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AWEA Reports on 2008 Wind Energy Growth (posted 2/2/09)

February 2, 2009
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The U.S. wind energy industry shattered all previous records in 2008 by installing 8358 megawatts (MW) of new generating capacity, the American Wind Energy Association (AWEA) recently reported, even as it warned of an uncertain outlook for 2009 due to the continuing financial crisis. The growth in 2008 increased the nation’s total wind power generating capacity by 50% and channeled an investment of some $17 billion into the economy, positioning wind power as one of the leading sources of new power generation in the country today, along with natural gas. At year’s end, however, financing for new projects and orders for turbine components slowed to a trickle, and layoffs began to hit the wind turbine manufacturing sector.

“Our numbers are both exciting and sobering,” said Denise Bode, AWEA chief executive officer. “The U.S. wind energy industry’s performance in 2008 confirms that wind is an economic and job creation dynamo, ready to deliver on the President’s call to double renewable energy production in three years. At the same time, it is clear that the economic and financial downturn have begun to take a serious toll on new wind development. We are already seeing layoffs in the area where wind’s promise is greatest for our economy: the wind power manufacturing sector. Quick action in the stimulus bill is vital to restore the industry’s momentum and create jobs as we help make our country more secure and leave a more stable climate for our children.”

The new wind projects completed in 2008 account for about 42% of the entire new power-producing capacity added nationally last year, according to initial estimates, and will avoid nearly 44 million tons of carbon emissions, the equivalent of taking over seven million cars off of the road.

The amount that the industry brought online in the fourth quarter alone (4112 MW) exceeds annual additions for every year except 2007. In all, wind energy generating capacity in the U.S. now stands at 25,170 MW, producing enough electricity to power the equivalent of close to seven million households and strengthening our national energy supply with a clean, inexhaustible, homegrown source of energy.

Iowa, with 2790 MW installed, surpassed California (2517 MW) in wind power generating capacity. The top five states in terms of capacity installed are now Texas, with 7116 MW; Iowa, with 2790 MW; California, with 2517 MW; Minnesota, with 1752 MW; and Washington, with 1375 MW. Oregon moved into the club of states with more than 1000 MW installed.

About 85,000 people are employed in the wind industry today, up from 50,000 a year ago, and they hold jobs in areas as varied as turbine component manufacturing, construction and installation of wind turbines, wind turbine operations and maintenance, and legal and marketing services. About 8000 of these jobs are construction jobs, and a significant number of those will be lost in 2009 if financing for the pipeline of new projects is not quickly restored.

Wind power’s recent growth has also accelerated job creation in manufacturing, where the share of domestically manufactured wind turbine components has grown from under 30% in 2005 to about 50% in 2008. Wind turbine and turbine component manufacturers announced, added or expanded 70 new facilities in the past two years, including over 55 in 2008 alone. Those new manufacturing facilities created 13,000 new direct jobs in 2008. However, because of the recent slowdown in orders, wind turbine and turbine component manufacturers in different parts of the country are beginning to announce layoffs.

State-by-state installation information is available at www.awea.org/projects.

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