DOE released its first Annual Report on U.S. Wind Power Installation, Cost, and Performance Trends: 2006 on May 31st, providing an overview of developments and trends in the U.S. wind power market. The report analyzes trends in the marketplace, including wind power prices compared to wholesale electricity prices, project costs, turbine sizes, and developer consolidation. It also describes the increasing performance of wind projects, current ownership and financing structures, and trends among major wind power purchasers.
The report notes that U.S. wind power capacity increased by 27 percent in 2006 and that the United States had the fastest-growing wind power capacity in the world in 2005 and 2006. For the second straight year, the United States led the world by installing 2,454 megawatts of wind power capacity in 2006—16 percent of the capacity installed worldwide that year—followed by Germany, India, Spain, and China. Leading the way in annual growth capacity in the United States are Texas, Washington, and California.

Rube Goldberg would admire the utter purity of the pretensions of wind technology in pursuit of a safer modern world, claiming to be saving the environment while wreaking havoc upon it. But even he might be astonished by the spin of wind industry spokesmen. Consider the comments made by the American Wind Industry Association.s Christina Real de Azua in the wake of the virtual nonperformance of California.s more than 13,000 wind turbines in mitigating the electricity crisis precipitated by last July.s .heat storm.. .You really don.t count on wind energy as capacity,. she said. .It is different from other technologies because it can.t be dispatched.. (84) The press reported her comments solemnly without question, without even a risible chortle. Because they perceive time to be running out on fossil fuels, and the lure of non-polluting wind power is so seductive, otherwise sensible people are promoting it at any cost, without investigating potential negative consequences-- and with no apparent knowledge of even recent environmental history or grid operations.

Eventually, the pedal of wishful thinking and political demagoguery will meet the renitent metal of reality in the form of the Second Law of Thermodynamics (85) and public resistance, as it has in Denmark and Germany. Ironically, support for industrial wind energy because of a desire for reductions in fossil-fueled power and their polluting emissions leads ineluctably to nuclear power, particularly under pressure of relentlessly increasing demand for reliable electricity. Environmentalists who demand dependable power generation at minimum environmental risk should take care about what they wish for, more aware that, with Rube Goldberg machines, the desired outcome is unlikely to be achieved. Subsidies given to industrial wind technology divert resources that could otherwise support effective measures, while uninformed rhetoric on its behalf distracts from the discourse.and political action-- necessary for achieving more enlightened policy.

This report examines the factors underlying the recent increases in electricity prices and the potential impact of these factors on the industry's financial condition. It focuses primarily on cost changes experienced over the past five years and the projected trends in these costs over the next ten years.

In community after community where industrial-scale "wind farms" have been proposed, mundane and sparsely-attended board meetings have been transformed into standing-room-only affairs. Residents and property owners are anxious to know whether rumored plans to construct twenty, fifty or even a hundred of the 400-foot tall wind turbines are "a done deal." Most significantly, the electorate wants to know the extent to which their town has the power to decide whether or not wind farms will dominate their rural landscape. /p