The US Department of Energy has launched two reports on the status of the US wind energy market.
The reports conclude that while more robust growth in wind power capacity additions can be expected in 2014 and 2015 compared to 2013, growth beyond these years is uncertain.
At the same time, the reports point out that the relative competitiveness of wind power has improved, with purchase agreement prices in the US reaching all-time lows, at US$25/MWh in 2013.
August 2014: The US Department of Energy has launched two reports on the status of the US wind energy market. The reports conclude that while more robust growth in wind power capacity additions can be expected in 2014 and 2015 compared to 2013, growth beyond these years is uncertain. At the same time, the reports point out that the relative competitiveness of wind power has improved, with purchase agreement prices in the US reaching all-time lows, at US$25/MWh in 2013.
The publication, titled ‘2013 Wind Technologies Market Report,’ describes the trends, performance, market drivers and future outlook of the US wind energy industry in 2013. The ‘2013 Distributed Wind Market Report’ provides a similar account on the status of the US distributed wind market in 2013.
While observing that the next couple of years will see a number of wind power projects supported by the production tax credit (PTC) commissioned, the technologies market report describes prospects for growth beyond 2015 as uncertain given the expiration of the PTC. Other factors depressing growth expectations include low natural gas prices, modest electricity demand growth, and limited near-term demand from state renewables portfolio standards. These factors, together with the globalization of supply chains, also impact on domestic manufacturing of wind equipment.
The report concludes that the implications of these trends for wind power capacity additions through the end of the 2010s and beyond will be partly determined by natural gas prices, fossil fuel plant retirements and policy decisions. However, it points out that recent improvements in the cost and performance of wind power technologies will boost near-term additions, and declining costs and potential for continued technological advancements have improved future growth prospects.
According to distributed wind market report, the 30.4 MW of new distributed capacity added in 2013 represent a 83% decline from 2012, caused by, inter alia: competitive solar photovoltaic and natural gas prices; lack of consumer confidence in wind turbine reliability; phasing out of incentives; and reduced funding. It notes that, between 2003-2013, a total capacity of 842 MW of wind turbines was installed in distributed applications in the US.
According to the US Department of Energy, the US has the world’s second largest installed wind capacity that caters for nearly 4.5% of the country’s total electricity demand. In 2013, US wind industry investments totalled US$1.8 billion. [US Department of Energy 2013 Wind Report Website] [Technologies Market Report Website] [Publication: 2013 Wind Technologies Market Report] [Distributed Market Report Website] [Publication: 2013 Distributed Wind Market Report] [Publication: 2013 Distributed Wind Market Report Fact Sheet]