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WORLD WIND GENERATING CAPACITY JUMPS 31 PERCENT IN 2001 January 8, 2002
Lester R. Brown
Preliminary data show world wind electric generating capacity climbing from
17,800 megawatts in 2000 to an estimated 23,300 megawatts in 2001--a dramatic
one-year gain of 5,500 megawatts or 31 percent. As generating costs continue to
fall and as public concern about climate change escalates, the world is fast
turning to wind for its electricity.
Since 1995, world wind-generating capacity has increased an astounding 487
percent, or nearly fivefold. During the same period, the use of coal, the
principal alternative for generating electricity, declined by 9 percent.
One megawatt of wind-generating capacity typically will satisfy the electricity
needs of 350 households in an industrial society, or roughly 1,000 people. Thus,
the 23,300 megawatts of generating capacity now in place is sufficient to meet the
residential electricity needs of some 23 million people--equal to the combined
population of Denmark, Finland, Norway, and Sweden.
In wind electric-generating capacity, Germany leads the world with 8,000
megawatts, nearly a third of the total. The United States, which launched the
modern wind power industry in California in the early 1980s, follows with 4,150
megawatts. Spain is in third place, with 3,300 megawatts. Denmark, which is fourth
with 2,500 megawatts, now gets 18 percent of its electricity from wind. Two thirds
of the capacity added in 2001 was concentrated in the top three countries:
Germany added 1,890 megawatts; the United States, 1,600; and Spain, 1,065. For the
United States, this translates into a growth in generating capacity of some 63
percent in 2001.
Despite this spectacular growth, development of the earth's wind resources
has barely begun. In densely populated Europe, there is enough easily
accessible offshore wind energy to meet all of the region's electricity
needs. In the United States, there is enough harnessable wind energy
in just 3 of the 50 states--North Dakota, Kansas, and Texas--to satisfy the
country's electricity needs. And China can easily double its current
electricity generation from wind alone.
In the United States, the cost of wind-generated electricity has fallen from
35¢ per kilowatt-hour in the mid-1980s to 4¢ per kilowatt-hour
at prime wind sites in 2001. (See figure
earth-policy.org/Updates/Update5_data.htm.)
Some recent long-term supply contracts have been signed for 3¢
per kilowatt-hour. With the U.S. adoption of a wind production tax credit in
1993 to offset established subsidies for oil, coal, and nuclear power, growth
surged. New wind farms have come online in recent years in Colorado, Iowa, Kansas,
Minnesota, New York, Oregon, Pennsylvania, Texas, Washington, and Wyoming.
Low-cost electricity from wind brings the option of electrolyzing water
to produce hydrogen, which can easily be stored and used to fuel gas-fired
turbines in backup power plants when wind power ebbs. Over time, hydrogen
produced with wind-generated electricity is the leading candidate to replace
natural gas in gas-fired power plants as gas reserves are depleted.
Hydrogen is also the ideal fuel for the fuel cell engines that every major
automobile manufacturer is now working on. Honda and DaimlerChrysler both plan to
have fuel cell-powered vehicles on the market in 2003.
Wind power offers long-term price stability and energy independence. Not only
are costs low and falling, but with wind-generated electricity there are no abrupt
price hikes, as with natural gas. There is no OPEC for wind,because wind is widely
dispersed. An inexhaustible source of energy, wind offers us more energy than we
can use, and it does not disrupt climate.
Investment in wind turbine manufacture and wind development has been highly
profitable. While high-tech firms as a group suffered a disastrous fall in sales,
earnings, and stock value in 2001, sales in the wind industry soared. For example,
at Danish-based Nordex, one of the world's largest turbine manufacturers, turnover
during the first nine months of 2001 was up 19 percent and new orders were up 56
percent.
Even more impressive than the recent growth in generating capacity are the plans
for future growth. The European Wind Energy Association has recently revised its
2010 wind capacity projections for Europe from 40,000 megawatts to 60,000
megawatts.
France, for instance, which for years had ignored wind power, announced in
December 2000 that it would develop 5,000 megawatts of wind-generating capacity
during this decade. A few weeks later, Argentina announced it was planning to
develop 3,000 megawatts of wind-generating capacity in Patagonia. In April 2001,
the United Kingdom sold offshore lease rights for an estimated 1,500 megawatts of
wind-generating capacity to several different bidders, including Shell Oil. And in
May, a report from Beijing indicated that China would develop up to 2,500 megawatts
of wind capacity by 2005.
In the United States, wind-generating capacity is growing by leaps and bounds.
The 300-megawatt Stateline Wind Project under construction on the border between
Oregon and Washington will be the world's largest wind farm. Texas added some 900
megawatts in several projects during 2001. In South Dakota, Jim Dehlsen, a pioneer
in developing California's wind energy, has secured the wind rights to 222,000
acres of farm and ranchland in the east central part of the state. He plans to
develop a huge 3,000-megawatt wind farm and to transmit the electricity across
Iowa, supplying Illinois and other states in the industrial Midwest.
In Europe, offshore projects are now springing up off the coasts of Belgium,
Denmark, France, Germany, Ireland, the Netherlands, Scotland, Sweden, and the
United Kingdom.
A survey of some 70 wind developers in Germany indicates that they plan to
install 2,500 megawatts of capacity in 2002 and a similar amount in 2003. If they
succeed, they will surpass the German government's 2010 goal of 12,500 megawatts
by the end of 2003.
Projecting future growth in such a dynamic industry is complicated, but once a
country has developed 100 megawatts of wind-generating capacity, it tends to move
quickly to develop its wind resources. The United States crossed this threshold in
1983. In Denmark, this occurred in 1987. In Germany, it was 1991, followed by
India in 1994 and Spain in 1995.
By the end of 1999, Canada, China, Italy, the Netherlands, Sweden, and the
United Kingdom had crossed this threshold. During 2000, Greece, Ireland, and
Portugal joined the list. And in 2001, it was France and Japan. As of early 2002,
some 16 countries, containing half the world's people, have entered the fast-growth
phase.
Wind energy in the form of electricity and hydrogen can satisfy all the various
energy needs of a modern economy. Abundant, inexhaustible, and cheap, wind
promises to become the foundation of the new energy economy. We can now see the
shape of this new economy emerging as wind turbines replace coal mines, hydrogen
generators replace oil refineries, and fuel cell engines replace internal
combustion engines.
# END #
For more information on the emerging solar/hydrogen economy, see Chapter 5 of
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Eco-Economy Update 2001-5 For Immediate Release January 8, 2002
Copyright Earth Policy Institute 2002
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