1 / 19

An Overview of the U.S. Wind Energy Industry

An Overview of the U.S. Wind Energy Industry. Presented by Edward Zaelke President, American Wind Energy Association Partner, Chadbourne & Parke LLP, Los Angeles, California ELFA Financial Institutions Conference Dallas, Texas April 16, 2007. The Current State of the U.S. Wind Energy Industry .

sherman
Download Presentation

An Overview of the U.S. Wind Energy Industry

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. An Overview of theU.S. Wind Energy Industry Presented byEdward ZaelkePresident, American Wind Energy AssociationPartner, Chadbourne & Parke LLP, Los Angeles, CaliforniaELFA Financial Institutions ConferenceDallas, TexasApril 16, 2007

  2. The Current State of theU.S. Wind Energy Industry 22% Growth Rate over the past 5 years27% Growth Rate in 2006 30 to 35% Growth expected in 200711,603 MW installed capacity at the end of 2006 (compared to approximately 970,000 MW of overall installed capacity of U.S. electricity generation)Wind = 2nd leading source of new generation

  3. Wind Energy Growth • What is causing this recent growth in the U.S. wind energy industry? • Can the growth in the U.S. wind energy industry continue?

  4. U.S. Wind Energy Installed Capacity 1980-2007 (est.)

  5. Three Primary Factors are Fueling the Recent Growth of Wind Energy in the United States • Cost Competitiveness Created by Technological Advances • Government Financial Support • State Renewable Portfolio Standards

  6. The Cost of Wind Energy Production(Cents per Kwh)

  7. The Cost of Wind Energy vs. Other Technologies Source: Simmons & Company International

  8. Government Financial Support for Wind Energy In the United States, 63.4% of the average capital costs of a wind energy project is “paid” by the federal government. Another 10% is “paid” by state and local governments.

  9. State Renewable Portfolio Standards now Exist in 21 States and the District of Columbia • Current and Proposed RPS requirements would see approximately 43,000 - 55,000 MW installed by 2020 • Additional renewable energy “goals” established in IL, IA, VT, and ME

  10. U.S. Wind Energy – Can the Growth Continue? Consider the following drivers: • Environmental Concerns • Fuel Diversity • Energy Security • Increasing Electricity Demand • Resource Availability

  11. 1. Environmental Concerns Over 40% of the Greenhouse-causing CO2 emissions come from our production of electricity. U.S. CO2 Emissions Source: U.S. Environmental Protection Agency

  12. 2. Fuel Diversity How does the U.S. Currently Generate its Electricity? Total = 4,055 Billion KWhElectric Utility Plants = 63.0%Independent PowerProducers & CombinedHeat and Power Plants = 37.0% Source: Energy Information Administration, Form EIA-860, “Annual Electric Generator Report.”

  13. 3. Energy Security Issues How will the U.S. meet its future natural gas needs? Source: Wall Street Journal The countries listed above hold 73% of the global reserves of natural gas.

  14. 4. Increasing Electricity Demand Electricity Demand is Expected to Increase by 19% Over the Next Decade Source: North American Electric Reliability Council, 2006 Long-Term Reliability Assessment, October 2006

  15. Regional Wind Resource (GW) First bar is Onshore, second offshore

  16. National Supply Curve, 20% Available Transmission Wind costs are with PTC and do not include integration costs

  17. Policy Matters! Consider the Current Political Climate • New Congress • Global Warming Concerns • International Pressures • Continuing National Security Issues • Creation of Domestic Jobs

  18. Conclusion: The Growth Outlook for Wind Energy • In a stable policy environment 200,000 to 350,000 MW of new wind energy capacity in the U.S. is possible. • 45,000 to 75,000 MW of new capacity over the next 8 to 10 years is likely if public support continues. • What will be required? • Renewal of Federal Production Tax Credit • Federal Renewable Portfolio Standard • Transmission Investment • Continuing Cost Competitiveness (which may include the impact of a carbon tax)

  19. Contact Information Edward W. ZaelkePartnerChadbourne & Parke LLP350 S. Grand Avenue, 33rd FloorLos Angeles, California 90071Phone: (213) 892-2012email: ezaelke@chadbourne.com

More Related