The wind industry-related exchange traded fund has taken off as the U.S. starts switching over more to alternative energy sources.
Additionally, utility-scale wind farm capacity rose to 13.1 gigawatts in 2012, or a 90% increase year-over-year, with $25 billion invested, according to the DOE.
“Key factors driving the record growth included the then-planned expiration of federal tax incentives at the end of 2012, improvements in the cost and performance of wind power technology, and continued state policies supporting wind energy,” the DOE said.
The cost of installing wind turbines is also going down as the U.S. relies less on imports and more on domestic producers.
The DOE found that “focusing on selected trade categories, and when presented as a fraction of total equipment-related wind turbine costs, the overall import fraction is estimated to have declined considerably, from 75% in 2006–2007 to 28% in 2012.”
Wind power was the largest source of U.S. electric-generating capacity additions for 2012, accounting for 43% of new capacity last year.
The U.S. also narrowly regained the lead for annual wind power capacity, overtaking China.
Looking ahead, the industry will need ot accelerate construction activity to meet annual capacity outlook.
The DOE believes that capacity in 2014 “is expected to be strong as developers commission projects that began construction in 2013.”
“The one-year extension of the federal PTC and its new start construction language are expected to create a 2 to 3 year window for additional utility-scale wind project development,” the DOE said. “The USDA’s fiscal year 2014 budget proposes increased levels of mandatory funding for loan guarantees and grants over 2012 levels for the REAP (USDA 2012), which will continue to support the development of distributed wind projects in the rural and farm markets.”
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Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.