The American Wind Energy Association on Wednesday announced that 2008 was shaping up to be another strong year of growth for the U.S. wind power industry, with 1,400 new megawatts -- enough to serve 400,000 homes --- added during the first quarter and investments underway in 17 new power plants. The most compelling sign of how this once marginalized industry is now booming can be seen on a graph from AWEA, showing installed wind capacity doubling between 2006 and 2007.
As Tech Confidential recently reported, the wind industry, long a source of promise, has recently begun to thrive thanks to increased interest in cleaner fuel sources, coupled with improved wind turbine technology. This has helped not just the plants that generate wind power, but all of the companies that manufacture turbines and the venture backed startup companies working on new and improved turbine technology.
Despite this runaway growth that would seem to be an investor's dream, many remain cautious about the wind sector. IPOs have been few and far between. AWEA links much of this caution to the production tax credit in the U.S., which is due to expire later this year. As AWEA data clearly shows, the tax credit in the past has been critical to the success of the wind power industry, which has thrived during the years when the credit was in place, and collapsed when it was taken away.
Although the industry is actively lobbying for an extension of the tax credit this year, when the continued support of wind power is so critical to its mass adoption, they quietly concede that things are a little different now. Wind power economics have improved to the point that, at least in many parts of the country, it is competitive with other fuel sources, even without a tax credit. - Andrea Orr
See May 7 press release from AWEA
See April 1 story from TheDeal.com
See Feb. 15 post from TechConfidential.com
See March 28 post from TechConfidential.com
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