Wind Energy
Wind Energy azs2By this point in the course, you have been told repeatedly that our energy and electric power systems are dominated by fossil fuels. And this is true. But you may be surprised to know that in the United States and many other countries, wind is among the fastest-growing sources of new power plant investment, as measured by megawatts of new capacity. In several areas, including Texas and the Mid-Atlantic (where a boom in fossil fuel production is currently underway), wind power is the largest source of new electrical generation capacity, making up a majority of new plants. That’s right – in oily Texas, more than 50% of new electrical generation in recent years has been from wind. In fact, Texas is the US leader in wind energy generation – much more than even California, which has somewhat greener political leanings.
In this section of the course, we’ll take a look at what’s going on in all those tall towers sprouting up along ridgetops and plains – and out in the middle of the ocean, in some places. Humans have been harnessing the wind to do useful work in one fashion or another for many thousands of years – the first “wind energy” systems were actually sailboats. Humans have also been smart enough to realize that wind is a very useful cooling mechanism on hot days. So in some sense, the windows in our houses are a form of wind energy. Windmills (the precursor to today’s wind turbines) appear to have first been used in Greece around two thousand years ago.
How Wind Turbines Work
How Wind Turbines Work azs2In a conventional power plant (fueled by coal or natural gas), combustion heats water to steam and the steam pressure is used to spin the blades of a turbine. The turbine is then connected to a generator, which is a giant coil of wire turning in a magnetic field. This action induces electric current to flow in the wire. The workings of a wind turbine are much different, except that instead of using a fossil fuel heat to boil water and generate steam, the wind is used to directly spin the turbine blades to get the generator turning and to get electricity produced.
The inner workings of a wind turbine consist of three basic parts, seen in the figure below. The tower is the tall pole on which the wind turbine sits. The nacelle is the box at the top of the tower that contains the important mechanical pieces – the gearbox and generator. The blades are what actually capture the power of the wind and get the gears turning, delivering power to the generator. The direction that the blades are facing can be rotated so that the turbine always faces into the wind, and the pitch of the blades (the angle at which the blades face into the wind) can also be adjusted. Pitch control is important, especially in very windy conditions, to keep the gearbox from getting overloaded.

The amount of power (in Watts) collected by a wind turbine is explained in the following equations:
The Kinetic Energy (KE) of the wind is:
Where m = mass, and v = velocity of wind.
Power (P) in the wind is the KE per unit time, so we replace the mass(m) with the mass flux rate dm/dt:
Where p = air density, and A = swept area of blades.
So the wind Power(P) is:
If the wind turbine collected all of this power, the wind would have to stop and the blades would stop spinning. If you want the blades to keep spinning, it turns out that you can collect about 60% of the power (called the Betz limit).
So, collectible Power(P) is:
How much power could we get with a turbine whose blades are 100m long, with a wind speed of 10m/s (about 22mpg>, with an air density of 1.2kg/m2?
This is clearly a lot of power! But, mechanical inefficiencies related to the gears and the generator mean that we might only get 30% of this figure, but that is still a lot of power from one turbine.
All wind turbines have a minimum wind speed that differs depending on the size but is typically about 4-5 m/s (10 mph) and maximum wind speed above which they shut down to avoid damage, usually around 20-25 m/s (about 50 mph). Most wind turbines have a maximum spinning rate, reached a bit above the minimum velocity, and when the wind speeds up, the pitch of the blades is adjusted so that the rate of spinning remains more or less constant. The figure below shows a typical "power curve" for a small wind turbine.

This figure shows the power curve for a 1.5 megawatt wind turbine. So on the Y-axis is the power and the X-axis is the wind speed in miles per hour. And what you can see is that there is sort of a threshold speed that is something like 6 miles per hour wind speed you start to get some power. And as the wind speed increases, the power output rises rapidly until you get to about 30 miles per hour. At that point the power sort of saturates and flattens out and with more wind you don’t get any more power. So it reaches its capacity at 1.5 megawatts and it generates that up until 50 miles per hour and above that the power drops off rapidly because the wind turbine has a shut off mechanism will turn off if the wind gets going to fast because of the turbulence that can cause damage to the wind turbine. So they just shut down if the winds get to great.
