This year's US wind energy development will benefit from the tax credit policy

After undergoing a large-scale decline in the number of projects in 2010, the US wind power industry may resume strong growth this year.

The American Wind Energy Association (AWEA) annual report shows that there were more than 5.6 million kilowatts of wind power projects under construction in the United States in early 2011.

Although the US wind power industry increased by 15% in 2010, its share in the country’s energy mix declined due to “unpredictable policies”.

The installed capacity of wind power in the United States increased from 35.6 million kilowatts in 2009 to 40.18 million kilowatts in 2010, enough to provide electricity for more than 10 million households. Despite this, the newly added wind capacity in 2010 was only 5.116 million kilowatts, which was only half of 2009.

In 2010, new installed capacity of wind power accounted for 26% of all new installed capacity in the United States, which was lower than 39% in 2009 and 40% in 2008.

The installed capacity of wind power in the United States lags behind China. In 2010, the installed capacity of wind power in China reached 41.8 million kilowatts, an increase of 62% year-on-year.

Policy reasons The wind power industry attributed the drop in new installed capacity to policy makers.

Over the years, wind power and natural gas have been on a par with new installed capacity indicators, but wind power fell behind in 2010. This is largely due to unstable and short-term policies.

AWEA expects that the US will add 5.6 million kilowatts of wind power installed capacity in 2011, which will be mainly driven by the state finance, and 30% of the cost of wind power projects under construction will be repaid to developers.

AWEA chief executive Denise Bode said that the extension of tax credit 1603 provides investors with a signal that wind power will continue to grow in the United States.

A good start was made in 2011. The newly installed capacity of wind power may reach 2010 figures in advance. Although the development of the wind power industry in 2010 was difficult, 14 manufacturing plants were newly built, which is comparable to that of 2009.

Ms. Bode said that in general, the wind power industry can still achieve the goal of providing 20% ​​of U.S. electricity by 2030.

The policy issue AWEA stated that the national financial plan ensures that the newly installed capacity of wind power in 2009 will exceed 10 million kilowatts, otherwise it will only increase 4 million kilowatts.

The price of wind turbines fell by nearly 15% in 2010. The cost of wind power has been declining in the past two years. The latest electricity purchase agreement price is 5-6 cents/kWh.

However, with the imminent deadline for the tax credit policy of 1603 and the uncertainty of alternative solutions, analysts believe that the wind power industry and even other renewable energy industries will encounter difficulties in sustaining growth.

Ms. Bode said that the US wind power industry is still developing, although it is also competing with the energy industry with permanent government subsidies. Since 2007, the newly installed capacity of wind power accounts for 35% of the newly installed capacity of all power sources, which is twice the combined installed capacity of coal and nuclear power.

Wind power is second only to natural gas power generation in terms of newly installed capacity. In 2010, new installed capacity of natural gas power generation accounted for 40% of the newly installed capacity of all power sources.