Basics of Wind Power in the U.S.

Current and Potential Usage

According to American Wind Energy Association, there is more than 9,000 MW of generating capacity attributed to wind power. These units provide 25 billion kWh of electricity or one percent of the power generated in the U.S. each year. They also estimate that wind power could potentially account for 10.8 trillion kWh per year – equal to the amount of energy in 20 million barrels of oil. In order for wind energy to be viable in a given area, minimum wind speeds between 9 and 13 miles per hour for small and larger wind turbines must be available, speeds that are common across the U.S.

Wind Farms

Assuming that a specific area has the suitable wind speed, volume, and duration characteristics, and knowing that the kinetic energy increases exponentially with an increase in wind speed, the remaining variable is the number of wind turbines placed in a specific area; and large numbers of turbines in a concentrated area improve cost effectiveness. These groups of wind turbines, designed to generate the maximum amount of electricity out of the available wind resources, are referred to as wind farms. Capacities of these wind farms, comprised of wind turbines with power capacities between 700 Kw and 1.8 MW each, typically range between a few MW to hundreds of MW, with the world’s largest in Ireland providing 520 MW of power.

Cost of Wind Power Continues to Decrease

The cost of wind power continues to decrease as technology and designs improve. In the early 1980s the cost of wind power ran around 30 cents per kWh and by 2006 that cost was reduced to 3 to 5 cents per kWh where there was abundant wind. On average, the cost of wind power in the U.S. ranges between 4 and 10 cents per kWh, placing it less expensive than other forms of renewable energy and only slightly more expensive than nuclear, coal and natural gas.

Wind Power Aided by Economic Incentives

As the gap between the cost of wind power and other sources of electricity continues to narrow, the U.S. Government offers economic incentives to improve the feasibility of wind energy as part of the country’s renewable energy portfolio. These incentives include:

• Production Tax Credit: Wind power generators have received 1.8 cents per kWh of wind energy produced during the initial 10 years of operation.
• Net Metering: Individuals and businesses producing renewable energy are provided credits for each kWh they produce beyond their consumption level. These credits count as payment toward any electricity drawn from the grid.
• Renewable Energy Credits: In some of the states where renewable energy quotas have been established for power companies, individuals can qualify for tradable credits for each MWh of renewable energy they produce.
• Installation Tax Credits: In some instances, businesses can receive tax credits for the costs of establishing a renewable energy system.

Wind Power Remains a Viable Solution

Notwithstanding government subsidies, wind energy is a viable source of power. Estimates regarding the potential of wind power to supply electricity range between 20 percent (by Battelle Pacific Northwest Laboratory) and 100 percent (by the American Wind Energy Association). However, as a minimum target, these same institutions agree that by 2020, wind will provide for 6 percent of U.S. electric consumption. This represents a 6-fold increase over current levels, but lags behind the United Kingdom with a 10 percent goal for 2010, Germany currently at 8 percent and Denmark, already at 20 percent.