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U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

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Page 1: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

U.S. Wind Industry Market Update

Husum Wind Energy23/9/10

Husum, Germany

Amna KhanDeputy Director, Core Member Services

Page 2: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

American Wind Energy AssociationAmerican Wind Energy Association

Trade association for the wind energy industry

founded in 1974

Over 2,400 business members

www.awea.org

• Develops policies and conducts analysis to support wind industry growth

• Executes wind industry’s legislative agenda

• Promotes wind energy through advocacy, advertising and media relations

• Convenes conferences and workshops to educate the public and bring industry members together

Page 3: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

AWEA’s Regional PartnersAWEA’s Regional Partners

Source: AWEA U.S. Wind Industry Annual Market Report

Page 4: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Market & Policy UpdateMarket & Policy Update

Page 5: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

700 MW installed in 2Q10, for a total of at least 1,239 MW for the first half of 2010.

Total utility-scale wind capacity installed in the U.S. through the first half of 2010 is 36,303 MW

Installations in the first half of 2010 are down 71% and 57% from 2008 and 2009 first half levels respectively.

U.S. Annual and Quarterly U.S. Annual and Quarterly Wind InstallationWind Installation

Source: AWEA

Page 6: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

1Q

10

2Q

10

Win

d C

ap

ac

ity

In

sta

lle

d (

MW

)

Wind Installations by Quarter

Wind Installations by QuarterWind Installations by Quarter

Source: AWEA

Page 7: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Wind as Choice for New GenerationWind as Choice for New Generation

Source: AWEA, SEIA, SNL, LBL, EIA1H 2010 – estimate, final data at year end

Page 8: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Installed Capacity by StateInstalled Capacity by State

Source: AWEA Second Quarter 2010 Report

Page 9: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

0

1,000

2,000

3,000

4,000

5,000

6,000

2007 2008 2009 2010

Win

d C

ap

ac

ity

Ins

talle

d (

MW

)

First Half Second Half

Wind Installations by HalfWind Installations by Half

Installations in the first half of 2010 are down 71% and 57% from 2008 and 2009 first half levels respectively, and are more in-line with 2007 installations.

Source: AWEA

Page 10: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Projects Under ConstructionProjects Under Construction

> 5,500 MW under construction at end of 2Q 2010

Source: AWEA Second Quarter 2010 Report

Page 11: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

TOP 20 WIND POWER OWNERS IN U.S.

NextEra Energy Resources continues to lead ownership of wind assets in the U.S., with over 7,400 of the over 35,000 MW installed.

Eight other companies now own over 1,000 MW of wind power assets, up from five last year. The top five companies own about 49% of the total U.S. fleet, down from 53% last year.

Project Developers Ranking in Project Developers Ranking in 2009 2009

Page 12: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Manufacturers’ Share of 2009 Manufacturers’ Share of 2009 Installations in U.S.Installations in U.S.

Source: AWEA U.S. Wind Industry Annual Market Report, 2009

Page 13: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Manufacturers of Installed Turbines Manufacturers of Installed Turbines Diversifying Over TimeDiversifying Over Time

Source: AWEA, U.S. Wind Industry Annual Report, Year Ending 2009

Page 14: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

ALL ONLINE WIND MANUFACTURING FACILITIESCurrent Manufacturing FacilitiesCurrent Manufacturing Facilities

Source: AWEA U.S. Wind Industry Annual Market Report, 2009

Page 15: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

TOTAL U.S. WIND INDUSTRY EMPLOYMENT

At the end of 2009, wind industry employment remained steady with 85,000 Americans employed directly and indirectly by the wind industry.

Compared to 2008, the construction sector employed an additional 500 workers in 2009 due to increased installation of new wind turbines. Operations and management jobs also grew by 1,000 over the previous year.

However, due to many turbines on the market in 2008 and the credit crisis, 1,500 manufacturing jobs were lost in 2009.

U.S. Wind Industry JobsU.S. Wind Industry Jobs

Page 16: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Wind Manufacturing ActivityWind Manufacturing Activity 2 new manufacturing facilities were brought online in the first half of 2010,

as compared to 5 facilities brought online in first half 2009 and 7 facilities brought online in first half 2008.  New announcements are at similar levels. 

0

2

4

6

8

10

1H2007 2H2007 1H2008 2H2008 1H2009 2H2009 1H2010

Nu

mb

er o

f M

anu

fact

uri

ng

Fac

iliti

es

New Online Manufacturing Facilities

Source: AWEA

Page 17: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Efforts on ManufacturingEfforts on Manufacturing

June 2010: AWEA, BlueGreen Alliance, and United Steelworkers released a blueprint for expanding domestic manufacturing

Page 18: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Forward Look for 2010Forward Look for 2010

Source: AWEA

Low wind installations in through 2Q put the annual expectations for 2010 in line with 2007 levels.

Even with over 5,500 MW under construction and a more active second half of year in store, AWEA expects that 2010 installations will likely be 25% to 45% below 2009 installations, depending on policy developments.

Much of the near-term activity is now concentrated in the Midwest, Northwest, and Intermountain regions.

Page 19: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Wind Projects Waiting in QueuesWind Projects Waiting in Queues

Close to 300,000 MW of proposed wind projects are in interconnection queues.

Source: AWEA, U.S. Wind Industry Annual Market Report, 2009

Page 20: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

New Transmission Lines ProposedNew Transmission Lines Proposed

Source: AWEA, U.S. Wind Industry Annual Report, Year Ending 2009

Page 21: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Proposed & Planned U.S. Offshore ProjectsProposed & Planned U.S. Offshore Projects

Page 22: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Available AWEA Products on Wind MarketAvailable AWEA Products on Wind Market

Page 23: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Near-term Policy AgendaNear-term Policy Agenda

National Renewable Electricity Standard (RES)

Extension of American Reinvestment & Recovery Act (Stimulus bill)1603 Treasury Grant program under construction deadline

Expansion of Manufacturing Tax Credit (48C)

Page 24: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

The 1603 Grant Has Kept The 1603 Grant Has Kept Project Financing AfloatProject Financing Afloat

0 MW

2,000 MW

4,000 MW

6,000 MW

1H 09 2H 09 1H 10

Cash Grant MW

Without Grant

1603 Grant has supported 87% of

2010 Projects

Page 25: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

ARRA: Tax ProvisionsARRA: Tax ProvisionsSection 48C ProgramSection 48C Program

• The Recovery Act included a 30% investment tax credit for new investments in clean energy manufacturing. In early 2010, the Treasury announced recipients of the $2.3

billion manufacturing tax credit program. Over 50 wind related manufacturing facilities received the tax

credit, receiving approximately 16% of the funding.

Alstom Inc.and Subsidiaries

Brevini Wind USA, Inc.

Cardinal Fastener & Specialty Co

Enertech, Inc.

Hexcel Corporation

Ingeteam Inc.

Kaydon

Martifer-Hirschfeld Energy Systems LLC

Mistubishi Power Systems Americas, Inc.

Nordex USA Inc

Nordic Windpower

Roller Bearing Co. of America, Inc.

Schuff Steel Company

Siemens Industry, Inc.

Tindall Corporation

TPI Composites, Inc.

Vela Gear Systems, Inc.

Wausaukee Composites, Inc.

Winergy Drive Systems Corp.

Sample of Recipients

Page 26: U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany Amna Khan Deputy Director, Core Member Services

Questions? Questions?

Ms. Amna Khan

Deputy Director, Core Member Services

American Wind Energy Association

1501 M Street, NW Suite 1000

Washington, DC 20005

[email protected]

202.383.2523