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Wind Power Today, 2010, Wind and Water Power Program

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Wind Power Today, 2010, Wind and Water Power Program WIND AND WATER POWER PROGRAM Wind Power Today 2010 •• BUILDING•A•CLEAN• ENERGY •ECONOMY •• ADVANCING•WIND• TURBINE •TECHNOLOGY •• SUPPORTING•SYSTEMS•• INTERCONNECTION •• GROWING•A•LARGER• MARKET 2 WIND AND WATER POWER PROGRAM BUILDING•A•CLEAN•ENERGY•ECONOMY The mission of the U.S. Department of Energy Wind Program is to focus the passion, ingenuity, and diversity of the nation to enable rapid expansion of clean, affordable, reliable, domestic wind power to promote national security, economic vitality, and environmental quality. Built in 2009, the 63-megawatt Dry Lake Wind Power Project is Arizona’s first utility-scale wind power project. Building•a•Green•Economy• In 2009, more wind generation capacity was installed in the United States than in any previous year despite difficult economic conditions. The rapid expansion of the wind industry underscores the potential for wind energy to supply 20% of the nation’s electricity by the year 2030 as envisioned in the 2008 Department of Energy (DOE) report 20% Wind Energy by 2030: Increasing Wind Energy’s Contribution to U.S. Electricity Supply. Funding provided by DOE, the American Recovery and Reinvestment Act CONTENTS of 2009 (Recovery Act), and state and local initiatives have all contributed to the wind industry’s growth and are moving the BUILDING•A•CLEAN•ENERGY•ECONOMY• ........................2 nation toward achieving its energy goals. ADVANCING•LARGE•WIND•TURBINE•TECHNOLOGY• .....7 Wind energy is poised to make a major contribution to the President’s goal of doubling our nation’s electricity generation SMALL •AND•MID-SIZED•TURBINE•DEVELOPMENT• ...... 15 capacity from clean, renewable sources by 2012. The DOE Office of Energy Efficiency and Renewable Energy invests in clean SUPPORTING•GRID•INTERCONNECTION• ..................... 17 energy technologies that strengthen the economy, protect the GROWING•A•LARGER•MARKET• ....................................23 environment, and reduce dependence on foreign oil. Within that office, the Wind and Water Power Program manages the public’s ENSURING•LONG-TERM•INDUSTRY•GROWTH• .............. 31 investment in wind power technology to improve the performance, lower the cost, and accelerate the deployment of wind power. WIND POWER TODAY WIND AND WATER POWER PROGRAM 3 Another •Record•Year•for•Wind 20% Wind Scenario 300 305 GW In 2009, the U.S. wind industry installed 10,010 megawatts Capacity needed by 2010 to meet 20% scenario by 2030 = 26 GW (MW) of generating capacity, breaking U.S. installation records 250 Cumulative installed Capacity as for the third year in a row. Wind power represented 39% of all U.S. of December 2009 = 35 GW electric generation capacity additions for the year. According to 200 the American Wind Energy Association, the wind capacity added 150 in 2009 generates enough electricity to power the equivalent of O­shore 2009 = 0 Land-based 2009 = 35 GW 2.4 million homes—the generation capacity of three large nuclear 100 power plants. The entire wind turbine fleet in place at year’s end— 50 more than 35,000 MW—was enough to power the equivalent (GW) Capacity Installed Cumulative 2009 = 35 GW of nearly ten million homes. This wind power capacity will avoid 0 an estimated 62 million tons of carbon dioxide (CO2) emissions 2000 2006 2012 2018 2024 2030 annually, equivalent to taking 10.5 million cars off the road, and will This 20% wind scenario graph shows how the total capacity installed conserve about 20 billion gallons of water each year that would by the end of 2009 compares to the capacity needed by 2010 to meet 20% wind by 2030 (1 GW=1,000 MW). otherwise be withdrawn for steam or cooling in conventional power plants. economic activity, and reduce water use. Generating 20% of the nation’s electricity from wind would require increasing the nation’s The renewable energy industry creates thousands of long- wind generating capacity from today’s 35 gigawatts (GW) to term, high-technology careers in wind turbine component 300 GW of capacity over the next twenty years. manufacturing, construction and installation, maintenance and operations, legal and marketing services, transportation and The report found that achieving 20% wind energy by 2030 logistical services and more. In 2009, the wind sector invested would provide significant economic and environmental benefits, $17 billion in the U.S. economy and employed 85,000 workers. including: A modern wind turbine has more than 8,000 component parts. • Roughly 500,000 jobs in the United States with an annual To supply this market, 39 manufacturing facilities were brought average of more than 150,000 workers directly employed by online, announced, or expanded in 2009, bringing the total the wind