WASHINGTON DC – Wind energy installed more electric generating capacity last year than any other energy source in America, contends a report by The American Wind Energy Association.
“These impressive results drive home the point that Wind is a cost-effective solution that makes business sense,” said Chris Brown, President of Vestas, Americas. “More than 500 wind industry factories in 43 states are turning out taller turbines, longer blades, and other components that captures more energy, helping further drive down our costs and opening up new parts of the country for utility-scale wind farms,”
The 8.6 gigawatts (GW) of wind power capacity installed surpassed the 7.3 GW of new solar photovoltaic capacity and 6 GW installed by natural gas, AWEA reported in the Business Council for Sustainable Energy (BCSE) and Bloomberg New Energy and Finance (BNEF) 2016 Factbook. Wind accounted for more than 35 percent of new generating capacity, while all renewable resources together provided 68 percent of the new capacity, according to the Factbook.
“Wind’s growth is being propelled by cost reductions of two-thirds over the last six years, which now makes wind the lowest-cost source of new generation,” said AWEA CEO Tom Kiernan.
“It’s one of the biggest, fastest, cheapest ways we can reduce U.S. carbon emissions, and the low-cost solution for power sector reductions,” Kierman said. “Utilities and other purchasers are turning to wind energy also because it provides stably-priced energy with no fuel price risk, and protects consumers by creating a more diverse energy portfolio.”
After a strong finish last year, wind energy is off to a good start in 2016, with an additional 9.4 GW under construction, an additional 4.9 GW in advanced stages of development, and a predictable federal Production Tax Credit for the next several years.
“With long-term policy certainty in place, wind power is ready to keep this American success story going,” said Mike Garland, CEO of Pattern Energy and current AWEA Board Chair. “Further investments in our technology will enable utilities to cut costs and pass on the savings to American homeowners and businesses.”
While the U.S. Supreme Court recently put a temporary stay on certification of state plans under the federal Clean Power Plan, states and utilities continue to work to develop solutions to reduce carbon pollution from fossil power plants. Many utilities have already indicated that the stay will not affect their planned generation changes; many recognize carbon reductions are inevitable, and the Supreme Court has already affirmed in multiple rulings that EPA has the authority and obligation to regulate greenhouse gas emissions.
“While the Supreme Court’s ruling is a significant development in this case, the merits of the case have not been decided and the legal proceedings will continue,” Xcel Energy said in a recent statement, as quoted by E&E News. Xcel Energy recently said it plans $6 billion in new wind and solar energy investment. “Xcel’s analysis of the strategy, which speeds up wind and solar investment in this decade, shows it to be a cost-effective way to reduce greenhouse gas emissions by 60 percent by 2030 — likely beyond Minnesota’s requirements under the Clean Power Plan,” according to Laura McCarten, Regional Vice President for Xcel.
After the stay, Xcel said it would continue to work with states and stakeholders on plans “to create sustainable and affordable energy futures…This approach will not only ensure compliance with existing and new regulations, but also take advantage of new technologies, recognize evolving customer needs and continue to drive improvements in how we produce and deliver energy.” Grid operators like PJM have also indicated they plan to proceed with planning to accommodate the Clean Power Plan, as have many states.
With wind energy costs at an all-time low and the recent extension of key federal tax incentives for wind and solar, new analysis using a Department of Energy modeling tool concludes, “The tax extenders allow states to meet pending carbon dioxide regulations almost exclusively with zero-emitting renewables.”
Zero-emission wind energy also provides states and utilities with more flexible options for reducing pollution, relative to energy sources with some emissions which would require the replacement of far more existing generation to achieve the same level of emissions cuts.
The rapid growth of renewables and the continued retirement of coal plants have not significantly impacted retail prices, according to BCSE and BNEF’s 2016 Factbook. The report states “retail electricity rates across the country remain 5.8 percent below the recent peak (2008).”
Innovations by the wind industry have helped lower wind power’s costs by two-thirds in the last six years, as shown by the Lawrence Berkeley National Laboratory. The Wall Street investment firm Lazard also found a cost decline of more than 60 percent, and notes that wind energy is the lowest-cost energy source for reducing emissions, even before tax incentives.
