The U.S. wind industry broke all previous records by installing nearly 10,000 megawatts (MW) of new generating capacity in 2009 (enough to serve over 2.4 million homes), but still lags in manufacturing, the American Wind Energy Association (AWEA) said today in its Q4 report. These new projects place wind power neck and neck with natural gas ¹ as the leading source of new electricity generation for the country. Together, the two sources account for about 80% of the new capacity added in the country last year. "The U.S. wind energy industry shattered all installation records in 2009, chalking up the Recovery Act as a historic success in creating jobs, avoiding carbon, and protecting consumers," said AWEA CEO Denise Bode. "But U.S. wind turbine manufacturing - the canary in the mine -- is down compared to last year's levels, and needs long-term policy certainty and market pull in order to grow. We need to set hard targets, in the form of a national Renewable Electricity Standard (RES), in order to provide the necessary stability for manufacturers to expand their U.S. operations and to seize the historic opportunity we have today to build up a thriving renewable energy industry."

At an event today in Columbus, Indiana, United States Secretary Chu announced the selection of nine projects totaling more than $187 million to improve fuel efficiency for heavy-duty trucks and passenger vehicles. The funding includes more than $100 million from the American Recovery and Reinvestment Act, and with a private cost share of 50 percent, will support nearly $375 million in total research, development and demonstration projects across the country. The nine winners have stated their projects will create over 500 jobs, primarily researchers, engineers, and managers who will develop these new technologies. By 2015, the projects expect to create over 6,000 jobs - many in manufacturing and assembly. Currently, the transportation sector accounts for 28 percent of total U.S. energy use. As these vehicle technologies are adopted broadly across the country, they could save more than 100 million gallons of gasoline and diesel per day, and reduce carbon emissions from on-road vehicles by 20 percent by 2030.

"By investing Recovery dollars in next generation fuel efficient trucks here at home, we're not only creating new job opportunities now, but helping lay a new foundation to keep American auto manufacturers competitive in the 21st century global marketplace," said Vice President Biden. "Through strategic public-private investments like these, the Recovery Act is helping lay the groundwork for an expansion of our clean energy economy."

In order to foster investment and job creation in clean energy manufacturing, the American Recovery and Reinvestment Act included a tax credit for investments in manufacturing facilities for clean energy technologies. The Section 48C program will provide a 30 percent tax credit for investments in 183 manufacturing facilities for clean energy products across 43 states. This tax credit program will help build a robust high technology, US manufacturing capacity to supply clean energy projects with US made parts and equipment. These manufacturing facilities should also support significant growth in US exports of US manufactured clean energy products. The $2.3 billion in tax credits is being allocated on a competitive basis. Projects are assessed based on the following criteria,: commercial viability, domestic job creation, technological innovation, speed to project completion, and potential for reducing air pollution and greenhouse gas emissions. The Department of Energy also considered additional factors including diversity of geography, technology and project size, and regional economic development. The program is currently capped at $2.3 billion in tax credits and was oversubscribed by a ratio of more than 3 to 1, reflecting a deep pipeline of high quality clean energy manufacturing opportunities in the U.S. These tax credits for clean energy manufacturing will help rebuild domestic manufacturing and bring private capital off the sidelines.

Source: U.S. Department of Energy

Reflecting on a year that opened with high expectations for renewable energy policies from the new Obama Administration and was buffeted by financial and economic storms, AWEA today identified the wind industry's top accomplishments and developments in 2009. "Wind power is a symbol of hope in our economy and supports thousands of jobs, but U.S. wind turbine manufacturing is lagging at the very time that the global clean energy race is heating up," said AWEA CEO Denise Bode. "One of the most urgent measures that our government can enact is a national Renewable Electricity Standard, which will unleash in the U.S. a wave of manufacturing investment that will otherwise go overseas. Many companies are eager to enter or ramp up their activities in this sector, as this year's highlights show, but all need to see a long-term commitment with hard targets to renewable energy in order to be able to invest."

After a difficult year in 2008, the U.S. solar industry seems to have experienced a new boom in 2009. The prospects for 2010 remain uncertain, however. An example is the California contracting firm Borrego Solar Systems. In 2009 it doubled its revenue compared to 2008. This result, although very good, did not meet Borrego's own expectations. The enthusiasm in the solar market was so high that it expected a threefold increase in revenues. These expectations were similar among Borrego's competitors. An important tax credit for solar had been extended, public support was high and Obama was seen as a pro-green president. Then the crisis hit the solar industry, although by far not as badly as it did with other industries. At the moment, the solar industry feels confident again. Tax credits are expected both from the federal and state governments. "I really see the conversion of many different factors that give us reason to have much more optimism. With good foundation", said G. Robert Powell, president and CEO of Solar Power Partners, an independent power producer in California.

Source: Renewable Energy World