The numbers are in and…it’s a bit of a mixed bag. Nationally, we saw a 15% increase in capacity since the beginning of 2010. That’s an increase of 5,115 megawatts and brings the country to 40,180 megawatts. Unfortunately, that’s 50% less growth than we saw in 2009.
Minnesota, National Wind’s home state, added 22% capacity, beating the national mark. The state added 400 megawatts in 2010. The added capacity brings Minnesota to 2,200 megawatts of wind energy and bumps it to #5 in the nation for total capacity.
Internationally, the big news is that China has supplanted the U.S. as the world leader in wind energy. China added 16,000 megawatts in 2010, more than three times that of the U.S., bringing its total to 41,800 megawatts. These numbers reflect tremendous growth–China’s wind energy capacity increased by 62% last year. The U.S. had led the world in most wind energy installed since 2008 when it overtook Germany for the top spot.
Elizabeth Salerno, AWEA Director of Industry Data & Analysis, argues that 2011 is likely to be a better year for U.S. wind than 2010. “Wind’s costs have dropped over the past two years, with power purchase agreements being signed in the range of 5 to 6 cents per kilowatt-hour recently,” Salerno said. “With uncertainty around natural gas and power prices as the economy recovers, wind’s long-term price stability is even more valued. We expect that utilities will move to lock in more wind contracts, given the cost-competitive nature of wind in today’s market.” That, combined with the fact that we’ve entered the year with 5,600 megawatts already under construction, suggests a brighter outlook.
Wind energy still faces challenges, however. Chief among these is the inconsistency of federal support. The Production Tax Credit is set to expire in 2012. The American Recovery and Reinvestment Act’s Treasury grant program, set to expire in 2010, received a last-minute extension through 2011. We still lack a national renewable portfolio standard. Congress continues to pass short-term measures and pass the football on the kind of long-term, consistent standards required to ensure clean energy will have a prominent place in our future. The uncertainty caused by this inconsistent support hurts investment and slows growth. The fact that China has overtaken us is evidence of this–they’ve shown leadership, so where’s ours?