Largest-ever crop of wind farms under construction, building U.S. industry’s momentum
The American wind energy industry responded to the extension of the Production Tax Credit in 2013 by starting construction on an historic and unprecedented number of new wind farms, backed by Power Purchase Agreements with electric utilities on a record scale by the close of the year.
“These results show the Production Tax Credit continues to be an effective and efficient policy, driving billions of dollars in private investment into our economy, fostering a new U.S. manufacturing sector, and creating economic benefits for communities across America,” said AWEA CEO Tom Kiernan as the American Wind Energy Association (AWEA) released its U.S. Wind Industry Fourth Quarter 2013 Market Report
The record growth for wind energy at the end of 2013 resulted not only from the extension of the Production Tax Credit (which provides up-front tax relief of 2.3 cents per kilowatt-hour for the first 10 years of a project), but also from investments in technological advancements that have driven down the cost of wind energy by 43 percent in just four years. “Our current growth demonstrates how powerful the tax credit is at incentivizing investment in wind energy,” Kiernan said. “Now it’s up to Congress to ensure that growth continues by extending this highly successful policy.”
Highlights from the U.S. Wind Industry Fourth Quarter 2013 Market Report include:
- At the end of 2013 there were more U.S. wind power megawatts (MW) under construction than ever in history: Over 12,000 MW of new generating capacity was under construction, with a record-breaking 10,900 MW starting construction activity during the fourth quarter. The wind projects under construction could power the equivalent of 3.5 million American homes, or all the households in Iowa, Oklahoma and Kansas.
- A record number of long-term power purchase agreements (PPAs) were signed in 2013. At least 60 PPAs for nearly 8,000 MW were signed by utilities and corporate purchasers, of which 5,200 MW have not yet started construction.
- Some of the states poised for major growth in wind energy in coming years include Texas, Iowa, Kansas, North Dakota, and Michigan.
- There are now over 5,600 MW of turbine orders placed, with major manufacturing facilities active in places such as Colorado, Kansas, Iowa and South Dakota.
- U.S. manufacturing production capacity has ramped up significantly, and the largest turbine order in history of the U.S. wind industry was placed in the Fourth Quarter.
Read the rest of the summary: www.awea.org/MediaCenter/pressrelease.aspx?ItemNumber=6044
Filed Under: Financing, News, Policy