As I mentioned in a mid-August blog, the American Wind Energy Association (AWEA) projects capacity growth in 2008 to surpass the dramatic record set in 2007. It’s nice to see AWEA’s third quarter report released today reaffirm this prediction even after September’s financial collapse.
AWEA reports 1.4 GW installed throughout the US during the third quarter, making the year-to-date additions sum to 4.2 GW so far. They see at least 3 GW more installations by the end of the year, smashing the 2007 record of 5.25 GW and registering close to last year’s 45% cumulative growth. With total capacity at ~21 GW on October 1, the US is poised to pass Germany (~23 GW) in capacity installed by the year’s end. The report admitted that 2009 growth will probably not be as quick due to the late renewal of the federal Production Tax Credit and the more difficult financial environment. But with 8.4 GW currently under construction, I would guess that growth next year will at least be similar to 2007’s 5+ GW growth.
The report also emphasized wind power’s crucial role in our nation’s economic recovery. It highlighted the many thousands of new jobs created by the growing industry, especially as our manufacturing has ramped up due to 50% of wind turbine components being built in the US this year versus a much lower 30% in 2005. Texas continued to dominate the wind market with almost half of third quarter installations to put their capacity at ~6.3 GW. This growth earned the state a top five position in world ranking among countries! Other notable developments include sizable additions to North Dakota’s grid so that wind power can provide ~15% of the state’s electricity needs. Finally, this top state in terms of potential is reaping benefits from its renewable resource and has become the top state by percentage of its energy demand.
In oil news, the EIA weekly oil report showed a continued return to average inventory levels thanks to lower demand. Crude levels are now slightly high in the average range though ~2% below last year. And while gasoline and distillates/diesel are low compared to the five-year average — demand remains 3.3% and 7% lower than last year for gasoline and distillates, respectively. With continued low demand in the weeks ahead, we will probably see gas at the pump fall lower than last year unless OPEC decides to enforce a large cut in production of 1.5 Mbd or more.
In sum, wind power is providing electricity for a growing number of Americans, improving our energy security, lowering the price of the fossil fuels it substitutes, and providing jobs to spur economic growth. While we are getting a nice respite from inflationary oil price hikes of this past summer, I hope we keep our focus on continued progress for wind power and other renewables to keep reaping their many benefits.
Tags: Oil, record growth, wind power