WIND WANTS NEW ENERGY STANDARD

Wind-Turbine Makers Press for Green Mandates
Russell Gold, September 22, 2009 (Wall Street Journal)

"Wind-turbine makers say growth in their industry could dramatically slow unless the federal government requires more electricity come from renewable energy…New federal stimulus grants helped restart a stalled wind-power industry, but Vic Abate, a General Electric Co. vice president in charge of its wind-turbine business, said orders for wind turbines to be built in 2012 and thereafter have been 'extremely light.'

"…[W]ind-power installation by 2012 could fall back to one-third of last year's construction levels without additional government support…The biggest impact will be felt by the wind-turbine makers. Last year, GE made 43% of the turbines in the U.S. market. Competitors including Denmark's Vestas Wind Systems A/S, Germany's Siemens AG and India's Suzlon Energy Ltd. each held about 10% of the market…Vestas, the second-largest turbine manufacturer in the U.S., recently reported its order backlog in North and South America was down 66.6% from a year earlier…[A] strong renewable-energy standard is needed to spur renewable-energy growth."

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"…[T]he U.S. wind industry has made passage of a national renewable-electricity standard -- a requirement for electric power from sources such as wind, solar and geothermal -- a top priority…[The industry’s] pitch to lawmakers is jobs…[W]ind power added 35,000 jobs in the past year.

"Numerous states already have passed renewable-electricity requirements, including California, where the governor last week signed an order requiring 33% of electricity come from renewable sources by 2020…But the wind industry insists that a national policy is needed to spur utilities to sign long-term deals for renewable energy. Without these long-term deals, wind farms can't get financing. And without wind-farm development, the thousands of jobs manufacturing high-tech blades, towers and other turbine parts could be in jeopardy."

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"Critics aren't convinced…[T]he Institute for Energy Research, a free-market energy think tank, said the government shouldn't be promoting renewable energy through mandates…But wind energy has been a success story for the U.S., which generates more electricity from wind than any other country. In 2008, about 8.5 gigawatts of wind power, capable of powering more than two million homes, were installed in the U.S.

"The federal government has been responsive to the needs of the wind industry…[C]ash grants to wind-farm developers…[are] helping restart wind projects stalled by the financial crisis. But the industry is not seeing many new orders for wind farms to be built in 2012 and 2013. Typically, turbine orders are placed two to three years ahead of construction…The climate bill passed by the House of Representatives in June -- and now under consideration in the Senate -- calls for 20% of electricity to come from renewable sources by 2020. A [Senate bill]… requires a weaker standard: 15% of electricity from renewable sources by 2021…[T]he lower standard would stall wind growth for five years…[but the] lower standard may be too high for some utilities…"