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US Economic Stimulus Funding Increases Wind Power Development

Tue, Dec 1, 2009

Renewable Power, Wind Power

US Economic Stimulus Funding Increases Wind Power Development

The American wind energy Association (AWEA) is excited about the recent surge in wind farm development due to the US renewable energy grant program. It did however add a caveat that fourth-quarter wind development will likely not be as strong since wind turbine manufacturing output is well below what it achieved in 2008.

The American wind power industry created 1649 MW of new production power during the third quarter, and that is an increase from 1210 MW in the previous quarter, and also 1389 MW in the 2008 third-quarter. So far in 2009, 5800 MW of wind power production has been added. That means the total capacity of United States wind power is better than 31,100 MW, so says the AWEA, based out of Washington, DC.

Congress made a change to the tax code, which allows wind, biomass, and other alternate forms of energy projects the ability to garner investment tax credits – that were previously intended for solar power projects – rather than receiving tax credits used against energy creation. Within the stimulus package put together in February, the government also said developers of these projects could receive cash installments rather than tax credits.

Since this announcement was made in the beginning of July about grant program regulations, the wind industry has achieved over 1600 megawatts of finished ventures and more than 1700 MW of projects under construction. These jobs, work out to roughly 6$.5 billion in investment funding, so says AWEA.

There has been a near immediate reaction from those who develop wind projects regarding new project activity for wind power. What cannot be ignored, according to an AWEA spokesperson, is that work still remains to be done. Program grants are still coming, but as yet there is no long term consistent policy instituted.

There is over 5000 MW of wind production capability currently being built that should be completed sometime this year, or in to 2010. Nevertheless, this is still almost 38% lower from the 8000 MW plus that was under construction last year at this time.

The wind power sector put in place a current high of 8358 MW of production capacity in 2008, and this record number is not expected to be surpassed in 2009.
Given the fact the entire world has been hit by serious financial disaster in the last year or two, this lack of production capacity really shouldn’t surprise. On the same token, this is still not a bad year for wind power facilities being developed.

The state of Texas, eagerly getting involved in renewable energy projects, installed the most new wind power capability in the third quarter, achieving 436 MW; they were closely tracked by the state of Oregon with 251 MW and the state of Illinois at 201 MW. Texas also accounted for the most total wind capacity coming in with 8797 MW, Iowa was in second place with 3053 MW trailing in third place was California coming in at 2787 MW.

Any sort of increase in renewable power production is welcomed by the Green community regardless of economic circumstances. The new administration in Washington is striving to reach new alternative energy objectives, and if the stimulus money has a positive effect on the industry, so much the better.

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RPN's contributed to this report.


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