American wind capacity to hit 150GW by 2020

The US accounted for over a quarter of all the new wind energy capacity added globally last year and could deliver over 150GW of wind power by 2020, according to a new report from analyst firm Emerging Energy Research (EER).

The 310 page report claims that while challenges persist, the US wind industry is "poised for a record breaking surge" that should see the country cement its position as the world's leading provider of wind power.

Research earlier this month from the American Wind Energy Association, claimed that while the US lags behind Germany in terms of installed capacity, boasting 19,549MW compared to Germany's 23,000MW, higher wind speeds mean it is generating more power.

However, according to the EER report Germany's lead in terms of capacity is unlikely to last much longer with the US adding 5,329MW of new capacity in 2007, representing 27 per cent of all new capacity installed globally last year, and poised to add a further 8GW before the end of this year.

EER research director Joshua Magee said that the burgeoning economies of scale enjoyed by the sector meant wind is fast closing the cost gap on conventional fossil fuel-based power. "Given the substantial volatility of fossil fuel capital and operating costs in the past several years, wind is now one of the least-cost power generation options available to US utilities seeking new capacity," he said.

The report noted that maintaining the rate of expansion would require both the continuation of renewable tax credits that are due to lapse at the end of the year and a major expansion of transmission networks.

But it also argued that there were plenty of reasons for optimism across the sector, particularly given the rapid speed with which concerns over wind turbine supplies have been addressed through the emergence of a turbine "manufacturing corridor" spanning from North Dakota to Texas and from eastern Colorado to Illinois. EER predicted that these emerging manufacturers are likely to be rewarded as sales of wind turbines climb from an estimated $12bn in 2008 to almost $16bn by 2015.