Survey Of Energy Resources
WIND ENERGY


UNITED STATES OF AMERICA

The development of the wind sector in the USA has, since the early 1980’s, reflected the wind-related Federal legislation in place at the time. Federal tax credits in favour of wind energy assisted the development, and the expiry of such credits dampened the incentive to construct capacity.

The Energy Policy Act of 1992 (EPACT) established production tax credits (PTC) for projects brought on line between 1994 and 1999, and there was a consequent growth in the market in 1999 prior to the cessation of PTC. As at end-1999, total capacity stood at 2 251 MW, installed in half of the 50 States. The wind capacity installed in California, Minnesota, Iowa and Texas constituted over 90% of total US capacity. Energy production from all wind systems during 1999 is estimated to have been in the order of 4.5 TWh but wind energy currently supplies only a minute percentage of the national electricity supply.

At the end of November 2000, the American House and Senate granted an extension of the PTC for 30 months to end-2001 (effective retroactively from end-June 1999). This will induce the further development of wind power in the short term: some 2 400 MW of additional capacity is planned. Aided by the state’s restructured electricity legislation (allowing for a ten-year tax credit of 1.5 cents per kWh, adjusted for inflation for plants completed before end-2001), 731 MW of capacity is planned for Texas. By end-2001 it is expected that Texas will become the state with the second-largest installed wind energy generating capacity. However, it is the Great Plains states that hold the greatest potential for wind power: a 1991 Pacific Northwest Laboratory assessment of US wind potential gave North Dakota, Texas, Kansas, South Dakota, Montana, Nebraska, Wyoming, Colorado and New Mexico 82% of the approximately 1.1 million MW total US potential.

Under the aegis of its Wind Program, the US Department of Energy (DOE) has put in place a Wind Powering America initiative. The role of the DOE is to assist with all developmental aspects of wind energy, especially helping to move the technology from the industry to the market place. The Wind Powering America initiative states that the following targets should be achieved:

  • wind to provide at least 5% of US electricity by 2020;
  • 5 000 MW on line by 2005, 10 000 MW by 2010 and 80 000 MW by 2020;
  • double the number of states with more than 20 MW installed (from eight to 16) by 2005, and increase to 24 by 2010;
  • provide 5% of electricity used by the federal government (the largest single consumer of electricity in the US) by 2010 (1 000 MW).

COUNTRY NOTES (WIND ENERGY)

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