WIND IN PAIN

AWEA Announces ‘Dismal’ Numbers for 1H 2010; The lack of support for a long-term mandate from Congress has brought the wind industry to the edge of a cliff.
Herman K. Trabish, July 28, 2010 (Greentech Media)

"The numbers are impressive -- but not in a good way. ‘It is dismal and getting worse,’ said American Wind Energy Association (AWEA) CEO Denise Bode about the numbers in the just-released AWEA Mid-Year 2010 Market Report...

"It is now irrefutably obvious, according to Bode, that the failure of Congress to provide a long-term mandate for renewable energy is causing utilities across the country to choose natural gas and coal over wind…The 700 megawatts (MW) of new installed capacity in the second quarter brought the wind industry's 2010 total to 1,239 MW, a remarkable 71 percent below the 2009 number and 57% below the 2008 number."

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"The report comes just as Senate Majority Leader Harry Reid (D-Nev.) is poised to bring forward a starkly scaled back energy bill proposal for debate. The renewable energy industries and a broad coalition of supporters ranging from the United Steelworkers to the Union of Concerned Scientists are up in arms because Reid's legislation does not include a Renewable Electricity Standard (RES) mandating that utilities obtain a portion of their power from renewable sources over the next ten years…[Bode said the] wind industry needs an RES to provide a long-term market signal to manufacturers and developers…

"…There are over 5,000 MW of new wind power capacity under construction right now…largely because Recovery Act funding…[but there is little] pipeline development behind that…[like the industry] is on a cliff…"

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"AWEA expects the total for 2010 to be 25 percent to 45 percent below 2009…[suggesting] an even worse 2011 if Congress does not act. Though Recovery Act provisions held the industry up in 2009, only longer-term policy supports will alter the current pattern of faltering new demand, disappearing new power purchase agreements (PPAs) from utilities, and dwindling plans for new manufacturing facilities.

"The pending Senate legislation…is not expected to contain an RES, despite the fact that both former Senate Majority Leader Tom Daschle (D-SD), now working as a consultant to AWEA, and Bode refute Reid's claim that there are not the filibuster-breaking 60 votes to pass it…[Bode also] challenged the speculation that the 60 votes backing an RES might conflict with obtaining 60 votes for the Reid bill…AWEA had no comment on the speculation that both parties are happy to keep the renewables…[as] a campaign issue in the upcoming November midterm elections."