United States Wind Energy Growth and Policy Framework: Preprint

Wind is the fastest growing source for electricity in the United States. During 2001, U.S. wind power plant installations are expected to increase by 1,850 megawatts (MW), resulting in a total installed capacity of about 4,400 MW. The market expansion is supported by a variety of Federal and state incentives in the form of production tax credits, renewable energy production incentives, renewableenergy portfolio standards, and others. New mechanisms include green power offerings, green tags, and government power purchases. Deregulation of the electric power industry is continuing. In some cases this is allowing higher electricity rates that may increase the rate of wind plant development. Power shortages, natural gas price increases, and enforcement of clean air laws are increasinglyimportant wind market drivers in some regions. Continuing research and technology development has reduced wind energy costs dramatically to less than $0.04/kWh for large projects at sites with average wind speeds higher than 7.0 m/s, making wind the least-cost option in some power markets. The recently published National Energy Policy contains recommendations to increase wind energy developmentand improve the power transmission system.