the state of the wind market - renewable choice energy
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Statistics on the wind power market. Renewable Choice Energy is a leading provider of climate change solutions including green power, carbon offsets, and renewable energy advisory services. Recognized as a trusted partner to numerous major brands, Renewable Choice was the recipient of the prestigious Green Power Supplier of the Year award in 2012 from the U.S. Environmental Protection Agency and has been featured in hundreds of media outlets. To learn more, visit www.renewablechoice.com.TRANSCRIPT
State of the Wind Market
A Partner to Leading Brands
Slowdown in Construction in 2010
Sources: AWEA U.S. Wind Industry Annual Market Report - Year Ending 2009; AWEA 4th Quarter 2010 Market Report
• 5,115 MW installed in 2010
• 51% less capacity installed than 2009
• 2009 was a record-setting year with
10,010 MW installed
• Constraints in capital and credit markets
impacting development
• 40,180 MW of total capacity
• Enough to power over 9 million homes
U.S. Energy Infrastructure
Renewables: 2.5% (Biomass: 1.31%; Wind: 0.83%; Solar: 0.01%; Geothermal: 0.35%)Oil: 1.6%; Other fossil fuel: 0.5%
source: EPA eGRID2010 Version 1.1
Installed Capacity by State
Source: AWEA 2010 Market Report
Large scale wind projects are happening across the U.S. as states reach increasing levels of wind production.
U.S. Wind Power Installed Capacity
Source: AWEA 2010 Market Report
Voluntary Purchases are Critical
• Voluntary purchases
of RECs represented
OVER 50% of all wind
sales in 2008
• Voluntary buyers are
making as big or
bigger of an impact
as state-level
requirements
Source: Lawrence Berkeley National Laboratory and National Renewable Energy Laboratory
Voluntary REC Markets are a Major Driver of Green Power Development
• Green Power sales have grown at a compound annual rate of 37% between 2005 and 2009.
• Most of the demand (62% in 2009), and most of the growth, stems from the purchase of unbundled RECs.
Source: National Renewable Energy Laboratory
Financing a Project:The Four Legs of Wind Energy
Tax IncentivesDepreciation
Energy SalesRenewable Energy Credits
Value of RECs to Wind Projects
* Value as a percent of 20 year rate requirement
Source: John Deere Renewables
Voluntary Market
• Most organizations lack the ability to install onsite renewable energy:
– Zoning restrictions
– Lack of natural resources
– Capital limitations
• RECs allow businesses to purchase grid-sourced renewable energy
Renewable Energy Credits
Compliance Voluntary
One Commodity – Two Markets
Compliance vs. Voluntary Markets
• Not all RECs created equal in Compliance Markets– Varying State Requirements
• Technology type, vintage, project start date, etc.
• Compliance Market drivers: Rules & Price– Politically driven, varying interests at stake– RECs often purchased with cost as only driver
• Voluntary Market provides a driver for projects outside compliance states and increases demand for all RECs
"By converting Plant Mitchell to biomass, we hope to not only help grow the renewable resource base in Georgia but also to expand the market for renewable energy credits, which ultimately will foster additional renewable energy development.“
~ Mike Garrett, President and CEO, Georgia Power
Straight From The Developer
“To any developer doing a wind farm in today’s market, renewable energy credits are critical to the revenue stream in taking a project over the top. If we do another one, it certainly will be a critical factor.”
~ Dave Osburn, Oklahoma Municipal Power Authority
“In ten years, Wind will be bigger than oil in Texas.”
~ T. Boone Pickens, Pickens Plan
“Selling of RECs makes the construction of more renewable energy generation plants possible and also makes existing renewable generation more commercially viable.”
~ Tim Swanson, Director of Origination for Florida Power & Light (FPL)
“There isn’t a single renewable facility that goes online in this country where RECs aren’t considered in the core financing.”
~ Steve Maller, John Deere Wind Energy
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