Midwestern Wind Energy: Moving it to Markets
Wind Power and Transmission 101 Workshop
Wind Industry Overview
Michael Goggin
Electric Industry Analyst
American Wind Energy Association
July 30, 2008
The American Wind Energy Association ● www.awea.org
Who is AWEA ?
• American Wind Energy Association
– www.awea.org
• National Trade Association for Wind
Industry
– Legislative / Lobbying
– Education & Outreach
– Member Services
• Currently >1500 business, utility,
academic, and non-profit members
The American Wind Energy Association ● www.awea.org
Outline of Presentation
•
•
•
•
Introduction
Wind Power Market Overview
Benefits of Wind Power
Policy Environment
The American Wind Energy Association ● www.awea.org
Wind Growing Worldwide
100000
1. Germany: 22,247 MW
90000
80000
2. U.S.: 16,818 MW
70000
3. Spain: 15,145 MW
60000
4. India: 8,000 MW
50000
5. China: 6,050 MW
Rest of World
Europe
United States
40000
30000
20000
10000
0
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: GWEC Global Market Report
As of December 31, 2007
The American Wind Energy Association ● www.awea.org
Wind Power Taking Off in U.S.
25000
20000
15000
Annual
Cumulative
10000
5000
0
1995
1996
1997
1998
1999
2000
2001
Source: AWEA Market Report
As of December 31, 2007
The American Wind Energy Association ● www.awea.org
2002
2003
2004
2005
2006
2007
2008
(proj.)
Annual Capacity Additions
The American Wind Energy Association ● www.awea.org
Texas Takes the Lead
The American Wind Energy Association ● www.awea.org
U.S. Wind Projects
The American Wind Energy Association ● www.awea.org
Industry Overview: Manufacturers
Turbine Market Dominated by Large Players
The American Wind Energy Association ● www.awea.org
Ownership Trend
The American Wind Energy Association ● www.awea.org
Energy Production Improving
The American Wind Energy Association ● www.awea.org
Capital Costs Over Time
The American Wind Energy Association ● www.awea.org
Benefits of Wind Power
Environmental
•
•
•
•
•
No air pollution (SO2,NOx,Hg)
No water pollution
No global warming impacts
No fuel = no mining / drilling
No water use
The American Wind Energy Association ● www.awea.org
Benefits of Wind Power
Economic Development
Case Study: 162MW Colorado Green
Project near Lamar, Colorado
•
$3,000-$6,000 per 1.5-MW turbine in
revenue to farmers
•
Up to 400 construction jobs and ongoing
15-20 O&M jobs
•
Sales tax revenues jumped 62% in one
year, from $95,000 to $154,450. The tax
base has increased by 29%.
Source: U.S. DOE report, “From Snack Bars to Rebar” by Craig Cox
The American Wind Energy Association ● www.awea.org
Benefits of Wind Power
Green Jobs
The American Wind Energy Association ● www.awea.org
Benefits of Wind Power
Cost Stability
• Known pricing offers
hedge against fuel price
volatility risk
• Electricity is inflation-proof
once wind project begins
to operate
• Utilities starting to value
this “price hedge”
The American Wind Energy Association ● www.awea.org
Benefits of Wind Power
Fuel Diversity
• Domestic energy
source
• Inexhaustible
supply
• Small, dispersed
design reduces
supply risk
• Reduced natural
gas consumption
The American Wind Energy Association ● www.awea.org
Policy Environment
• Federal Production Tax
Credit
• Renewable Portfolio
Standards / Renewable
Electricity Standards
• Climate Change
Legislation
• Transmission
The American Wind Energy Association ● www.awea.org
Federal Production Tax Credit
• Eligibility period now extended through
end of 2008. Provides 2¢ per kWh for 10
years of operation to wind plant owners
• Industry needs long-term extension to
encourage investment
• Lowers price of electricity to customers
• U.S. Congress needs to hear from you !!
The American Wind Energy Association ● www.awea.org
Federal Production Tax Credit
The American Wind Energy Association ● www.awea.org
State Renewable Standards
The American Wind Energy Association ● www.awea.org
Questions?
• Michael Goggin
• MGoggin@awea.org
• 202-383-2531
The American Wind Energy Association ● www.awea.org