The wind, as you may have noticed, is highly variable in any given place, but as a general rule, it is stronger and steadier as you rise up above the ground. This is because friction between the wind and the land surface slows the wind. But there is also a lot of regional variation in the wind velocity. Both of these factors (elevation above the ground and location) can be seen in the maps below, showing the average wind speed in the US at two different heights.

These two maps of the United States show the average annual wind speed at two different heights above the surface. The upper map shows the wind speed at 30 meters height and the one below shows it at about a hundred meters. You can see a couple thing right away. One is that there is just a lot more wind at greater velocities at this higher elevation above the lands surface. You get to 100 meters and there are a lot of places in the central part of the US where you get wind speed from 8 to 10 meters per second, which is really moving along quit fast. And you also see this lower map of 100 meter of wind speeds of the offshore regions everywhere on the west coast and the east coast and around the Gulf of Mexico there are very high wind speeds. Also the Great Lakes are like this. The primary reasons these offshore regions have such high wind speeds and also why higher up you have such wind speeds are because there are less friction in those settings. So you go higher up from the surface there is less friction from the air and all the trees and the roughness of the land surface. That roughness slows the wind down and as you rise above that to 100 meters you get away from that disturbance and have higher wind velocities. You can also see that in the mid-continent region, both the 30 meter and the 100 meter heights, that’s the area with the greatest wind potential. You have these annual average wind speeds that are quit high and this is primarily because this is flat part of the country. There are not a whole lot of topography in those areas so the winds can really get going and be maintained. They do not encounter mountains and valleys and the sort of complexity that you see in other areas where further out west the wind speeds are not that high. So you can look at this and see right away that if you wanted to develop wind power, the best places are in the middle of the continent and at a high elevation 100 meters above the surface. That is why you see so many tall wind turbines to get up that high.

These two maps of the United States show the average annual wind speed at two different heights above the surface. The upper map shows the wind speed at 30 meters height, and the one below shows it at about a hundred meters. You can see a couple thing right away. One is that there is just a lot more wind at greater velocities at this higher elevation above the land's surface. You get to 100 meters and there are a lot of places in the central part of the US where you get wind speed from 8 to 10 meters per second, which is really moving along quite fast. And you also see this lower map of 100 meter of wind speeds of the offshore regions everywhere on the west coast and the east coast and around the Gulf of Mexico there are very high wind speeds. Also, the Great Lakes are like this. The primary reasons these offshore regions have such high wind speeds and also why higher up you have such wind speeds are because there are less friction in those settings. So you go higher up from the surface, there is less friction from the air and all the trees and the roughness of the land surface. That roughness slows the wind down and as you rise above that to 100 meters you get away from that disturbance and have higher wind velocities. You can also see that in the mid-continent region, both the 30 meter and the 100-meter heights, that’s the area with the greatest wind potential. You have these annual average wind speeds that are quite high, and this is primarily because this is a flat part of the country. There are not a whole lot of topography in those areas, so the winds can really get going and be maintained. They do not encounter mountains and valleys and the sort of complexity that you see in other areas, where further out west the wind speeds are not that high. So you can look at this and see right away that if you wanted to develop wind power, the best places are in the middle of the continent and at a high elevation 100 meters above the surface. That is why you see so many tall wind turbines to get up that high.
The graphs above show annual average wind speeds in the US at 2 different heights above the ground surface. For reference, 10 m/s is 22.3 mph. You can see that the wind speeds at 100 m are far greater than at 30 m — this is the friction effect of the land surface (which is minimal above large water bodies). As you can see, the Great Plains have great wind potential, as do the Great Lakes and offshore areas on both coasts.
The area covered by the turbine’s blades is another important factor in determining power output. While wind turbines are available in a wide variety of capacities, from a few kilowatts to many thousands of kilowatts, it’s the larger turbine sizes that are being deployed most rapidly in wind farms. Several years ago the image on the right side of the figure below of a Boeing 747 superimposed on a wind turbine gave an astonishing representation of the scale of the state-of-the-art wind technology. Now, turbine rotor diameters are approaching the size of the Washington Monument!

