U.S. wind industry continues expansion of clean domestic energy source

The U.S. wind energy industry turned in a solid performance in 2004, adding 389 megawatts of new generating equipment to the nationwide fleet, or enough to serve more than 100,000 average homes, according to the Washington, D.C.-based American Wind Energy Association (AWEA). Total new additions were down sharply from the highs in the boom years of 2001 (1,696 megawatt) and 2003 (1,687 megawatt). At year's end, the trade group said, utility-scale wind installations in 30 states across the country totalled 6,740 megawatt, enough to serve more than 1.6 million households.

The small but burgeoning industry is hard at work planning projects that should make 2005 a record year in terms of new wind generating capability in the U.S. According to AWEA, over 2,000 megawatt of new wind power capacity is likely to be added during the coming year, or enough to power more than 540,000 homes. The most recent extension of the federal wind energy production tax credit (PTC) by Congress in October, 2004, teed up 2005 for an impressive growth spurt, which will bring economic development activity in rural areas, more diversity to the nation's generating mix to reduce fuel price volatility, and clear environmental benefits to a nation that continues to demand new electricity sources.

AWEA executive director Randall Swisher said the association will continue to push for a multi-year extension of the existing PTC. Under current law, the credit will expire at the end of 2005, which could becalm the industry yet again. “The short-term duration of the federal production tax credit (PTC) and its repeated expirations – three in the past six years – are keeping this industry from reaching its potential to supply the nation with clean, domestic electricity,“ he said.