News from AWEA: More New Wind Installations Than Nuclear

["Tom Gray" <tomgray@igc.org>]

 

-----Original Message-----
From: Christine Real de Azua [mailto:christine@awea.org]
Sent: Thursday, May 10, 2001 2:59 PM
Subject: News from AWEA: More New Wind Installations Than Nuclear

A Word version of the release including a graph is 
attached.  Please email christine@awea.org if you have difficulty opening 
the attachment.

American Wind Energy Association
www.awea.org

FOR IMMEDIATE RELEASE:  

May 10, 
2001

CONTACT: 
Tom Gray (802) 649-2112
Christine Real 
de Azua (202) 383-2508

MORE NEW WIND GENERATING CAPACITY THAN NUCLEAR
INSTALLED WORLDWIDE FOR SECOND YEAR IN A ROW

Trade Group Predicts 2001 Will Follow Trend
As Global Wind Installations Rapidly Expand

Worldwide installations of wind energy 
generating capacity outstripped those of nuclear for the second year in a row in 
2000, an indication that wind is becoming a competitive player in todays power 
markets, the American Wind Energy Association (AWEA) said today.  The 
steady growth of investment in wind farms makes it clear that deployment of wind 
power can be part of the solution to Americas energy crisis, according to 
AWEA.  

Additions to wind energy capacity worldwide totaled 3,800 
megawatts (MW) in 2000, according to figures from the European Wind Energy 
Association (EWEA) and AWEA.   Some 3,056 MW of new nuclear capacity 
was installed in 2000, according to the International Atomic Energy Agencys 
(IAEA) Public Reactor Information System.  In 1999, additions to wind 
generating capacity totaled 3,600 MW and additions to nuclear, 2,700 
MW.   

The figures are in, and they demonstrate that wind 
power can play a rapidly increasing role in our nations energy portfolio and 
that of any nation with a good wind resource, said AWEA Executive Director 
Randall Swisher. One need only look at the current pace of investments in wind 
farms in the U.S. and at the industrys steady growth in several European 
countries, to see that this is one of the most promising power technologies in 
the market today.  The wind industry is expected to grow this year by 60% 
in the U.S., and 34% worldwide.  Globally, new wind turbines added this 
year will equal two large (1,000-MW) nuclear plants in electrical generation 
capability.

Because nuclear plants operate more steadily, a given amount 
of nuclear capacity will generate substantially more electricity than the same 
amount of wind capacity.  Even so, the fact that new wind capacity totals 
are beginning to surpass those of nuclear appears to signal a long-term trend, 
reflecting a combination of economic and environmental factors.  

The cost of wind energy has declined steadily to a range that is more 
than competitive today, at the most efficient wind farms, with that of power 
from nuclear plants.  Wind energys low risk and predictable cost (its fuel 
is free, not subject to fluctuations in price) are also attractive factors for 
power companies and utilities.  Nuclear power would in many cases not be 
economically viable without government insurance for catastrophic risk, such as 
that provided under the Price-Anderson Act in the U.S.  Concerns about 
investment risk, siting, processing of fuel, and storage of radioactive waste 
have also dampened the development of the nuclear power industry over the 
years.

Wind farms generate electricity without emissions of pollutants or 
of carbon dioxide, the leading gas associated with global warming.  Wind 
energy was recently singled out by the U.N. Intergovernmental Panel on Climate 
Change (IPCC) as a technology of choice to bring fresh power online without 
contributing to global warming.  


Global wind energy capacity 
figures are available from the Web at http://www.awea.org/faq/global2000.html . The IAEA report 
is located on the Web site at  http://www.iaea.org/programmes/a2/index.html.

* * *

The following is relevant background 
information about wind energy in the U.S. and the world.

Growth of the 
Wind Energy Industry

- Total worldwide wind capacity today is 
approximately 17,300 MW, enough to generate about 37 billion kilowatt-hours of 
electricity each year.  This is about the same amount of electricity as 5 
million average California households (containing 12.5 million people) 
use.

- Wind energy was the world's fastest-growing energy source during 
most of the 1990s, expanding at annual rates ranging from 25% to 35%.  In 
2000, about 3,800 MW of new wind capacity (a $4 billion investment) was 
installed around the world, but only 53 MW of that total, or a little more than 
1%, was installed in the U.S.  However, AWEA expects as much as 1,500 MW of 
new wind capacity to be installed in the U.S. this year.

- Leading states 
in terms of installed wind capacity today are California (1,646 MW), Minnesota 
(272 MW), Iowa (242 MW), and Texas (188 MW).

- U.S. wind potential is 
enormous--many times the amount installed.  California, for example, could 
conservatively install an estimated 5,000 MW of wind capacity.  Other 
western states have much larger potential--e.g., Wyoming has more than 10 times 
California's.  The U.S. is, quite literally, a "Saudi Arabia of wind," with 
vast resources throughout the Plains states.


Market Drivers Behind 
Wind Energy's Growth

(1) Federal government policy:  The federal 
government provides a tax credit of 1.5 cents per kWh (adjusted for inflation) 
for electricity generated by a wind plant during its first 10 years of 
operation.  This credit is intended to "level the playing field" for wind, 
which must compete with other energy industries that receive billions of dollars 
in federal subsidies each year.  The wind energy credit will expire at the 
end of this year unless it is extended by Congress.

(2) State government 
policy:  Several states, as part of electric utility restructuring 
legislation, have enacted policies to encourage clean energy sources like 
wind.  The state of Texas, for example, has passed a law requiring the 
construction of 2,000 MW of new renewable energy generation by the year 2009, of 
which wind is expected to capture a major share.  New wind projects of 160 
MW, 208 MW, and 82.5 MW have been announced in Texas within the past few 
months.