The image is a graph that illustrates the progression of rotor diameters of wind turbines over time, comparing them to the wing span of an Airbus A380.
- The x-axis represents the years from 1985 to 2010 and beyond, with specific years marked: '85, '87, '90, '91, '93, '95, '97, '99, '01, '03, '05, '10, and an estimated future point labeled as "1ˢᵗ year of operation" with a capacity range of 8 to 10 MW.
- The y-axis represents the rotor diameter in meters (m), ranging from 15 meters to 250 meters.
- The graph shows a series of circles, each representing the rotor diameter of wind turbines at different points in time. These circles increase in size as the timeline progresses, indicating the growth in rotor diameter over the years.
- Each circle is labeled with its corresponding rotor diameter:
- 1985: 15 m
- 1987: 30 m
- 1990: 40 m
- 1991: 50 m
- 1993: 60 m
- 1995: 70 m
- 1997: 80 m
- 1999: 90 m
- 2001: 100 m
- 2003: 110 m
- 2005: 120 m
- 2010: 130 m
- Future (8-10 MW): 250 m
- A red line runs through the centers of these circles, showing the trend of increasing rotor diameter over time.
- On the right side of the graph, there is an illustration of an Airbus A380 with a wing span of 80 meters for comparison. An arrow points from the Airbus A380 to the largest circle (250 m), suggesting a comparison between the wing span of the airplane and the rotor diameter of future wind turbines.
- The background of the graph is light blue, and the circles are shaded in orange with red outlines.
This graph visually demonstrates the significant increase in wind turbine rotor diameters over the years, projecting into the future with much larger sizes compared to current standards.
Activate Your Learning
Given that the area of wind captured by the turbine is proportional to the square of the radius (essentially the length of the blade), if you were to double the length of a wind turbine's blade, how much more power would that turbine generate? Assume that wind speed and all other variables remain the same.
Market Deployment of Wind Energy
Market Deployment of Wind Energy azs2Over the last 20 years, growth in the total installed capacity of wind energy generation across the globe has been growing rapidly. Germany was the first country to lead the development of wind power, but the US and China have dominated the growth since 2010. China is especially impressive in terms of its recent growth.

The image is a line graph titled "Cumulative installed wind energy capacity, gigawatts," which shows the growth in installed wind energy capacity from 1997 to 2016 for several countries. The y-axis represents the capacity in gigawatts (GW), ranging from 0 to 140 GW. The x-axis represents the years from 1997 to 2016.
- China (green line) shows the most significant growth, starting from near 0 GW in 1997 and rising sharply to over 140 GW by 2016.
- United States (red line) starts with a low capacity in 1997 but increases steadily, reaching around 80 GW by 2016.
- Germany (blue line) also shows steady growth, starting from a low base and reaching approximately 45 GW by 2016.
- Spain (orange line) has a moderate increase, peaking at around 25 GW.
- India (purple line) starts from almost 0 GW and grows to about 30 GW by 2016.
- United Kingdom (light blue line), France (dark blue line), and Italy (yellow line) all show growth, but at a slower pace compared to the top countries, with capacities below 20 GW by 2016.
The graph is sourced from the BP Statistical Review of Global Energy and is provided by Our World in Data. Each country's line is color-coded for easy differentiation, with a legend on the right side of the graph identifying each color with its respective country. The overall trend indicates a global increase in wind energy capacity over the years, with China leading significantly.
Part of the reason for this growth is the steady decline in the cost of wind energy, as discussed in the previous section on solar energy. But government policies are another important factor. The United States has one of the most volatile markets for wind energy in the world, while those in Europe and China have been among the most stable. This is due in part to differences in how governments in these countries treat wind energy. In many parts of Europe, wind energy (and other renewable generation technologies) enjoy subsidies and incentives known as feed-in tariffs. The feed-in tariff is essentially a long-term guarantee of the ability to sell output from a specific power generation resource to the grid at a specified price (typically higher than the prices received in the market by other generation resources). The United States, on the other hand, has favored a system of tax incentives called the “Production Tax Credit” (PTC) to encourage renewable energy deployment. In theory, a tax incentive should not work much differently than a feed-in tariff (both are just payments based on how many kilowatt-hours are generated). But the PTC has historically needed to be re-authorized frequently by the US Congress – this “on-off” policy strategy has been a major factor in the volatility of wind energy investment in the US as shown in the figure below. It is worth noting that the PTC was recently renewed for 2013, but will lapse again at the end of 2019, so it is difficult to say what impact it will have on wind investment going forward.

