Texas Blows Past Other States as the Leader in Wind Power
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As more and more companies and investors explore the power of harnessing wind,
which is the conversion of the flow of air and other atmospheric gases into
the use of energy, wind power is used primarily in the generation of
electricity and is becoming one of the most readily used alternative
resources to date.
Known as wind farms, large-scale turbines, usually attached to local power
stations, harness the forces of nature into viable, usable energy. As a clean,
renewable resource, wind energy has become one of the leading resources
favored by environmentalists as an alternative to fossil fuels, as wind can
be widely distributed and produces less greenhouse gases.
In a report released by the American Wind Energy Association, the agency
confirmed that Texas remains the leading producer of wind energy throughout
the nation, generating some 7,118 megawatts (MW). Second on the list was
Iowa, which surpassed California as the next state in overall production of
wind energy. Iowa recently produced more than 2,791MW, just ahead of
California's total of 2,517MW.
Although total figures were not released, Minnesota has been steadily
increasing their production of wind power. Both Minnesota and Iowa attribute
more than 7% of their states' total energy production to electricity
generated from wind turbines.
The wind farm industry can be traced back to 1979, when Danish manufacturers
constructed windmills that would generate between 20 and 20 kilowatts each.
Today's industry is much larger in comparison, with a projected capacity of
producing wind power energy to reach 160 gigawatts by 2010.
Over the past several decades or so, alternative energy has seen an influx in
capital from the government and investors alike. Moreover, states have begun
to entice wind energy companies into their regions in order to help with the
nation's unemployment problem. In 2008, job creation within the industry
increased more than 70%, adding some 85,000 jobs nationwide.
During the current recession, there has been a slight drop in investments
within the wind industry. During the 1st quarter of 2009, more than half the
totals of global investments were cut, leaving billions of dollars out of the
alternative sector.
However, in order to fuel further expansion within the industry, the passing
of the national Renewable Electricity Standard is vital to long-term growth.
The program outlines that utility companies will be required to generate at
least 25% of their electricity produced form renewable sources, such as wind,
by 2025.
However, with the recent price of crude hitting then falling from record
highs, the price to produce wind energy is now one-fifth the cost it was back
in the 1980s. Within the U.S., the price to produce wind energy was estimated
to be $55 per megawatt hour.
With the industry beginning to take a stronger hold within our nation, the use
of wind-produced energy increased in 2008 to 1% of all energy used, which
equated to powering more than 4.5 million homes nationwide.
At the conclusion of 2008, wind farms throughout the U.S. amassed a total
capacity of 25,300MW by the end of the year, with 2009 projections in
producing reaching as high a 73 billion kilowatts. With that kind of
production, that should be enough energy to power more than 7 million homes,
according to the American Wind Energy Association.
The association also released their finding that during the past year, there
were 10 new manufacturing facilities started. In addition to the new on-line
facilities, there were 17 plants that were expanded, while more than 30 new
plants were announced to break ground some time over the next few years.
Looking inside the industry, one of the leading publicly traded companies is
FPL Group Inc. (FPL), with its subsidiary company NextEra Energy Resources,
continues to dominate the U.S. wind industry, owning nearly 25% of all
projects with total production reaching upwards of 6,300MW.
Accounting for another 25% of the industry, companies such as MidAmerican
Energy, Iberdrola Renewables, and Horizon-Energia de Portugal participate in
the alternative energy sector.
Companies participating in the production and installation of wind turbines,
General Electric (GE) Energy is the leader of the industry, accounting for
more than 43% of new capacity, while Vestas Wind Systems accounts for 13% of
the industry's business. Lastly, Siemens AG (SI) and Suzlon Energy partake in
9% of the business, as Gamesa Corp. represents 7% of the overall market share.
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