According to Environmental Finance, the U.S. is now the leader in wind energy generation with total installed wind power capacity currently at 19,549MW, up 2,726MW from the end of 2007. And although Germany has more installed generating capacity, the U.S. actually produces more electricity due to stronger winds. Further, "U.S. wind capacity is expected to increase 45% in 2008 although Congress' failure to extend the production tax credit (PTC) for the renewable energy industry threatens to derail further development, according to the American Wind Energy Association (AWEA)."
In large part, the rising cost of fossil fuels has helped drive wind installation as renewables become increasingly price competitive. But it's not just fossil fuel generated energy against which wind comes out favorably. David McClellan at SolveClimate gives a detailed cost comparison of nuclear versus wind energy. He finds that "nuclear energy will soon no longer be cost competitive with wind energy if present trends continue." This is because the cost for new nuclear plants is doubling and tripling while the cost of new wind is rising at a much lower rate, both being impacted by rising prices of steel and concrete.
Despite all of this good news on wind, there is a grey lining:
The rapid growth of the wind energy industry, however, is being threatened by the inability of Congress to pass legislation to extend the PTC for renewable energy projects, he said. The PTC is set to expire at the end of 2008, and many projects are being rushed to completion by the end of this year, Swisher said [American Wind Energy Association (AWEA) executive director Randall Swisher].
Investment in new wind energy projects beyond 2008 has stalled due to the failure to extend the credits, Swisher said. "If there is a great deal of uncertainty in the market and in policies in the market, that investment capacity will be deployed elsewhere", he said. "It's just ludicrous that the Congress is letting this opportunity slip away." - Environmental Finance
The private sector may be picking up the slack however.
Clean energy companies have continued to attract record investment at a troubled time for the world economy, according to figures from New Energy Finance (NEF).
Venture capital and private equity investment in the sector hit a record $5.8 billion in the three months from April to June, up from $2.6 billion in the first quarter, the London-based analysis firm said. - Environmental Finance
Over the past 18-months, investment in wind alone has seen a significant increase with 41 new or expanded facilities creating more than 9000 new jobs, despite an overall sluggish economy. Solar thermal has also seen a boon in investment, with just 3 U.S. firms, BrightSource, eSolar and Sopogy raising over $244 million in the 2nd quarter of this year. The big investment winner last quarter was Portuguese wind energy company EDP Renovaveis, which raised a staggering $2.4 billion and signed a power purchasing agreement with PG&E last month through its Horizon Wind Energy subsidiary.
Texas oil billionaire T. Boone Pickens, who recently shook up the energy world with an announcement that he was building the largest wind farm in the U.S. and that it was time to get off of oil (with the very memorable line - "we can't drill our way out of this one"), is also looking at solar as part of his long term energy investment strategy. Pickens has also been traveling the country promoting the "Pickens Plan" to end American dependence on foreign oil through the use of natural gas to power cars and wind for electricity production. And Pickens is with the AWEA on tax incentives for alternative energy:
Pickens said he hopes to break a political stalemate on U.S. energy policy, calling Wednesday's move by Republicans in Congress blocking tax incentives for alternative energy "just sad" and an example of the lack of leadership on energy. - Reuters
In the meantime, America's ascendancy in wind energy production and the increasing levels of private investment in renewables are both good news, indeed.
Further Reading:
- Will Africa Be The Hub For a Green, Global "Super Energy Grid"?
- Advanced Turbine Shape Inspired by Whales
- Wind Power - Brittannia Project
- Nature Inspires Solar Power Revolution
- Utah's Solar Fired Furnace to Power California for Less Than the Cost of Coal or Gas
- Solar Thermal Power Coming to a Boil
- Wind Power From Kites