The image is a bar graph titled "Annual U.S. Wind Power Installation," which shows the amount of wind power installed in the United States each year from 1998 to 2018, measured in megawatts (MW).
- The y-axis represents the installed wind power capacity in MW, ranging from 0 to 14,000 MW.
- The x-axis represents the years from 1998 to 2018.
Key points from the graph:
- From 1998 to 2004, the installation of wind power was relatively low, with figures below 2000 MW each year. There is a notable annotation "PTC lapse" pointing to the years 1999, 2000, 2001, and 2003, indicating periods where the Production Tax Credit (PTC) lapsed, leading to lower installations.
- Starting in 2005, there is a noticeable increase, with installations generally above 2000 MW, peaking around 2008-2009 with over 10,000 MW.
- Another significant peak occurs in 2012, reaching over 12,000 MW, followed by a sharp decline in 2013, again marked with a "PTC lapse" annotation.
- From 2014 to 2018, the installations fluctuate but remain relatively high, with values generally between 6,000 MW and 8,000 MW, except for another peak in 2015.
The bars are colored in shades of red, with darker shades representing higher values. The graph visually represents the impact of the PTC lapses on the annual installation of wind power, showing significant drops in those years.
The above clarifies that government policies are important to the growth of renewable energy production (both wind and solar). In a very real way, you can think about these policies (feed-in tariffs or tax credits) as a form of investment. Governments can also provide investments in the form of funding for basic research related to these technologies. In general, these investments do not add up to a huge amount when seen in the context of a country's gross domestic product (GDP), which is a measure of the size of the economy, as seen in the figure below.

The image is a horizontal bar chart titled "Renewable Energy Investment (% of GDP), 2015," which shows the percentage of each nation's gross domestic product (GDP) invested in renewable energy in 2015. The data source is Bloomberg New Energy Finance and the World Bank, provided by Our World in Data.
- Chile has the highest investment at 1.4% of GDP.
- South Africa also invests 1.4% of its GDP in renewable energy.
- China follows with 0.9% of GDP.
- Japan, UK, and India each invest 0.8% of their GDP.
- Brazil invests 0.4% of its GDP.
- Germany and Mexico both invest 0.3% of their GDP.
- United States has the lowest investment at 0.2% of GDP.
The bars are colored in shades of blue, with the length of each bar corresponding to the percentage of GDP invested in renewable energy. The percentages are labeled at the end of each bar for clarity. The chart visually emphasizes the variation in investment levels across different countries.
The Potential Wind Energy Resource
The Potential Wind Energy Resource azs2A quick look at an annually-averaged wind map of the world (below) shows the regions of the world that are best suited for the production of wind energy in colors ranging from yellows to red (where the average winds are at least 9.75 m/s or 20 mph). The offshore regions are clearly the best in terms of the energy potential, but not all of these offshore regions are close to where people live. Even for onshore portions of the world, the wind energy potential does not always coincide with where the people are concentrated. This points to the necessity of new transmission lines to deliver this wind energy to major population centers.

