U.S. Wind Power Grew 44% Last Year

Katherine Ling, Greenwire reporter
January 17, 2008

Wind-power developers built enough new turbines last year to supply electricity to 1.5 million homes and pump $9 billion into the U.S. economy, an industry group said in a report today.

Wind capacity grew by 5,244 megawatts, or 44 percent, last year, the American Wind Energy Association said. U.S. wind generation now totals more than 16,000 megawatts, about 1 percent of the nation's electricity supply, and is found in 34 states.

Texas continues to lead the states in installed capacity with 4,356 megawatts -- followed by California, Minnesota , Iowa and Washington. Florida Power & Light developed the most projects last year, a total of 956 megawatts, the report said.

The association predicted at least an equal amount of growth this year, especially if Congress approves production tax credits for wind power. A multi-year extension of the tax credits was cut from the 2007 energy bill because Republicans objected that they were financed by reductions in oil and gas industry tax incentives.

The wind tax credits are set to expire this year, although Democratic leaders have said they will work on passing them this session -- perhaps as a part of the economic stimulus package currently being negotiated in the House.

Randy Swisher, the wind group's executive director, said the credits must be extended to "sustain this remarkable growth."

Also crimping the wind industry's growth is a shortage of parts, especially for turbines. The group said wind turbines are already sold out for the year, but it expects more manufacturers to enter the parts market to meet demand. Last year about 14 wind manufacturing plants began operations, the group said.

General Electric Co. led U.S. turbine manufacturers, providing 45 percent of the industry's sales last year, the report said.

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