Wind Industry, Riding Tax-Credit Rollercoaster, Reports Year of Growth

U.S. wind energy installations grew more than four-fold in 2014, according to a new report, but the growth was well short of its 2012 peak, and uncertainty over a key industry tax credit is dampening prospects for growth beyond this year.

New onshore wind energy projects added 4,850 megawatts to U.S. power supplies during the year, up from an increase of 1,087 megawatts in 2013, according to a report this week from the American Wind Energy Association, a trade group.  With those additions, the U.S. has 65,879 megawatts of wind power capacity.

The big year-over-year increase in 2014 is partly a function of being compared to 2013, a down year for the industry because many projects weren't started until after Congress belatedly extended a critical tax credit to the end of 2013.  To qualify for the reinstated credit, wind projects had to begin construction in 2013.  That led to a rush to get projects underway before that deadline, and the 2013 construction push, in turn, led to the surge of completed wind projects in 2014, according to the Washington-based industry group.

Texas, already the nation's largest wind energy producer, installed more than 1,800 megawatts of new capacity last year—more than the nationwide total in 2013.  The state will host the majority of the 12,700 megawatts of wind energy under construction at the beginning of 2015, but 21 other states had projects underway, according to trade group's report.

"Wind is gaining strength, but as recent history shows, we can do a whole lot more," said Tom Kiernan, AWEA's chief executive officer.

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