(3) Declining costs:  The cost of producing electricity from 
wind energy has declined by more than 80%, from about 38 cents per kilowatt-hour 
in the early 1980s to a current range of 3 to 6 cents/kWh (levelized over a 
plant's lifetime including the federal wind energy Production Tax Credit (PTC)). 
However, the cost of electricity from a wind plant varies based on its size and 
the average wind speed.  A large plant (50 MW and up) at an excellent site 
(20 mph average) can deliver power for 3-4 cents/kWh; electricity from a small 
plant (3 MW) at a moderate site (16 mph) may cost up to 8 cents/kWh.  In 
the not-too-distant future, analysts believe, wind energy costs could fall even 
lower.  

(4) The green power market:  As the electricity market 
becomes more competitive, utilities and other power suppliers are looking for 
ways to differentiate their products.  One of the best ways to do that is 
to offer "green power"--electricity from clean energy sources like wind--at a 
premium price.  Today, over 190 utilities nationwide are selling 
wind-generated electricity as part of green power programs, and consumer demand 
for green power (even though still very small) is beginning to result in the 
building of new wind power projects, including some in southern 
California.

Clean Energy Policy Options

(1) Renewables Portfolio 
Standard (RPS):  The RPS is a "minimum content requirement," which 
specifies that a certain minimum percentage of electric power must be generated 
from renewable energy sources (wind, solar, and others).  Typically, RPS 
legislation provides that the minimum percentage increase gradually over time to 
encourage the sustained, orderly development of the renewable energy 
industries.   Several states, including Texas, have enacted RPS laws, 
and the concept is also being considered by the U.S. Congress.  More 
information on the RPS is available from http://www.awea.org/policy/index.html#RPS .

(2) 
Production Tax Credit (PTC):  The U.S. government currently provides a tax 
credit of 1.5 cents per kilowatt-hour (adjusted for inflation) for all the 
electricity generated by a new wind plant during its first 10 years of 
operation.  Under current law, the credit is scheduled to expire at the end 
of 2001.  The American Wind Energy Association (AWEA) is seeking its 
extension for at least five years.  More information on the PTC is 
available from http://www.awea.org/policy/index.html#PTC.

(3) 
Incentives for Small Wind Turbines:  Tax incentives or rebates help make 
the purchase of a small wind turbine for household use more attractive to 
potential buyers.  California currently provides a rebate of up to 50% of 
the purchase price of a small turbine, and that has helped to sharply increase 
demand for the units in the state.

(4) Research and Development:  
The U.S. Department of Energys wind energy research and development (R&D) 
program has worked closely with wind energy companies in recent years to improve 
wind technology and pursue innovative approaches to reducing costs.  
Funding for the R&D program should be continued and, if possible, 
expanded.

(5) Disclosure of Energy Sources:  AWEA also supports 
"disclosure" laws, which require sellers of electricity to inform customers of 
the sources of energy (coal, nuclear, natural gas, etc.) that are used to 
generate the electricity.  Such information is important for consumers to 
be able to make intelligent choices in a competitive marketplace.

(6) 
Fair Transmission Policy:  The nation's electricity transmission system 
operates based on rules that were designed to fit the characteristics of fossil 
fueled power plants.  Congress should take appropriate steps (including 
guidance to the Federal Energy Regulatory Commission and the emerging Regional 
Transmission Organizations) to ensure that wind energy is not disadvantaged in 
the market simply because it is an intermittent power 
source.



Benefits of Wind Energy Development

Wind energy 
provides both environmental and economic benefits.  

Windy counties 
profit from wind development through:

(1) Tax Payments: Every 100 MW of 
wind development generates about $1 million in property tax revenue.  
Development of another 1,500 MW of wind this year will mean $15 million annually 
in tax revenues to rural communities.

(2) Jobs:  Every 100 MW of 
wind development creates about 500 job-years of employment.  Installation 
of 1,500 MW will result in 7,500 job-years.

(3) Payments to landowners: 
The development of 1,500 MW in the U.S. will mean annual payments of 
approximately $3 million to farm and ranch landowners.

(4) Stable 
electricity prices: A recent study (January, 2000) found Iowa's electric utility 
customers could save over $300 million over a 25-year period if a proposal to 
meet 10% of the state's electric demand through wind energy is adopted.  
The savings result because the cost of fossil fuels is expected to rise over 
time, while wind's costs decline.  Savings in California, where prices have 
skyrocketed because of supply constraints, would be enormous.

(5) Reduced 
emissions of pollution and greenhouse gases: A single 660-kW wind turbine will 
displace emissions of 1,100 tons of carbon dioxide (the leading greenhouse gas), 
6 tons of sulfur dioxide (the leading component of acid rain), and 4 tons of 
nitrogen oxides (the leading component of smog) every year, based on the U.S. 
average utility fuel mix.  375 acres (more than half a square mile) of 
forest would be needed to absorb the same amount of CO2.

# # #

        

AWEA, 
formed in 1974, is the national trade association of the U.S. wind energy 
industry.  The associations membership includes turbine manufacturers, 
wind project developers, utilities, academicians, and interested 
individuals.  More information on wind energy is available at the AWEA web 
site:  www.awea.org

Christine Real de Azua
Communications Coordinator
American Wind Energy Association
122 C Street NW
Washington D.C. 20001
main (202) 383-2500
direct (202) 383-2508
fax (202) 383-2505
email: christine@awea.org
website: www.awea.org

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More New Wind than Nuclear - May 2001.doc