AWEA News Releases
FOR IMMEDIATE RELEASE:
April 9, 2001
Contact:
Jaime Steve (202) 383-2506
Jon Chase (202) 383-2507
Christine Real de Azua (202) 383-2508

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Wind R&D Cuts Are “Penny Wise & Pound
Foolish,” Says Wind Energy Group

Energy crisis calls for increased investments in both utility-scale
and small wind systems, says AWEA.

The American Wind Energy Association (AWEA) today criticized the Bush Administration for proposing deep cuts in funding for the federal wind energy research and development (R&D) program and other renewable energy research efforts.

“Cutting wind energy R&D efforts during an energy crisis is penny wise and pound foolish,” said Jaime Steve, Director of Legislative Affairs for the American Wind Energy Association. “Continued investment in clean, domestic energy alternatives like wind power will allow the industry to keep driving down costs by improving the efficiency of new high-tech wind turbines,” Steve said.

“Just as wind-generated electricity is becoming a cost-competitive power source - with prices in the range of 3 to 6 cents per kilowatt-hour, depending on project size, local wind speeds, and availability of the 1.5 cent per kilowatt-hour federal production tax credit - the Bush Administration proposes pulling the rug out from under the industry. These cuts are not a sensible component of sound energy strategy,” Steve said.

“Federal wind program personnel at the Department of Energy (DOE) and the National Renewable Energy Laboratory (NREL) have worked long and hard to develop a research program that cooperates with industry in solving real-world challenges,” Steve said. Working with NREL, the industry has reduced utility-scale wind power costs by more than 80 percent over the last 20 years. Today, additional R&D is needed to develop wind turbines capable of operating in areas with lower wind speeds. This would expand wind development potential by 20 times as well as allow the placement of turbines closer to existing transmission lines.

Currently, clean, domestic wind energy accounts for about 2,500 megawatts of electric capacity in the United States, generating enough electricity to serve about 600,000 American households, or 1.5 million people. This figure is likely to double by mid-2002. “As the demand for electricity is increasing, now is not the time to abandon these successful efforts,” Steve said.

The current level of funding for renewable energy is $374.99 million. The
Bush Administration's fiscal year 2002 request for renewable energy would cut that funding to $237.445 million, of which $20.5 million would be for wind energy and $2.059 million for the Renewable Energy Production Incentive (REPI) for consumer-owned electric utilities.  DOE’s wind program is currently funded at $40 million, $5 million of which is used for R&D on small wind systems (rated 75 kilowatts and below). For fiscal year 2002, the wind industry is seeking an increase to $55 million, including $10 million for R&D on small wind systems. 

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AWEA, formed in 1974, is the national trade association of the U.S. wind energy industry. The association’s membership includes turbine manufacturers, wind project developers, utilities, academicians, and interested individuals. More information on wind energy is available at the AWEA web site: www.awea.org


WIND ENERGY PRESS BACKGROUND INFORMATION

Wind Energy Statistics

Capacity Installed, U.S.: 2,554 MW (Source: AWEA, end of 2000). This is enough to serve about 600,000 average U.S. households with 1.5 million people. (Source: AWEA estimate.)

Leading States in Capacity Installed, U.S.:

  • California 1,646 MW
  • Minnesota 272
  • Iowa 242
  • Texas 188

Capacity Installed, World: Over 17,000 MW (Source: AWEA, end of 2000.). This is enough to generate 34 billion kWh annually, or as much electricity as 5 million California households, with 12.5 million people, use.

Industry Growth Rate, World: 29% for last five years (1996-2000). (Source: AWEA, end of 2000.)

Number of Wind Turbines Installed, California: 11,700 (Source: AWEA, estimate as of end of 2000.)

Number of Wind Turbines Installed, U.S.: 13,000 (Source: AWEA, estimate as of end of 2000.)

Installed Cost of Wind Energy: 3-6 cents/kWh (assuming use of the federal wind production tax credit). The cost of electricity from a wind plant varies based on its size and the average wind speed. A large plant (50 MW and up) at an excellent site (20 mph average) can deliver power for 3 cents/kWh or less; electricity from a small plant (3 MW) at a moderate site (16 mph) may cost up to 8 cents/kWh. (Source: AWEA)

Declining Cost of Wind Energy: The cost of producing electricity from wind energy has declined by more than 80%, from about 38 cents per kilowatt-hour in the early 1980s to the current range of 3 to 6 cents/kWh. (Source: AWEA)

Largest Wind Farms, Proposed:

  • Stateline (Oregon-Washington) 300 MW
  • King Mountain (Texas) 278
  • Nevada Test Site 260
  • Kvitfjell (Norway) 200

Largest Wind Farms, Operating:

Storm Lake (Iowa) 196.5 MW

High Use Regions for Wind Energy:

“There are three areas in Europe where wind energy is being installed systematically: Denmark, Northern Germany, and Northern Spain. 13% of Danish electricity consumption is covered by wind at present. In the Northern German state of Schleswig-Holstein and in the province of Navarra in Northern Spain the figure is 20%.” - Letter from Soren Krohn, Danish Windturbine Manufacturers’ Association, 4 December 2000.

Operating Characteristics of a Wind Turbine:

It runs at its full rated power output level about 10% of the time.

It is generating some power 60% to 80% of the time.

On average throughout the year, it generates 30% to 35% of what it would generate if it ran at full power all the time.

A typical “cut-in wind speed” (speed at which a turbine begins generating electricity) is about 10.5 mph.

(Source: Ken Cohn, Second Wind, January 2001)

How to Calculate Number of Homes Served: 1 MW of wind generates 2.19 million kWh annually at 25% capacity factor, or 3.07 million kWh at 35% CF. So, using the national average household consumption, 1 MW can serve 200 to 300 households. In California it can provide as much electricity as 300 to 400 households use, in Texas only as much as 150 to 200 households use. (Source: AWEA.) An average American household contains 2.7 people (Source: Energy Information Administration.) So 1 MW can serve 540 to 810 people in the U.S., 810 to 1,080 in California, 405 to 540 in Texas-for round numbers use 700 (U.S.), 1,000 (California), 500 (Texas).

Economic Benefits of Wind Energy:

Windy counties profit from wind development through:

(1) Tax Payments: Every 100 MW of wind development generates about $1 million in property tax revenue. Development of another 1,800 MW of wind this year will mean $18 million annually in tax revenues to rural communities.

(2) Jobs: Every 100 MW of wind development creates about 500 job-years of employment. Installation of 1,800 MW will result in 9,000 job-years.

(3) Payments to landowners: The development of 1,800 MW in the U.S. will mean annual payments of approximately $3.6 million to farm and ranch landowners.

(4) Stable electricity prices: A recent study (January, 2000) found Iowa's electric utility customers could save over $300 million over a 25-year period if a proposal to meet 10% of the state's electric demand through wind energy is adopted. The savings result because the cost of fossil fuels is expected to rise over time, while wind's costs decline. Savings in California, where prices have skyrocketed because of supply constraints, would be enormous.


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