U.S. Wind Installations Dip in Second Quarter

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Reported by Staff

A trade group reported on Monday that the U.S. wind industry installed 1,210 megawatts of new generating capacity in the second quarter of 2009, a drop from the nearly 2,800 megawatts installed in the first three months and an indication that the global economic recession seems to be slowing the industry’s growth.

The American Wind Energy Association issued its second-quarter report, saying that the U.S. wind industry installed 1,210 megawatts of new generating capacity from April through June, bringing the total capacity added this year to slightly than 4,000 megawatts. That total is significantly higher than the 2,900 megawatts installed in the first half of 2008.

However, what is troubling is that the installed capacity is a significant decrease from the installations made in the first quarter of 2009, and the industry’s future course remains unclear without a federal renewable-electricity standard, according to the AWEA.

“The first-half numbers seem solid from last year,” said Liz Salerno, director of data and analysis at AWEA. “The story is, the wind industry is holding its own in the economic recession. It’s still putting projects in ground; it’s still growing.”

Salerno added that there are indications of “a cloudier future. The megawatt numbers are solid, but if you look behind that, there’s uncertainty.”

The trade group reports that the installed capacity is on track with the industry’s goal of producing 20 percent of the nation’s electricity from wind by 2030.  But lately, manufacturing announcements and equipment orders have slowed, making firm projections for future installations a bit trickier to forecast.

Salerno noted that most of the uncertainty centers on the lack of a strong federal renewable electricity standard that would spur long-term investment.

AWEA CEO Denise Bode said in a statement: “Our challenge now is to seize the historic opportunity before us to unleash this entrepreneurial force and build up an entire new industry here in the U.S. that will create jobs, avoid carbon and strengthen our energy security. To achieve that, Congress and the administration must pass a national renewable electricity standard with strong early targets.”

The U.S. wind industry has 5,000 megawatts of capacity under construction, but not all of those projects will be completed this year, Salerno said. That figure is less than the 5,600 megawatts installed in the second half of 2008. “The question is whether the industry will stay ahead of the curve or fall below it,” she added.

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