesses to install their wind turbines or contract to buy wind energy. More schools and universities also have signed power purchase agreements. The association counted 18 companies that have bought wind energy, as well as at least 11 schools and colleges.

Texas retains the top spot for wind energy generation, followed by California, Iowa, Illinois and Oregon.  Texas added 1,289 MW of wind in the fourth quarter of 2012 while California installed 994 megawatts.  The No. 3 most active wind construction state at the end of 2012 was in fact Kansas, followed by Oklahoma.

The association declined to issue an installation forecast for 2013. 

10 Comments

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John Nistler
John Nistler
February 12, 2013
Dear Bert,
Not challenging your claim, just trying to figure it out. With Windmills baseplate generation at 3.5 MW, I have a hard time understanding how over 896,000 MWh would be required for manufacturing (this is conservative based on 320 wind days per year and only 8 hours per wind day). This is equivalent to a 900 MW coal plant supplying power only to build one wind turbine for a total of 1000 hours or 42 - 24 hour production days. It only takes 24 hours to build one prop and most of that is in drying time. (Fiberglass moulding). The Turbine takes time to machine the parts, but 900,000 MWh of power? Just does not add up.
Gerard Vaughan
Gerard Vaughan
February 12, 2013
To actually help - as opposed to looking like a lot is being done - we need SELF-sustaining energy providers. "Sustainable" - by the energy sources which they are supposed to replace - is sheer banality which no-one seems to be pointing-out !!
To be self-sustaining, a system needs to provide the energy that was required to create it, in a time-period much smaller than its operational life. Windfarms, for example, - according to a very believable public meeting in Llandeilo, uk 2005, take many hundreds of years to do this.
A sensible design of turbine alternator in a reasonable site will provide this energy in 10 to 20 years. bertdotwindonatgmaildotcom
Penny Melko
Penny Melko
February 7, 2013
When are the manufacturers going to put protective shields over the propellers and quit slaughtering all the raptors, songbirds, bats and bugs? Turbines are king alright, the king of destruction of our environment.

Now the so called renewable energy robber barons are ready to destroy the only desert in the United States.
http://www.drecp.org/whatisdrecp/
John Nistler
John Nistler
February 7, 2013
@Doggydogworld, a very good point. EIA does not report kWh production used by households or business, only power officially reported to them as being generated and put on the grid. If you look at the data provided by the Solar Energy Industry Association, http://psida.webs.com/apps/photos/photo?photoid=173942262 you would have to wonder how much of the residential and commercial production by solar power is actually reported by the EIA. In addition, if you look at EIA's actual data associated with Coal and Natural Gas generation you see a general downward trend in total power being produced per person. http://psida.webs.com/apps/photos/photo?photoid=157644452

Efficiency improvements contribute to this downward trend in power generation per person, but all those solar powered gates, fences, rooftop systems, solar security lights, solar floodlights and traffic lights are not being included in the EIA data.
Quentin Prideaux
Quentin Prideaux
February 1, 2013
"NG generation has resulted in the US achieving unprecedented reductions in annual CO2 emissions, and without any real economic penalties."

Nothing like the reductions we still need, and of course methane burning (natural gas) is as bad for the climate as coal While the CO2 is low the much much more dangerous methane leaks out of the entire supply chain. There is no fossil fuel future for the planet, which is why the mix of renewables will either be 50-75% by 2040 (rather than 16) or our society will be pretty much over.

The good news - economists have never ever been correct about these sorts of projections. They have been out by factors of 10x to 40x on the growth of renewable so far, and I am sure they are now too. Easy to take the projections of today's large companies (all fossil fuels) and tweak a little, hard to project what happens when we correctly recognize renewables as -ve cost / free energy compared to dead dinosaurs.
DoggyDog World
DoggyDog World
February 1, 2013
Hi Ucilia, less than 2 years the EIA projected natgas usage in electricity generation would DECLINE from 2010-2025. Instead it has exploded. Maybe fracking is just a fad and EIA forecasts will prove valid in the end. Just don't bet your 401k on it :)

Natgas usage is +38% and coal -25% in the past 4 years. Some of this is just fluctuation, as you note. But other than a 1.5% drop in 2008's financial crisis, natgas usage has increased every year since 1996 . The EIA now says pricing will drive natgas usage lower (and coal higher) in 2013 and 2014, and it well may. But it's just as likely, IMHO, that natgas will actually exceed coal within five years. That was unthinkable only a decade ago when coal usage was 3x natgas.
Ucilia Wang
Ucilia Wang
February 1, 2013
@Doggydogworld: Natural gas's marketshare will fluctuate from now until 2040. If more renewables come online and coal remains a big source, then the natural gas share won't stay at 31% every year until 2040. The 30% is a projection by the EIA.
DoggyDog World
DoggyDog World
February 1, 2013
The EIA puts out all the stats you could want (well, almost):

http://www.eia.gov/electricity/monthly/index.cfm

Wind provided 3.4% of our electricity in the 12 months ending 10/31/12. Solar shows a miniscule 0.1%, but I'm almost certain this excludes residential (and most commercial) rooftop.

Not sure why the article says natural gas will hit 30% by 2040. It's at 31% already!
Tom Lakosh
Tom Lakosh
February 1, 2013
I agree with Anon that a broader set of stats are required to show the relative cost/contributions of renewables and fossil fuels. Stats for capacity factors, cost per KWh, transmission costs, externality costs and contribution to peak load dissipation are important to assessing the relative contributions of different renewables vs. base load and rapid dispatch fossil fuel power generation. For example, solar may cost more per KWh but is generally more available during peak loads that would otherwise require high cost gas turbine power with carbon pollution externalities. The analysis could even reach local or typical conditions that would show a greater ability of certain renewables and associated storage systems to provide a more valuable contribution to peak load power generation. In the final analysis, if fossil fuel externalities will cause a collapse of our society from inevitable widespread crop/infrastructure/ecosystem failures due to high temperatures, droughts and floods, we need to have these analyses in time to avert unwise power generation investments. These types of comprehensive analyses are clearly needed to proffer cogent arguments for/against any one of several generation options.
ANONYMOUS
January 31, 2013
It's good to see commercial wind growing in the US. But I'd also like to see more honest reporting of the real contributions of wind versus conventional sources like NG. It would be good to see a comparison of total power generated, relative cost to users, and a comparison of tax revenues versus subsidies for each.

While the effect is temporary, the rapid large-scale transition from coal to NG generation has resulted in the US achieving unprecedented reductions in annual CO2 emissions, and without any real economic penalties.

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Ucilia Wang

Ucilia Wang

Ucilia Wang is a California-based freelance journalist who writes about renewable energy. She previously was the associate editor at Greentech Media and a staff writer covering the semiconductor industry at Red Herring. In addition to Renewable...
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