US Wind Market Ends 2019 With Record Momentum

The American Wind Energy Association (AWEA) released its Fourth Quarter 2019 Market Report, highlighting a red hot market heading into what will be an even hotter 2020. 

The US wind industry installed 5,476 MW of new wind power capacity in 4Q 2019, bringing the 2019 total to 9,143 MW. This was just below Guidehouse Insights’s forecast of 9,555 MW for the year, included in its recently published report, Global Wind Energy Overview. 

There were 35 new projects in 16 states in 4Q 2019, and they represent an average project size of 156 MW. The US market has larger average project sizes than other countries largely due to its vast open spaces. The top states by capacity were Texas (1,807 MW), Iowa (1,202 MW), South Dakota (506 MW), North Dakota (473 MW), and Illinois (465 MW). 

The 4Q 2019 capacity total tips the total US cumulative capacity of its operational fleet to 105,583 MW. Only China has a larger amount of operational capacity (over 230,380 MW) among all countries globally.

Construction Momentum Into 2020 and Beyond

The number of projects coming online in the near term is remarkable, with 22,115 MW under construction and 22,038 MW in advanced development. These projects represent a project pipeline increase of over 26% over the same time in 2019. This is precisely the wind build boom expected following the tax credit extensions, and it is now expected to increase even more. 

There are now 18 states with over 1,000 MW under construction or in advanced development. Texas hosts 18% of the total development pipeline, followed by Wyoming (11%), Oklahoma (8%), Virginia (6%), and New York (5%). Virginia and New York also include offshore.

Wind Turbine Manufacturers Race for Top Spot

GE Renewable Energy claimed the top spot for turbine manufacturers in 2019, capturing 45% of new installations. Vestas followed with 33% of the market, Siemens Gamesa captured 16%, and Nordex USA represented 6% of installations.

Average turbine capacities continue to increase, with 25% of turbines installed in 2019 rated between 3.1 MW to 3.6 MW. Nearly two-thirds of land-based projects in the pipeline that have reported turbine models are using turbines with a nameplate capacity between 2 MW and 2.9 MW, while 35% have selected turbines rated 3 MW or higher. 

Trend Toward Bigger Onshore Turbines Is Accelerating 

The latest race in the ever-tightening wind turbine market is for onshore wind turbines in the 4 MW range. Until now, this segment has had few offerings and only minor commercial deployments. A recent Guidehouse Insights blog covered the new turbine announcements coming to market. 

Since seeing the first US orders for 4 MW turbines in 3Q 2018, the volume of planned projects using 4 MW or larger machines has increased to 4,258 MW. This volume is up 32% over the third quarter. Five projects (813 MW) are currently planning to use turbines rated 4.8 MW.

GE’s 2.5-127 model was the most popular turbine in 2019, accounting for 23% of total capacity additions. Vestas’s V136-3.6 machine came in second, representing 11% of capacity additions. GE Renewable Energy and Vestas continue to account for most projects under construction or in advanced development that have reported an OEM. GE Renewable Energy currently represents 46% of this market, while Vestas holds 29%.