As state lawmakers examine legislation to expand Nebraska’s wind energy industry, last year was a record-breaking year for the nation’s wind energy industry.
According to the American Wind Energy Association (AWEA), the U.S. wind energy industry “shattered” all previous records in 2008 by installing 8,358 megawatts (MW) of new generating capacity (enough to serve more than 2 million homes).
In Nebraska, AWEA reports that the state, as of Dec. 31, 2008, had a wind-power capacity with existing projects of 73.38 MW, with the construction of the Elk Ridge project adding another 81 MW this year.
Last year, Nebraska ranked 24th in the nation in wind-energy production, but sixth in the nation in wind energy potential.
According to AWEA, the growth in 2008 increased the nation’s total wind power generating capacity by 50 percent and channeled an investment of some $17 billion into the economy.
But, as the nation’s economy slowed in the last quarter of 2008, AWEA reported that financing for new projects and orders for turbine components “slowed to a trickle and layoffs began to hit the wind turbine manufacturing sector.”
“The U.S. wind energy industry’s performance in 2008 confirms that wind is an economic and job creation dynamo, ready to deliver on the president’s call to double renewable energy production in three years,” said AWEA CEO Denise Bode.
At the same time, she said, “It is clear that the economic and financial downturn have begun to take a serious toll on new wind development.”
Bode said quick action on the stimulus bill is vital to restore the industry’s momentum and create jobs.
According to AWEA, new wind projects completed in 2008 account for about 42 percent of the entire new power-producing capacity added nationally last year and will avoid nearly 44 million tons of carbon emissions, the equivalent of taking more than 7 million cars off the road.
The amount that the industry brought online in the fourth quarter alone — 4,112 MW — exceeds annual additions for every year except 2007, AWEA reported.
“In all, wind energy generating capacity in the U.S. now stands at 25,170 MW, producing enough electricity to power the equivalent of close to 7 million households and strengthening our national energy supply with a clean, inexhaustible, homegrown source of energy,” AWEA officials said.
Iowa, with 2,790 MW installed, surpassed California (2,517 MW) in wind power generating capacity. The top five states in terms of capacity installed are now:
— Texas, with 7,116 MW
— Iowa, with 2,790 MW
— California, with 2,517 MW
— Minnesota, with 1,752 MW
— Washington, with 1,375 MW
Oregon moved into the club of states with more than 1,000 MW installed, which now counts seven states: Texas, Iowa, California, Minnesota, Washington, Colorado, and Oregon, according to AWEA.
The organization reports that about 85,000 people are employed in the wind industry today, up from 50,000 a year ago, and hold jobs in areas as varied as turbine component manufacturing, construction and installation of wind turbines, wind turbine operations and maintenance, legal and marketing services, and more.
“About 8,000 of these jobs are construction jobs, and a significant number of those will be lost in 2009 if financing for the pipeline of new projects is not quickly restored,” Bode said.
Wind power’s recent growth has also accelerated job creation in manufacturing, where the share of domestically manufactured wind turbine components has grown from less than 30 percent in 2005 to about 50 percent in 2008, AWEA said.
Wind turbine and turbine component manufacturers announced, added or expanded 70 new facilities in the past two years, including more than 55 in 2008 alone, according to AWEA. Those new manufacturing facilities directly created 13,000 new jobs in 2008.
“However, because of the recent slowdown in orders, wind turbine and turbine component manufacturers in different parts of the country are beginning to announce layoffs,” Bode said.
She said because wind projects can be built quickly, positive legislation from Congress will have immediate and visible effects.
“Looking forward, it will also be important for the new administration and Congress to put in place long-term, supportive renewable energy policies to make the new clean energy economy a reality,” she said.
Last week, National Farmers Union announced support for Sen. Chuck Grassley’s amendments that would make permanent the wind production tax credit (PTC).
NFU President Tom Buis said Grassley’s efforts would provide the means to reach the nation’s greatest potential for generating significant amounts of clean, renewable energy from wind and biomass.
Buis wants Congress to make the PTC applicable against active income, not just passive income, and fully refundable for community-based projects, such as in Nebraska.
“Many potential community-based projects are at an economic disadvantage, lacking sufficient levels of passive income necessary to fully utilize the PTC,” Buis said. “Additionally, it has become increasingly difficult to procure wind generators and associated equipment for community wind projects due to their relative small size and the shift toward large-scale development processes.”
Buis said renewable electricity generation from rural communities is a largely untapped resource.
“With the potential to supply significant amounts of U.S. energy needs within the near future, federal policies such as Grassley’s amendments, are necessary to foster the development of locally owned and community-based renewable electricity projects,” he said.
Renewable energy is nation’s leading source for electric generation
According to a new report from the U.S. Energy Information Administration, nonhydroelectric renewable energy, led by wind power, for the first time was the leading source of new electric generating capacity in the United States in 2007.
The study found that in 2007, electric power generation increased 2.3 percent, from 4,065 million megawatt-hours (MWh) in 2006 to 4,157 MWh in 2007.
Total net summer capacity increased by 8,673 MW.
Wind capacity accounted for 5,186 MW of this new capacity.
EIA reported that net generation produced by renewable energy sources, excluding hydroelectric generation, grew by 9.0 percent as compared to 10.5 percent growth in 2006.
Renewable energy accounted for 2.5 percent or 105 million MWh of total net generation in 2007.
This marks the fourth consecutive year in which renewables’ share of total net generation has increased, according to EIA.
In 2007, wood and wood derived fuels accounted for 39 million MWh or 0.9 percent of total net generation. These fuels continued to be the largest sources of renewable generation, accounting for 37.1 percent of total net renewable generation, excluding conventional hydroelectric generation.
Other biomass supplied 17 million MWh of net generation. It has declined from a 23 million MWh peak in 2000 to 17 million MWh in 2007.
Wind generation was the second largest renewable energy source, contributing 34 million MWh or 0.8 percent of total net generation in 2007.
EIA said it is rapidly gaining a larger share of total renewable generation. In 2007, wind accounted for 32.7 percent of total net generation from nonhydroelectric renewable sources, as compared to 4.3 percent in 1997.
