New Hampshire, USA --
Wind energy continues to improve its standing in the U.S. energy
footprint, generating over 167 million MWh in 2013 and accounting for
more than four percent of electricity generation, according to the
latest information from the Energy Information Administration (EIA) and
American Wind Energy Association (AWEA).
Wind energy also has
represented 30 percent of all new generating capacity over the last five
years. The data builds on AWEA's 4Q13 market review with the EIA's December generation data, and is a preview of AWEA's full annual market update in early April.
"We knew there'd be a big jump" showing wind energy uptake over the
past year, given how much wind capacity was built out and completed at
the end of 2012 and given a full year of generation under its belt,
explained Elizabeth Salerno, VP of industry data and analysis.
Nine states now get more than 12 percent of their electricity
generation from wind power, and 17 states top 5 percent. Iowa and South
Dakota still rank 1-2 in U.S. wind energy generation, increasing their
production in 2013 from ~24 percent each to more than 27 percent and 26
percent, respectively. Kansas leapt from 11.4 percent wind contribution
to more than 19 percent, after doubling its wind energy output in 2012,
and other big climbers on the list included Idaho (11.3 percent to 16.2
percent) and Oklahoma (10.5 percent to 14.8 percent). Texas continued
to shine -- generating nearly 36 million megawatt-hours of wind energy
in 2013, enough to power 3.3 million homes -- as the completed CREZ
transmission lines are finally enabling new capacity development in the
panhandle to be delivered to load centers in Dallas and Houston.
California increased its wind generation contribution to 6.6 percent,
which is "pretty incredible" for a state with such heavy load and
demand, she said.
But it's not all about the big wind states getting bigger. Salerno
pointed to new markets where wind is starting to gain traction due to
technology upgrades (taller turbines, longer blades), RPS programs, and
costs coming down. Michigan, for example, doubled its wind generation
contribution in 2013 (though still a small ~2.4 percent of total
generation) thanks to a number of new utility-scale projects by DTE
Energy and driven by the state's RPS program, and costs coming down by
half in the past few years with bids now as low as 4-5 cents/kWh.
Also note that these numbers reflect in-state wind energy generation,
not where that wind energy is put to use -- often it's piped into other
states and regions, e.g. from the Dakotas into Illinois, Maine down to
Massachusetts, and Kansas/Oklahoma/Texas into the Southeast states,
often to meet different states' RPS needs. But that too reflects the
growing reality for many states that wind-produced energy under
long-term contracts is increasingly becoming a cost-effective option.
Note from AWEA's 4Q13 report, this chart illustrates the impact of
uncertainty about the potential expiration (and ultimate last-minute
renewal) of the production tax credit (PTC) at the end of 2013, which
basically cleaned out the development pipeline, and took half of 2013 to
recover. By December 2013 it had built up again, to record levels: AWEA
is tracking a record 12 GW of wind project capacity under construction,
and Texas' ERCOT alone has 7 GW of new capacity now under construction.
Softening the PTC's language to "under construction" criteria removed
short-term urgency around the PTC, which was officially allowed to
expire in December. Industry participants and experts generally believe 2014 will be a good growth year for wind energy, not equaling the
boom seen in 2012.
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