Energy legislation needs stronger near-term targets to build up domestic manufacturing base, keep U.S. in lead, say wind industry leaders
WASHINGTON, D.C. — This morning,
members of America’s wind power industry laid out a compelling case to
strengthen the proposed Congressional renewable electricity standard
(RES) in order to protect American jobs and maintain America’s
leadership status in the increasingly competitive global wind power
industry.
Testifying before the Senate Environment and Public Works Committee, G.E. Vice Chair and Energy Infrastructure President and CEO John Krenicki called for any federal RES passed this year to be significantly stronger than proposals now on the table.
Legislation passed by the House and a Senate committee last month,
Krenicki said, fall far short of what is needed and would have
“disastrous” consequences for the domestic wind industry in the near
term. Current proposals, due to carve-outs in definitions and
calculations of the standard, do not drive new renewable energy
deployment in the near term.
“While
the U.S. struggles to determine the future of clean energy, other
countries around the world are setting aggressive near-term and
long-term standards and incentives to create large domestic markets for
renewable energy,” Krenicki said. “Both the RES
passed by the House of Representatives and the RES approved by the
Senate Energy and Natural Resources Committee last month are far too
weak to drive growth. The current RES proposals for 2012 – anywhere
from 3 to 6 percent of total U.S. electricity generation – are
essentially equal to or below the status quo.”
“Massive
new investments in manufacturing will not be made in the U.S. today
based on the hope of a strong carbon price signal 10 years from now,”
explained Krenicki. “It would take a 12% renewable
electricity standard by 2012, with reasonable percentages to be
satisfied by energy efficiency measures, to enable U.S. wind
deployments to continue on the current growth trajectory,” Krenicki said.
“Such a standard would also help drive dollars to small companies and
developers waiting for stimulus checks to begin rolling out, and help
sustain a domestic industry that cannot wait for longer term carbon
legislation to come into effect.”
The Senate is currently holding hearings on climate and energy
legislation and is expected to mark up legislation in September. The
House passed its version of the bill, the American Clean Energy and
Security Act, late last month. Leading voices in the wind industry
echoed Krenicki’s call for more robust U.S. policy to support renewable
energy.
“The U.S. wind
industry is on the cusp of either expanding upon the rapid gains made
in recent years or giving up those gains to foreign competitors, and
national energy policy – namely, a strong RES – will make the
difference,” said Denise Bode, CEO of the American Wind Energy Association (AWEA).
“Unfortunately, the current RES proposals do not seize the historic
opportunity we have today to build up the nation’s manufacturing base
and revitalize our economy.”
AWEA last week released its annual “20% Wind Report Card,” which showed
that while wind accounted for 40% of the nation’s new energy generating
capacity in 2008, wind farm development in 2009 is expected to slow as
a result of the economic downturn, leading to a drop in wind turbine
and wind turbine component orders. Meanwhile, strong RES targets have
the ability to produce hundreds of thousands of jobs in the near and
long term, according to a recent study by the Blue-Green Alliance. The
U.S. wind power industry added or expanded more than 70 manufacturing
facilities in the past two years (2007-2008), including over 55 in 2008
alone, according to AWEA.
“We
are at an extraordinary point in the U.S. wind energy industry today,
with the U.S. having pulled into #1 position last year and invested in
a record number of manufacturing facilities,” said Sampson A. Brown, President/CEO of Knight & Carver Wind Group,
a blade manufacturing and repair company with facilities in California
and South Dakota. “Congress needs to lock in the industry’s momentum
with a strong RES. Now is the time for decisive action – not only for
our company and our industry, but for the nation’s energy future.”
Both Europe and China have publicly committed to strong renewable
energy policies in the near term. The EU’s Renewable Energy Directive
commits member nations to an average of 25% renewables between 2011 and
2012. China has doubled its wind power capacity in each of the last
four years, and expects to have 30,000 megawatts of wind installed by
the end of 2010 – 10 years ahead of a target set last year. The U.S.
currently has over 28,000 megawatts of wind power capacity.
“A strong RES is a pro-jobs policy that we can’t afford to pass up,” said Parthiv Amin, President of Winergy,
a company based in Illinois that manufactures gearboxes for wind
turbines. “A robust RES would send a clear signal in the US market, and
would unleash a wave of investment and job creation in our domestic
manufacturing base.”
Source: American Wind Energy Association (AWEA)
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About the American Wind Energy Association (AWEA):
AWEA
is the national trade association of America’s wind industry, with more
than 1,900 member companies, including global leaders in wind power and
energy development, wind turbine manufacturing, component and service
suppliers, and the world’s largest wind power trade show. AWEA is the
voice of wind energy in the U.S., promoting renewable energy to power a
cleaner, stronger America. Look up information on wind energy at the AWEA Web site. Find insight on industry issues at AWEA’s blog Into the Wind. Join AWEA on Facebook. Follow AWEA on Twitter.