CleanBeta

Wind Power in the US is Blowing Up

The American Wind Energy Association (AWEA) has just announced a 1,400 megawatt increase in wind power capacity throughout the United States during the first quarter of 2008.  Despite a weakening economy, large wind energy farms are currently being installed in Texas and Indiana, signaling the wind energy industry’s rapid geographic expansion.  Component manufacturers have also been expanding, raising the number of wind turbine components produced in the United States from 30% to 50% in the past couple years. 

A press release issued recently by the AWEA indicates that the wind energy industry’s growth may slow down if the federal production tax credit is not renewed next year.  Developers rely on the production tax credit as an incentive to install wind energy facilities, and may rush to complete projects this year if renewal seems unlikely.  Indeed, the wind energy industry has seen significant drops in installations in years following a lapse in the production tax credit (1999, 2001 and 2003).