Wind Energy Continues to Grow, Competitive Markets Continue to Lead

The recent American Wind Energy Association (AWEA) Year End 2009 Market Report showed that the U.S. wind industry set new records for installed wind capacity by adding nearly 10,000 megawatts of new capacity in 2009. Again, as in past years, competitive markets are leading the way in developing this clean and renewable energy resource.

The report underscores wind’s contribution to our national energy portfolio, and the role competitive markets have played in spurring new capacity. America now enjoys 35,000 megawatts of installed wind power generation, nearly 2 percent of our total national energy capacity. Four of the top 10 (and two of the top three) highest-volume states in installed capacity are competitive markets. In addition, the total combined installed capacity of the 17 competitive markets states is 16,500 megawatts - nearly half of the nation’s total installed capacity.

It’s no secret that wind energy is booming in competitive markets – a point noticed by multiple observers including Federal Energy Regulatory Commission Chairman Jon Wellinghoff. In the past decade, nearly three times as much wind energy has been produced in competitive markets as in government-regulated monopoly markets.

A key secret to this success is the power of organized markets. As we’ve seen across regional transmission systems, real-time pricing helps resolve this issue because well-functioning hour-ahead and day-ahead markets provide the flexibility to address the variable output inherent with renewable generation – wind in particular. In fact, the 2009 State of the Markets Report by the ISO/RTO Council found that organized competitive markets were “shattering barriers” for renewable power generation.

We’re glad to see wind energy growing to help meet our nation’s energy needs – and see greater potential for the future, noted by a recent National Renewable Energy Laboratory study that found wind energy can generate 20 percent of the Eastern United States’ total demand by 2024. As we move to mitigate the impacts of climate change, wind must be a part of the answer. We urge national policymakers to continue allowing electricity markets to evolve and meet 21^st century challenges.