US: World leader sets new low price record – Wind power more affordable than ever

The US Department of Energy has presented two new reports earlier this week: Accordingly, the United States were able to expand the position as world leader in wind energy over the past year. In no other country in the world as many turbines have been constructed and connected to the grid as in the United States. And wind energy is an important factor in carbon reduction in President Barack Obama's 'Clean Power Plan' to tackle climate change.

According to the published studies, the proportion of the installed turbines in the US has risen by 8% to 66 Gigawatt (GW) in the last year. The reasons are especially efficient new turbine types: Larger rotors which are better adapted to low wind speeds, but provide for a higher yield. Wind power accounts for 33% of all new capacity additions since 2007. Last year $8.3 billion were invested in wind energy projects with a capacity of 4.9 GW.

As figures from the International Energy Agency show, the US are following a trend: Solar and wind energy grew tremendously during the last years:

Source: IEA

The share of wind power in the electricity mix of the country has risen to 4.9%. For comparison: According to the Federal Association of Energy and Water Industries (BDEW), the proportion of onshore wind energy in Germany in 2014 was 8.4% (51.2 billion kWh), while the German Wind Energy Association (BWE) expects 42 GW of installed onshore capacity by the end of 2015.

Source: AEE

These figures clearly show the positive influence of wind energy on the industrial base of the US: 73,000 people have been employed in the wind energy sector last year which corresponds to an increase of 22,500 jobs since 2013. With a further increase of wind energy's share of the American energy mix to 20% in the coming years, it is possible for up to 380,000 people to find employment in wind industry, as the Ministry estimates. In addition, a ripple effect on other industries in the country is expected through the development of supply chains.

Even end users will notice these effects soon: In many regions, especially in the middle of the country, the price for wind power has fallen by up to two thirds in the past six years: According to The Hill, utilities had to pay an average price of 2,35 Cent per kilowatt hour for electricity last year. In many places this was less than the price for electricity from fossil fuels.

"With declining costs and continued technological development, these reports demonstrate that wind power is a reliable source of clean, renewable energy for American homes and businesses," said Energy Secretary Ernest Moniz. "Through continued investments and the help of stable policies, we’re confident that wind power will keep playing a major role in creating jobs and shaping America’s clean energy future."

The American Wind Energy Association AWEA welcomed the reports, but also pointed out the importance of political stability: "While this report is good news, extending the Production Tax Credit and Investment Tax Credit remains critical for keeping Americans at work, reducing the cost of wind energy and continuing to scale up this homegrown resource through the end of this decade," said Tom Kiernan, CEO of the AWEA. "Wind energy is increasingly cost-competitive in several parts of the U.S., but we need stable, predictable policy to continue bringing this consumer benefit to every corner of the country. Policy stability will keep this American economic success story going."