The US Department of Energy (DoE) has released its first annual report on development and trends in the US wind power market over 2006.
Most notably, the report concludes that wind power capacity increased by 27% over the year with the US showing the world’s fastest capacity growth in 2006 when the US installed 2,454 MW of new wind capacity. The states of Texas, Washington, and California lead the growth.
Other key findings suggest there remains substantial potential for the expansion of wind power to achieve approximately 20% of the nation’s generating mix and that wind power is commercially competitive, providing good value in wholesale power markets.
Nonetheless, the cost of turbines has risen since 2002 driven by rises in input material and energy prices, and some shortages in certain turbine components. These higher costs are reversing the decline in total wind project costs although project performance has increased sharply over the last several years, driven in part by improved project siting, and technological advancements.
The report concludes that the wind market is in a period of transition with lectric utilities showing increased interest in wind project ownership, and merchant wind power plants and sales to power marketers becoming more common.
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