World Wind Watch | Green Energy News

May 9, 2004 – Vol.9 No.7

WORLD WIND WATCH.

A tenfold increase in sales. That’s what the European Wind Energy Association (EWEA) and Greenpeace envision for the wind energy industry by 2020.

The organization has launched Wind Force 12, its strategic plan for the wind industry at the opening day of WindEnergy 2004 in Hamburg, Germany. In the plan, EWEA thinks that wind energy could supply 12 percent of the world’s electricity demand by 2020, be an EUR 80 billion ($95 billion) annual business, and create 2.3 million jobs. By 2020 EWEA also thinks the cost per kilowatt hour of wind generated electricity will drop to EUR 2.45 cents (2.93 cents) with installation costs dropping to EUR 512 per kilowatt ($652).

The cumulative investment in wind energy could reach EUR 131 billion ($157 billion) in Europe by then, EUR 176 billion ($210 billion) in the U.S. and China come on board with EUR 105 billion ($126 billion) investment.

And what will help this growth? Continued economic measures to support wind energy and the lifting of barriers to grid access and the lifting of administrative barriers. Visit the EWEA at http://www.ewea.org/ .

This year, 2004, is expected to be a down year for new wind capacity in the U.S. because of the delay in passage of the production tax credit (PTC) by Congress. The slow year could yield only 500 megawatts of new capacity compared with the 1700 megawatts installed in 2003.

In the U.S. the PTC for wind energy is a step closer to being restored with the passage in the Senate of S.1637. The PTC, which was included in a corporate tax bill, would extend the credit to the end of 2006 and would also be stretched to include solar, geothermal, small hydro, municipal solid waste, biodiesel fuel, and combined heat and power projects.

The bill would also create a 30 percent tax credit, or up to $2000 for the purchase of small wind turbines (less than 75 kilowatts) and allow a tradable credit (renewable energy certificate) for a limited number of tax-exempt entities.

S.1637 also included provisions for energy efficiency, hybrid cars, and tax breaks for natural gas producers as well as legislation that would encourage the construction of a gas pipeline from Arctic Canada to the U.S.

For the bill make its way to the President’s desk, a House of Representatives bill with similar provisions (H.R. 2896) must be passed, a compromise bill be worked out in committee, and then the final draft must be approved by both houses. The House also wants legislation that includes protection against product-defect lawsuits for the makers of MBTE, a gasoline additive.

The American Wind Energy Association (AWEA) is encouraging members and others to help the House bill to pass. Through its legislative action website people can send a pre-written letter, or write their own to their Congressmen in support of H.R. 2896. Telephone calls or faxes can also be sent. Visit the legislative action website at http://www.windenergyaction.com/ .

Despite what happens on Capitol Hill, the AWEA has advised operator of the power grid in the Mid-Atlantic U.S. states to prepare for the potential of up to 5000 megawatts of new wind capacity to be built in the near term. Already 1100 megawatts in new capacity is pending for projects proposed for Pennsylvania, Maryland, West Virginia, and New Jersey. The AWEA expects additional wind capacity because of the voluntary purchases of wind energy, Renewable Portfolio Standards (RPS) adopted by the states and the continuing high cost of natural gas. Visit the AWEA at http://www.awea.org/