Message-ID: <199604131451.HAA19815@cdp.igc.apc.org> Date: Sat, 13 Apr 1996 07:51:52 -0700 From: Tom Gray <mailto:tomgray@IGC.APC.ORG> Subject: World Wind Market Projections To: Multiple recipients of list DEVEL-L <mailto:DEVEL-L@AMERICAN.EDU>
NEWS
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* from the *
* AMERICAN WIND ENERGY ASSOCIATION *
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FOR IMMEDIATE RELEASE: April 12, 1996
Contact: Jessica Maier, (202) 383-2500
WORLDWIDE WIND CAPACITY SURPASSES 5,000 MW
MARK--AND CONTINUED GROWTH IS EXPECTED
New Installations Expected to Total 18,500 MW by 2005
Worldwide installed wind power capacity surged to over
5,000 MW during the first quarter of 1996, and this strong growth
in international wind energy markets is expected to continue,
according to official projections released today by the American
Wind Energy Association, which referred to wind power as "the
world's fastest growing electric power technology."
Total installed wind power capacity will reach over 18,500
MW by 2005, according to the projections, representing a market
of over $18 billion. Over 1,300 MW of new wind energy capacity
was installed around the world in 1995 alone, a 35% percent
increase in capacity over 1994. However, an imbalance in the
world market exists: while many markets flourished in 1995, some
slowed drastically--particularly the U.S.
Germany and India accounted for almost two-thirds of all
new installations last year-- nearly 900 MW. The U.S., on the
other hand, lagged behind, adding only 41 MW of new wind
capacity. In the last ten years, the U.S. share of total world
wind energy capacity has dropped from about 90 percent to 30
percent. "The rest of the world is forging ahead with wind
energy development and leaving the U.S. in the dust," said AWEA's
executive director Randall Swisher. "The current and future
competitiveness of the U.S. in global energy markets is at risk."
Stagnation in the U.S. market can be attributed to the
pending restructuring of the electric utility industry, which has
made utility power planners gun-shy of planning any new capacity
additions. The outlook for U.S. growth is hopeful, though, if
the industry is restructured in a way that is friendly to
renewables. AWEA's projections predict that U.S. wind capacity
additions will grow slowly until about 2000, and then increase
over the next several years, totalling about 2,700 MW of new
capacity by 2005.
"Utility restructuring has caused a short-term mentality
among many power planners, making them hesitant of any new
capacity additions," said Swisher. "This short-sighted outlook
could unfairly disadvantage renewables when the industry is
restructured. If the U.S. wants to retain its leadership role in
world energy markets, strong policy encouraging renewables must
exist." Some of the policies AWEA proposes to ensure U.S.
competitiveness are:
o As part of restructuring, implementation of a renewables portfolio
standard, which would rely on market mechanisms to ensure that
a minimum level of renewables is developed.
o Sufficient federal research and development funding to ensure that
wind technology continues on the course that has reduced its
costs over 80% in the last 15 years.
o Continuation of current production tax credits to help wind achieve
tax equity with conventional fuel sources.
o Federal international aid and trade programs to support U.S. industry
in the development of renewable energy projects worldwide.
AWEA's projections are based on publicly and privately
held information on existing installations and planned capacity
additions worldwide. The projections assume no significant
political shifts that would cause an increase or decrease in
national support for wind energy. They also assume only a
moderate shift in fossil fuel prices and efficiency gains from
combustion technologies, as well as moderate improvements in the
cost of wind-generated power.
Growth of Installed Wind Capacity in Selected Countries, 1995
Country New capacity Total installed % growth,
installed, 1995 capacity, 1995 1995
India 383 MW 565 MW 210%
Spain 73 MW 145 MW 100
Germany 498 MW 1136 MW 77
Holland 106 MW 259 MW 69
United Kingdom 46 MW 193 MW 31
China 7 MW 36 MW 23
Denmark 75 MW 614 MW 14
United States 41 MW 1770 MW 2.4
TOP FIVE GROWTH MARKETS FOR WIND ENERGY
Projected Additions Through 2005
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Total
U.S. 30 150 200 150 200 300 300 400 500 500 2730
India 400 300 300 250 250 200 200 200 200 200 2500
China 50 50 50 100 150 150 150 200 200 200 1300
Germany 300 200 100 100 100 100 100 100 100 100 1300
Spain 100 125 150 150 200 150 100 100 100 100 1275
--30--
AWEA, formed in 1974, is the national trade association of the
U.S. wind energy industry. AWEA's membership of over 800 includes
turbine and component manufacturers, project developers,
utilities, academicians, and interested individuals from 49
states.
A detailed description of the Renewables Portfolio Standard is
available from AWEA on the World Wide Web at
<http://www.igc.apc.org/awea/aweapol.html>.