So, just how much energy could be produced by the wind? In 2009, a group of scientists makes some calculations to estimate the potential for the world and the US, using wind data and some assumptions about the size and spacing of the turbines. They assumed 2.5 MW turbines on land, and 3.5 MW turbines offshore, which were big for that time. They assumed that you could only place the turbines in unforested, ice-free, nonmountainous areas away from any towns and that the turbines had to be spaced by several hundred meters so they do not interfere with their neighbors. They further assumed that each turbine generated just 20% of its rated capacity to account for mechanical problems and intermittent winds. What they came up with is summarized in the table below, and it is pretty remarkable. The units here are exajoules (EJ = 1 x 1018 Joules) of energy over the course of a year. For reference, in 2018, the US total energy consumption (not just electrical energy) was 106 EJ and the global consumption was about 600 EJ. So, with just onshore wind energy, the potential is more than twice what we consume in the US, and more than 4 times the global consumption. But getting there is a matter of installing a lot of wind turbines!
| Region | World | Contiguous US |
|---|---|---|
| Onshore | 2484 | 223.2 |
| Offshore 0-20m | 151 | 4.32 |
| Offshore 20-50m | 144 | 7.56 |
| Offshore 50-100m | 270 | 7.92 |
| Total | 3024 | 244.8 |
Now let's consider a more practical question — how much wind energy have we managed to produce, and can we somehow project the past trends into the future? The figure below shows the global history of wind energy (solar is plotted too just for comparison), and you can see that it is growing fast.

The image is a line graph titled "Global Solar and Wind Energy Generation History," depicting the growth in energy generation from solar and wind sources from 1985 to 2020, measured in exajoules (EJ) per year.
- The y-axis represents the energy generated per year in EJ, ranging from 0 to 14 EJ.
- The x-axis represents the years from 1985 to 2020.
Two lines are plotted on the graph:
- Solar energy generation is represented by an orange line. It shows a very gradual increase from 1985, remaining almost flat until around 2005. After 2005, there is a noticeable uptick, with a significant rise starting around 2010, reaching approximately 7 EJ by 2020.
- Wind energy generation is represented by a green line. Similar to solar, wind energy generation starts from a low base in 1985, with minimal growth until around 2000. From 2000 onwards, there is a steep increase, particularly sharp after 2010, reaching around 12 EJ by 2020.
The graph visually demonstrates the exponential growth in both solar and wind energy generation over the years, with wind energy showing a more pronounced increase compared to solar. The data points are marked with small dots along the lines, and a legend in the center of the graph identifies the colors associated with solar (orange) and wind (green).
Both of these curves are growing exponentially, and the history so far suggests a growth of about 25% per year on average. If we assume that they continue to grow in the further following this exponential growth, we can project where we'll be at any time in the future. Below, we see where we might be in the year 2030, just eleven years from now. What you see is that we end up with vast amount of wind energy by 2030 — if it grows at the same rate it has been growing at, we end up with almost 300 EJ per year, about half of the current global energy consumption, and if it grows at a smaller rate of 20% per year, we still end up being able to supply about 20% of the total global energy demand.

The image is a line graph titled "Global Wind Energy Generation History and Projection," which illustrates the historical data and projected growth of global wind energy generation from 1985 to 2030, measured in exajoules (EJ) per year.
- The y-axis represents the energy generated per year in EJ, ranging from 0 to 300 EJ.
- The x-axis represents the years from 1985 to 2030.
The graph features two lines:
- Historical Data (blue line) - This line shows the actual wind energy generation from 1985 to around 2020. The generation starts from nearly 0 EJ in 1985 and shows a gradual increase over the years, with a noticeable acceleration starting around 2005, reaching approximately 15 EJ by 2020.
- Projections - There are two projection lines for future growth:
- 20% per year growth (yellow line) - This projection starts from the point where the historical data ends (around 2020) and shows a steep increase, reaching about 100 EJ by 2030.25% per year growth (orange line) - This projection also starts from the end of the historical data and shows an even steeper increase, reaching around 250 EJ by 2030
The graph visually represents the exponential growth expected in wind energy generation if the growth rates continue at 20% or 25% per year. The lines are color-coded with labels indicating the growth rates, and the overall trend suggests a significant future increase in wind energy generation.
