Wind: Powering a Cleaner,
Stronger America
American Wind Energy Association, 2008
The American Wind Energy Association ● www.awea.org
Trade Association
Overview
The American Wind Energy Association ● www.awea.org
The National Trade Association
representing the Wind Industry in
the U.S.
Over 1300 Business Members, including:
– Turbine Manufacturers
– Component Suppliers
– Project Developers
– Electric Utilities
– Lawyers, Consultants, Investors, etc.
The American Wind Energy Association ● www.awea.org
Trade Associations Facilitate Business for
Members by:
• Using Policy as Leverage on the Market
• Providing Liaison to the Press and key audiences such as:
– Policy Makers (Congress and other Federal agencies)
– Electric utilities/the Customer
– Financial Community
• Networking Events
– Organizing Annual Conference and Exhibition
– Various Workshops throughout the year
• Providing Information and Education through
– Publications
– Web site www.awea.org
• Developing Technical Standards (Proposed “Grid Code”)
The American Wind Energy Association ● www.awea.org
AWEA MEMBER BENEFITS
• Committees and Working Groups
– Legislative
– Transmission
– Education
• Education Resources and Networking Events
– WINDPOWER 2008 – Annual Conference & Exhibition
– Workshops: finance, transmission, siting, etc.
• Member Services
–
–
–
–
–
Members only site
Careers in Wind Job Board
Online Store
Wind Projects Database
News Room: Media Outreach, Wind Energy Weekly, WindLetter
The American Wind Energy Association ● www.awea.org
Wind Power
Market Overview
The American Wind Energy Association ● www.awea.org
Wind Growing Worldwide
100000
90000
1. Germany: 22,247 MW
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
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
Rest of World
Europe
United States
Wind Power Taking Off in U.S.
25000
20000
15000
Annual
Cumulative
10000
5000
0
1995
1996
1997
1998
1999
2000
2001
2002
Source: AWEA Market Report
As of December 31, 2007
The American Wind Energy Association ● www.awea.org
2003
2004
2005
2006
2007
2008
(proj.)
Installed Utility-Scale Wind Power as of December 31, 2007
Washington
1163
Total 16,818 MW at 12/31/07
Montana
146
Oregon
885
Idaho
75
Wyoming
288
Utah
1
North
Dakota
345
South
Dakota
98
Nebraska
Nebraska
20
73
Colorado
1067
California
2439
New Mexico
496
ME
42
Minnesota
1299
Kansas
364
Oklahoma
689
VT
6 NH
1
Wisconsin
53
Michigan
3
Iowa
1273
Illinois
699
New York
425
Pennsylvania
294
Ohio
7
WV
66
MA
5
Rhode
Island
1
New Jersey
8
Missouri
57
Tennessee
29
> 1,000 MW
100 MW-1,000 MW
Texas
4356
Alaska
2
Hawaii
63
The American Wind Energy Association ● www.awea.org
< 100 MW
Driving Forces Behind
Wind’s Growth
• Wind’s steadily improving economics
– Federal production tax credit
– Bigger turbines
– More productive turbines
• Benefits to utilities from wind in mix
– No fuel cost
– No environmental costs/degradation
– Popular with customers
• Fossil fuel prices increasing/volatile
• Federal and state policy initiatives
The American Wind Energy Association ● www.awea.org
Federal and State Policies
to Promote Wind Power
The American Wind Energy Association ● www.awea.org
Federal
Production Tax Credit (PTC)
• Eligibility period now extended through end of 2008.
Provides 2¢ per kWh for 10 years of operation to
wind plant owners
• Lowers price of electricity to customers
• Industry needs long-term extension to encourage
investment
The American Wind Energy Association ● www.awea.org
Historic Impact of PTC Expiration on Annual
Installation of Wind Capacity
The American Wind Energy Association ● www.awea.org
Renewable Portfolio Standard
(RPS)
• Requirement that utilities supply a portion of their
electricity from renewable resources by a certain date
• Would create stable market for wind, which would
drive down cost of energy
• Texas good example of how RPS can drive
development
• Creates incentive to solve implementation issues
• 26 states and D.C. have RPS policies
The American Wind Energy Association ● www.awea.org
Transmission Grid
Operating Rules
• Nondiscriminatory interconnection of new generation
facilities
• Real-time balancing markets instead of schedule
deviation penalties
• Elimination of rate “pancaking” and allocation of
transmission facilities’ costs to end-use customers
rather than generators
• Equitable allocation of congested capacity among
competing users
The American Wind Energy Association ● www.awea.org
Clean Energy Superhighways
New transmission
lines built to take
advantage of the
nation’s wind
resources could
access tens of
thousands of
megawatts of new
wind capacity
The American Wind Energy Association ● www.awea.org
Climate Policy
• AWEA is involved in clean air and global warming
policy to make sure that wind power projects are
recognized for their zero-emissions energy generation
and allocated emission allowances
• Wind energy can be included by allocating allowances
based on generation output, which creates an incentive
for efficient and clean energy sources
• Wind power is readily available to deliver zeroemissions electricity on a large scale
The American Wind Energy Association ● www.awea.org
Green Power Market
• Green Pricing
– No competition, utility offers customers choice
of supporting wind power construction
• Green Marketing
– In competitive market, customers empowered
to choose service providers that contract to
purchase renewables
• Green Tags
– Environmental attributes purchased
separately from electricity
The American Wind Energy Association ● www.awea.org
Small Turbine Incentives
• Investment tax credit
• Buy-down programs
• Sales tax exemptions
• Model zoning
ordinances
• Reasonable
interconnection
standards
• Net metering
The American Wind Energy Association ● www.awea.org
Future of Wind Energy
in U.S.
The American Wind Energy Association ● www.awea.org
20% Vision:
Cumulative Capacity Installed
Preliminary:
fromEnergy
forthcoming
report
The
American Wind
Association
● www.awea.org
20% Vision:
Market Growth Potential
Onshore
Offshore
Total MW
239,500
53,900
Total Number
of Turbines
79,130
17,975
Preliminary:
fromEnergy
forthcoming
report
The
American Wind
Association
● www.awea.org
20% Vision:
Policy & Market Challenges
• Establishing Stable Policy
• Addressing Value Chain Challenges
• Building Transmission
• Addressing Challenges associated with Wind’s
Variability
• Meeting Siting Challenges
• Improve Wind’s Ability to Compete on Cost
The American Wind Energy Association ● www.awea.org