U.S. Wind Industry Market Update Husum Wind Energy 23/9/10 Husum, Germany

Amna Khan Deputy Director, Core Member Services

American Wind Energy Association

Trade association for the wind energy industry founded in 1974

Over 2,400 business members www.awea.org

• Develops policies and conducts analysis to support wind industry growth • Executes wind industry’s legislative agenda • Promotes wind energy through advocacy, advertising and media relations • Convenes conferences and workshops to educate the public and bring industry members together

AWEA’s Regional Partners

Source: AWEA U.S. Wind Industry Annual Market Report

Market & Policy Update

U.S. Annual and Quarterly Wind Installation

 700 MW installed in 2Q10, for a total of at least 1,239 MW for the first half of 2010.  Total utility-scale wind capacity installed in the U.S. through the first half of 2010 is 36,303 MW  Installations in the first half of 2010 are down 71% and 57% from 2008 and 2009 first half levels respectively.

Source: AWEA

4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

Wind Installations by Quarter

Wind Installations by Quarter Source: AWEA

Wind as Choice for New Generation

Source: AWEA, SEIA, SNL, LBL, EIA 1H 2010 – estimate, final data at year end

Installed Capacity by State

Source: AWEA Second Quarter 2010 Report

Wind Installations by Half

 Installations in the first half of 2010 are down 71% and 57% from 2008 and 2009 first half levels respectively, and are more in-line with 2007 installations.

6,000 5,000 4,000 3,000 2,000 1,000 0 2007 2008 First Half 2009 Second Half 2010 Source: AWEA

10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

Projects Under Construction

> 5,500 MW under construction at end of 2Q 2010 1H07 2H07 1H08 2H08 installed 1H09 2H09 under construction 1H10 Source: AWEA Second Quarter 2010 Report

NextEra Energy Resources continues to lead ownership of wind assets in the U.S., with over 7,400 of the over 35,000 MW installed. Eight other companies now own over 1,000 MW of wind power assets, up from five last year. The top five companies own about 49% of the total U.S. fleet, down from 53% last year.

Manufacturers’ Share of 2009 Installations in U.S.

Source: AWEA U.S. Wind Industry Annual Market Report, 2009

Manufacturers of Installed Turbines Diversifying Over Time Source: AWEA, U.S. Wind Industry Annual Report, Year Ending 2009

Source: AWEA U.S. Wind Industry Annual Market Report, 2009

At the end of 2009, wind industry employment remained steady with 85,000 Americans employed directly and indirectly by the wind industry. Compared to 2008, the construction sector employed an additional 500 workers in 2009 due to increased installation of new wind turbines. Operations and management jobs also grew by 1,000 over the previous year.

However, due to many turbines on the market in 2008 and the credit crisis, 1,500 manufacturing jobs were lost in 2009.

Wind Manufacturing Activity

 2 new manufacturing facilities were brought online in the first half of 2010, as compared to 5 facilities brought online in first half 2009 and 7 facilities brought online in first half 2008. New announcements are at similar levels.

10 8 6 4 2 0 1H2007 2H2007 1H2008 2H2008 1H2009 2H2009 1H2010 New Online Manufacturing Facilities Source: AWEA

Efforts on Manufacturing

 June 2010: AWEA, BlueGreen Alliance, and United Steelworkers released a blueprint for expanding domestic manufacturing

Forward Look for 2010

 Low wind installations in through 2Q put the annual expectations for 2010 in line with 2007 levels.

 Even with over 5,500 MW under construction and a more active second half of year in store, AWEA expects that 2010 installations will likely be 25% to 45% below 2009 installations, depending on policy developments.  Much of the near-term activity is now concentrated in the Midwest, Northwest, and Intermountain regions. Source: AWEA

Wind Projects Waiting in Queues

Close to 300,000 MW of proposed wind projects are in interconnection queues.

Source: AWEA, U.S. Wind Industry Annual Market Report, 2009

New Transmission Lines Proposed Source: AWEA, U.S. Wind Industry Annual Report, Year Ending 2009

Proposed & Planned U.S. Offshore Projects

Available AWEA Products on Wind Market

Near-term Policy Agenda

 National Renewable Electricity Standard (RES)  Extension of American Reinvestment & Recovery Act (Stimulus bill)1603 Treasury Grant program under construction deadline  Expansion of Manufacturing Tax Credit (48C)

The 1603 Grant Has Kept Project Financing Afloat

6,000 MW 4,000 MW 2,000 MW Cash Grant MW Without Grant 0 MW 1H 09

1603 Grant has supported 87% of 2010 Projects

2H 09 1H 10

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ARRA: Tax Provisions Section 48C Program The Recovery Act included a 30% investment tax credit for new investments in clean energy manufacturing.



In early 2010, the Treasury announced recipients of the $2.3 billion manufacturing tax credit program.

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Over 50 wind related manufacturing facilities received the tax credit, receiving approximately 16% of the funding.

Sample of Recipients

Alstom Inc.and Subsidiaries Brevini Wind USA, Inc.

Cardinal Fastener & Specialty Co Enertech, Inc.

Hexcel Corporation Ingeteam Inc.

Kaydon Martifer-Hirschfeld Energy Systems LLC Mistubishi Power Systems Americas, Inc.

Nordex USA Inc Nordic Windpower Roller Bearing Co. of America, Inc.

Schuff Steel Company Siemens Industry, Inc.

Tindall Corporation TPI Composites, Inc.

Vela Gear Systems, Inc.

Wausaukee Composites, Inc.

Winergy Drive Systems Corp.

Questions?

Ms. Amna Khan Deputy Director, Core Member Services American Wind Energy Association 1501 M Street, NW Suite 1000 Washington, DC 20005 [email protected] 202.383.2523