Barriers to Additional Wind Energy Development
Barriers to Additional Wind Energy Development azs2It is worth noting that, as with solar, wind investments are not always happening in the windiest areas. The reality is that there are a large number of factors that influence the development of wind energy globally. As the technology for wind energy has improved, other factors have also come together to create market drivers for wind power. These drivers include:
- Declining Wind Costs
- Fuel Price Uncertainty
- Federal and State Policies
- Economic Development
- Public Support
- Green Power
- Energy Security
- Carbon Risk
Earth: The Operators' Manual
Despite all of these barriers to wind energy deployment, wind is, in fact, one of the fastest-growing sources of power generation in the world. Wind energy is being embraced in areas that have traditionally favored low-carbon energy development as well as in areas that have a long history of fossil fuel extraction and use. The following video explains how two very different regions - Denmark and Texas - have embraced wind energy.
Video: Yes, in My Backyard (aka YIMBY!): (9:08)
NARRATOR: Are there other examples of communities and nations that have begun the transition away from fossil fuels? What does it take to welcome the turbines and solar farms of the new energy system, and say, "Yes, In My Backyard." This is the story of two communities that at first look very different. Samso is a small island off the Danish mainland. West Texas is a vast, dry expanse in America's South. What both have is abundant wind. At times, Samso produces more electricity than it uses, exporting surplus power to the Danish mainland. And Texas wind now generates as much power as the next three U.S. states combined. Samso and West Texas both solved the NIMBY, not in my backyard challenge that has stymied so many renewable energy projects. It's not easy, but with patience, and persistence, and the efforts of the right people, it can be done.
SOREN: Okay-- My name is Soren Hermansen, and I am the Director of the Samso Energy Academy. Samso means, in Danish, means the Meeting Island-- when you make a circle around all of Denmark, then Samso is right in the center of the circle.
NARRATOR: Narrator: But it wasn't geography that brought Lykke Friis, then Denmark's Minister of Climate and Energy, here in mid-2011. It was why and how this community had turned NIMBY into "Yes, in my backyard."
LYKKE FRIIS: Well, Samso is a pioneering project, in the sense that Samso, way back, decided that Samso should become independent of fossil fuels. Narrator: Before its transformation, people thought of Samso as just a cute tourist community, busy in summer, empty and desolate in winter. Now people come here not just to see the turbines, but to understand the process that got the community to welcome wind energy. After a national competition, Samso was selected by the Danish government to be a proof of concept for how to transition from fossil fuels. But it was up to individuals like Soren Hermansen, with the passion and skills to effect change, to figure out just how. Soren: So when we won, the normal reaction from most people was, "Yeah, you can do this project, that's OK, but just leave me out of it."
NARRATOR: Samso has a deep attachment to its past and values its traditional way of life.
SOREN: But gradually we won their confidence in establishing easy projects to understand, and also easy projects to finance. Because basically, it's all about, "What's in it for me?" Because it's not convinced idealists or green environmental hippies who lives here.
NARRATOR: Soren, a native of the island, convinced some of his neighbors to become early adopters. They found success and spread the word. Jorgen Tranberg operated a large and profitable herd of milk cows. After initial reservations, he invested in a turbine on his own land. When that went well, Jorgen became part owner of one of the offshore turbines.
SOREN: Farmers, they have to invent new things and be ready for changes. So when they see a potential, they look at it, no matter what it is. They look at it, say, "Could I do this?" And if they see fellow farmers do the same thing, they are quick to respond to that. So even being very traditional and conservative in their heads I think they have this ability of making moves and do things because they have this independency in them. A farmer is a free man-- maybe he owes a lot of money to the bank, but he's still a free man in his thinking.
NARRATOR: It was seeing what was in it for them and for their community, that won over landowners in West Texas. And it took one of their own, a man whose family had deep roots in Roscoe's cotton fields, to educate them about wind farming. Cliff Etheredge: Well, I'm really a farmer-farmer, you see. I farmed for almost over 40 years. We're in-- right in the middle of the Roscoe Wind Farm. And we've got about 780 megawatts of production, that's per hour, enough electricity for about 265,000 average homes. Narrator: Roscoe had no oil and faced hard times in the early '90s, but it did have wind.
CLIFF: When this land was acquired there was absolutely no value to the wind. Fact is, it was a severe detriment, because of the evaporation of the moisture.
NARRATOR: Cliff, like Soren, had to work with his neighbors to get them ready to accept wind turbines.