industry; number of wind turbine component manufacturing facilities now operating in the United States to more than 200. • More than 100,000 jobs in associated industries (e.g., steel workers, electrical manufacturing, accountants, and lawyers); Over half of the wind power generating capacity added in 2009 was installed in Texas, Indiana, and Iowa. Texas is home to • More than 200,000 jobs through economic expansion based the Roscoe Wind Plant, the world’s largest wind generation plant. on local spending; After a construction period of just over two years, Roscoe has • An increase in annual property tax revenues to more than 627 wind turbines with an installed capacity of 780 MW that can $1.5 billion by 2030; generate electricity for more than 230,000 homes. Thirty-six states • An increase in annual payments to rural landowners of more now have commercial wind energy systems installed. Arizona than $600 million in 2030; inaugurated its first large-scale wind plant, the 64-MW Dry Lake Wind Power Project, in 2009. • Avoidance of approximately 825 million metric tons of CO2 emissions in the electric sector; The market for small wind turbines (rated capacity of less than 100 kilowatts) grew by 15% in 2009, adding 20 MW of generating • A reduction in water consumption by 4 trillion gallons in the capacity to the nation. Seven small wind turbine manufacturing electric sector. facilities were opened, announced or expanded in 2009. The report also identified major challenges along the path to A •National•Strategy a 20% wind scenario. The nation’s institutions need to: • Invest in the nation’s transmission system so that the electricity The DOE Wind Program leads the federal government’s efforts generated by wind power can be delivered to urban centers that to expand domestic wind energy capacity. According to the need the increased supply; 20% Wind Energy by 2030 report, supplying 20% of our nation’s electrical demand with wind energy by 2030 is technically feasible • Develop larger electric load balancing areas, in tandem with and would reduce greenhouse gas emissions, create jobs, stimulate better regional planning, so that regions can depend on a diversity of generation sources including wind power; WIND POWER TODAY 4 WIND AND WATER POWER PROGRAM • Grow the manufacturing supply chain to remedy the current Recovery•Act•Helps•Wind shortage in wind turbines and components and provide jobs; Investments in wind energy from the American Reinvestment • Continue to reduce the capital cost and improve the and Recovery Act (Recovery Act) began to bear fruit in 2009 and performance of wind turbines through technology advancement will have significant impacts through 2012 and beyond. The Act and improved domestic manufacturing capabilities; provides a three-year extension of the production tax credit and • Address potential concerns about local siting, wildlife, and offers alternatives to tax credits for renewable energy systems. The environmental issues within the context of wind-generated production tax credit provides a 2.1¢/kilowatt-hour credit for every electricity. kilowatt-hour produced by new qualified wind power facilities during the first 10 years of operation, provided the facilities are To meet these challenges, the Wind Program works to improve placed in service before the tax credit’s expiration date, now the cost, performance, and reliability of land-based and offshore extended through 2012. wind technologies. The program also addresses barriers to wind energy’s rapid market expansion such as electrical transmission The Recovery Act also allows wind energy facility owners to and integration, manufacturing, project siting, and public and choose a 30% business energy investment credit rather than market acceptance. This work is conducted through cost-share the production tax credit through 2012. Alternately, owners of agreements with industry and agencies such as DOE’s Office qualified facilities could choose to receive a grant equal to 30% of Electricity Delivery and Energy Reliability, transmission and of the tax basis (that is, the reportable business investment). The distribution industry groups, the Federal Aviation Administration, grants will be paid directly from the U.S. Treasury. Businesses and the Department of Defense, and the Department of the Interior’s homeowners can also claim the full 30% tax credit for qualified Minerals Management Service. Cooperative research and small wind systems (under 100 KW) with no dollar cap (previously development is performed with the International Energy Agency, $4,000) on the credit. academia, and DOE’s national laboratories. The Wind Program For wind turbine manufacturers, the Recovery Act provides focuses specialized technical expertise, comprehensive design a tax credit for qualified investments in new, expanded, or and analysis tools, and unique
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