US Wind Power Markets and Strategies, 2008-2020

Abstract

The US wind power market is exploding - accounting for 27% of global wind MW additions in 2007 and resulting in over 8.6 GW under construction in 2008. Cumulative installations grew 45% in 2007 to nearly 17 GW, a number that is expected to reach at least 100 GW by 2020. And with the PTC likely to be extended beyond 2008, the US market will continue to take center stage in the burgeoning wind power industry for years to come.

EER' s new study, US Wind Power Markets and Strategies, 2008-2020, provides critical strategic and tactical support for those seeking to compete in these markets -- developers, IPPs, utilities, turbine manufacturers, component and infrastructure suppliers, EPC providers, financial institutions and investors. Among the key findings in the study:

• Substantial build-out in US wind turbine supply chain underway: Leading US wind IPPs and utilities continue to seek large-scale framework turbine supply contracts, leading to significant flux in developer-OEM relationships. While substantial investments in new supply capacity are underway, framework contracts typically must be signed 2-3 years in advance of project delivery. 2010 may be the earliest year in which substantial cost competition returns to the US wind turbine market.
• Utilities adopting higher-risk wind procurement strategies: US utilities are moving steadily into wind asset ownership and project development, taking on additional risks across the wind value chain. This growing trend in the Midwest and Pacific Northwest is placing greater pressure on IPPs with PTC tax appetite to find creative solutions for power off-take.
• Transmission issues continue to challenge US wind growth in both near and long term: As US wind development booms, transmission expansion has fallen behind leaving IPPs to take proactive approaches to unlock new wind resource areas. Over the longer term, wind grid penetration will play a crucial role in determining the potential ceiling on new wind development in key utility service territories and regions.