CLIFF: The first thing farmers want to know is, "Well, how much is it going to cost me?" It costs them nothing. "What's it going to hurt?" Three to five percent of your farmland is all it's going to take up. You can do what you want to with the rest of it. Then it came down to, "Well, how much money is this going to make me?"
NARRATOR: Cliff did his research and checked his numbers with wind experts and the Farm Bureau.
CLIFF: Then I was able to go to our Landowners' Association and show them, where they had been receiving 35 to 40 dollars an acre, then the landowners could expect somewhere in the neighborhood of three times that.
NARRATOR: In fact, farmers stand to make 10 to 15 thousand dollars a year, per turbine, just from leasing the wind rights.
CLIFF: There was no guarantee in it from the very beginning, but sure enough we've got, I think, in the neighborhood of 95 or more percent of our area that accepted the wind farm.
NARRATOR: In both Samso and West Texas, individuals saw economic benefits. But the whole community, beyond the investors and land-owners, benefited too.
CLIFF: Because of the wind farm, now, and the people working in the wind industry, now we've got jobs available and opportunities for young people to come back from college or from technical school or from whatever. It's just been a Godsend.
NARRATOR: For Kim Alexander, superintendent of the Roscoe school district, that godsend translates into dollars.
KIM ALEXANDER: In 2007, prior to the wind values coming on our tax roll, our property values were at about 65 million dollars. And then, that wind development, they jumped to approximately 400 million dollars, to 465 million dollars.
NARRATOR: The school district will get more than 10 million dollars over a decade. That guaranteed revenue stream unlocked additional funding. School buildings, some dating from the 1930s, could be updated, and computer labs added.
CLIFF: This is an indication to me of what can be done for rural areas, and will be done, all the way to Canada-- bringing life and prosperity back to these rural communities that are suffering just like we have.
NARRATOR: The same oil shock that got Brazil started on ethanol, got Denmark started on manufacturing wind turbines, just in time to compensate for a decline in its shipbuilding industry.
LYYKE: And it's also good for the economy, in terms of export. I mean, 10 percent of Danish exports comes from the cleantech area.
NARRATOR: Energy and environment always require tradeoffs, such as clear vistas versus clean energy. It's something that communities have to make time to work through. Cliff, for one, believes it's worth it.
CLIFF: Everything, the schools, the churches, the civic organizations, all the businesses will benefit from this. It will increase, hopefully, our town's populations, and our economics.
KIM ALEXANDER: My granddad used to say, not realizing he was prophetic, but "If we could sell the wind, we'd be wealthy." Well, who would have ever thought we'd be able to sell the wind?
NARRATOR: For Samso, Denmark, and Texas, clean energy brought economic benefits and energy security. But replacing fossil fuel emissions with wind power has other advantages.
LYKKE: And let's not forget, also good for climate and health, and such, and that's a very important argument.
CLIFF: We've got a constant wind resource here, that's tremendously valuable, and as opposed to oil and gas, it'll last forever, and it doesn't pollute anything.
We have already mentioned the US Production Tax Credit, which is responsible for a good amount of the trend in US wind energy investment – both up and down! A decline in wind investment in 2010 and 2011 was due in part to the global financial crisis. A drop in natural gas/wholesale electricity prices has made some planned projects less competitive than originally expected and halted development. There has also been a slump in the overall demand for energy. Another factor that limits the growth of wind power capacity is the constraint on the transmission infrastructure. As can be seen in the wind capacity map on the previous page, many of the locations that experience the windiest conditions are not close to coastal population centers. The cost of upgrading this infrastructure is significant — perhaps \$30 to \$90 billion in the US by the year 2030 according to some estimates. This seems like a huge amount, but consider that our government spends about \$20 billion each year in direct subsidies to the fossil fuel industry, which would sum up to \$200 billion by the year 2030. In light of that, the upgrade cost for better transmission lines is a bargain!
Note
A great resource for information on the current state of the US wind market and the wind industry, in general, is the US Wind Technologies Market Report which is annually published by the Mark Bolinger and Ryan Wiser of the Lawrence Berkeley National Laboratory.