The U.S. wind industry grew 8% in 2014 to reach a cumulative installed capacity of 65.9 GW, thanks to the 2013 extension of the $0.023 per kWh production tax credit (PTC) vital to its growth, according to the 2014 Wind Technologies Market Report from the Department of Energy (DOE) and Lawrence Berkeley National Laboratory (LBNL). The prices offered by wind projects to utility purchasers averaged under 2.5¢/kWh for projects negotiating contracts in 2014, spurring demand for wind energy.
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“Wind energy prices, particularly in the central United States, have hit new lows, with utilities selecting wind as the low cost option”, Berkeley Lab senior scientist Ryan Wiser said.
Both of these trends increase the amount of electricity that can be generated from a given wind turbine, since there is more energy to be captured higher in the air (due to higher wind speeds), and since bigger rotors can also generate “more power at lower wind speeds”, as Energy explains.
Wind output met 4.9% of an average year’s U.S. electricity demand in 2014.
In nine US states wind makes up 12% of total electricity generation, in three of those comprising over 20% of generation.
U.S. Energy Secretary Ernest Moniz said in a statement the government’s findings show wind power is emerging as a major component of the nation’s energy mix. In total, 63.6 MW of new distributed wind capacity was added in 2014, representing almost 1,700 units and $170 million in investment across 24 states. Ultimately, wind turbines with hub heights as high as 140 meters could open up the possibility of wind energy in across the 50 United States, DOE has previously reported. Compared with traditional, centralized power plants, distributed wind energy installations supply power directly to the local grid near homes, farms, businesses, and communities.
In the meantime, wind now provides 73,000 jobs, the new report finds. Moreover, the profitability of turbine suppliers has generally rebounded over the last two years, after a number of years in decline. “With an uncertain domestic market after 2016, some manufacturers have been hesitant to commit additional long-term resources to the US market”.
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According to two reports released today by the Energy Department, the US wind energy industry continued growing at an impressive rate in 2014, further reinforcing America’s position as a global leader in wind energy.
