US breaks wind energy record during 2009

The US retained its pole position in the global race for wind power supremacy last year, achieving a record number of wind turbine installations, according to new figures from the American Wind Energy Association (AWEA).

The trade association released its annual report yesterday, revealing that a record-breaking 5,700 turbines were installed during 2009 providing 10,000MW of new capacity.

Last year's installations bring the total capacity in the US to 35,000MW, ensuring the US retains the top spot in the global wind power league table, ahead of China and Germany, which each had around 25.8 MW of capacity.

But wind industry representatives admitted that financial intervention from the US government in the form of access to stimulus funds had helped the industry ride the economic storm after the financial crisis caused banks to halt lending to struggling turbine makers.

US turbine makers including Vestas Wind Systems A/S Suzlon were forced to lay off staff in the first half of 2009 as orders slumped, but activity quickly rebounded after the federal government set rules that allowed companies to use US stimulus funds to support the industry.

"It was a critical part of the success in 2009," Don Furman, senior vice president for development at wind energy company Iberdrola Renewables, told Reuters. Iberdrola is the second-largest wind farm owner in the country behind FPL Group's NextEra Energy Resources.

The federal funds were issued through a grant system that replaced a tax credit programme, allowing developers who had already built projects to be reimbursed for 30 per cent of their construction costs.

The North American wind industry has enjoyed 39 per cent year-on-year growth over the past five years, and today employs 85,000 people, according to AWEA figures. But despite steady growth, wind power still generates only 1.8 per cent of the US’s total, up from 1.3 per cent at the end of 2008. AWEA predicts that figure will pass the 2 per cent mark this year.

But there’s no scope for sitting on its laurels as China is catching up quickly and was the largest new wind market in 2009, according to the Global Wind Energy Council. Official statistics released yesterday to the state-backed Chinese news agency Xinhua said low carbon energy sources will account for over a quarter of China's electricity supply by the end of 2010.

Meanwhile, development of offshore wind farms is set to outstrip production of land-based wind turbines over the next five years, says a new market report from research firm SBI Energy.

It cites government cash and tax incentives that promote renewable energy development, along with ongoing improvement in the quality of offshore wind products for driving demand, particularly in Europe and the US.

SBI’s analysis projects that total offshore installed capacity will grow at an astounding 92 per cent compound annual growth rate during the next five years to reach more than 79,700MW.