US wind falls back to 2007 levels

Wind power installations in he US to date this year have dropped by 57 per cent and 71 per cent from 2008 and 2009 levels, respectively, according to the American Wind Energy Association (AWEA).

Around 700MW of wind energy capacity was added in the second quarter of 2010. US manufacturing investment has also fallen below 2008 and 2009 levels.

The US Government’s tendency to blow hot and cold over incentives like the renewable electricity standard (RES) is to blame, says the AWEA.

The AWEA was among a broad coalition of renewable energy, labour, utility, and environmental organisations which called on Congress earlier this week to reinstate a national RES to spur demand for renewable energy, attract manufacturing investment, and save and create jobs.

"The US wind industry is in distress,” said AWEA chief executive Denise Bode. “Strong federal policy supporting the US wind energy industry has never been more important We have an historic opportunity to build a major new manufacturing industry. Without … an RES to spur demand, investment, and jobs, manufacturing facilities will go idle and lay off workers."

The US is essentially in a race with the EU and China to lead the wind energy industry. Its competitors have the advantage of long-term renewable policy commitments in place, whereas in the US, policy yo-yos between incentivising wind and then removing the incentives. Consequently the industry follows see-sawing boom-and-bust cycles as investors chase rewards from incentives and then withdraw.

According to a national poll conducted by Public Opinion Strategies and Bennett, Petts & Normington, an RES is popular among American voters with strong support across party lines, with 65 per cent of Republican voters, 69 per cent of Independents and 92 per cent of Democrats favouring the legislation.

Nevertheless, last week, Senate leader Harry Reid, gave up on trying to include an RES in the Energy Bill after failing to garner enough votes - 60 per cent - to get it through. More recently, Republican senator Sam Brownback threw his support behind RES.

"We have 60 votes [in the Senate] for an RES amendment and will continue to push for its consideration in this bill,” said Bode. “Senator Brownback’s statements about the RES demonstrate the bipartisan support that exists for such an amendment.”