* Wiser, R.; Bolinger, M. (2007).
Annual Report on U.S. Wind Power Installation,Cost, and Performance Trends: 2006
. 24 pp.; NREL Report No. TP-500-41435;DOE/GO-102007-2433,www.nrel.gov/docs/fy07osti/41435.pdf .
3Annual Report on U.S. Wind Power Installation, Cost, and Performance Trends: 2007
The U.S. wind industry experienced unprecedentedgrowth in 2007, surpassing even optimistic projectionsfrom years past. This rapid pace of development has madeit difficult to keep up with trends in the marketplace. Yet,the need for timely, objective information on the industryand its progress has never been greater. This report—the second of an ongoing annual series—attemptsto meet this need by providing a detailed overview of developments and trends in the U.S. wind power market,with a particular focus on 2007.As with the previous edition*, this report beginswith an overview of key wind power development andinstallation-related trends, including trends in capacitygrowth, in turbine make and model, and among windpower developers, project owners, and power purchasers.It then reviews the price of wind power in the UnitedStates, and how those prices compare to the cost of fossil-fueled generation, as represented by wholesale powerprices. Next, the report describes trends in installed windproject costs, wind turbine transaction prices, projectperformance, and operations and maintenance expenses.Finally, the report examines other factors impacting thedomestic wind power market, including grid integrationcosts, transmission issues, and policy drivers. The reportconcludes with a brief preview of possible developmentsin 2008. This version of the Annual Report updates datapresented in the previous edition, while highlightingkey trends and important new developments from 2007.New to this edition is a section on the contribution of windpower to new capacity additions in the electric sector, dataon the amount of wind in utility systems, a summary of trends in wind project size, a discussion of the quantity of wind power capacity in various interconnection queues inthe United States, and a section that underscores domesticwind turbine manufacturing investments.A note on scope: this report concentrates on larger-scalewind applications, defined here as individual turbines orprojects that exceed 50 kW in size. The U.S. wind powersector is multifaceted, however, and also includes smaller,customer-sited wind applications used to power theneeds of residences, farms, and businesses. Data on theseapplications are not the focus of this report, though abrief discussion on
Distributed Wind Power
is providedon page 4.Much of the data included in this report were compiledby Berkeley Lab, and come from a variety of sources,including the American Wind Energy Association (AWEA),the Energy Information Administration (EIA), and theFederal Energy Regulatory Commission (FERC). TheAppendix provides a summary of the many data sourcesused in the report. Data on 2007 wind capacity additionsin the United States are based on preliminary informationprovided by AWEA; some minor adjustments to thosedata are expected. In other cases, the data shown hererepresent only a sample of actual wind projects installed inthe United States; furthermore, the data vary in quality. Assuch, emphasis should be placed on overall trends, ratherthan on individual data points. Finally, each section of thisdocument focuses on historical market information, withan emphasis on 2007; the report does not seek to forecastfuture trends.
AWEA American Wind Energy AssociationBPA Bonneville Power AdministrationCOD commercial operation dateCREZ competitive renewable energy zoneDOE U.S. Department o EnergyEIA Energy Inormation AdministrationERCOT Electric Reliability Council o TexasFERC Federal Energy Regulatory CommissionIOU investor-owned utilityIPP independent power producerISO independent system operatorLBNL Lawrence Berkeley National LaboratoryMISO Midwest Independent System OperatorNREL National Renewable Energy LaboratoryPOU publicly owned utilityPPA power purchase agreementPTC production tax creditPUC public utility commissionREC renewable energy certiicateRPS renewables portolio standardRTO regional transmission organizationSPP Southwest Power PoolTVA Tennessee Valley AuthorityWAPA Western Area Power Administration