Summary
This 2006 fact sheet from the Environmental and Energy Study Institute provides an overview of wind energy in the United States, covering its capacity, costs, environmental benefits, and the impact of federal tax credits on industry growth.
Key insights
- As of 2004, installed wind power plants in the United States had an electrical capacity of 6,740 megawatts (MW), which was sufficient to serve 1.6 million households. While wind energy provided 0.3 percent of US electricity at the time, the American Wind Energy Association projected it could meet six percent of demand by 2020.
- The cost of wind power decreased significantly from $0.80 per kWh in 1980 to between $0.03 and $0.06 per kWh by 2006, aided by a Production Tax Credit (PTC) of 1.9 cents per kWh. Capital costs represent approximately 70 percent of the total cost of wind energy.
- The federal Production Tax Credit (PTC) is a primary driver of domestic production, but its expiration in 2004 caused a sharp decline in capacity additions, dropping from 1,690 MW in 2003 to 390 MW in 2004. Reauthorization through December 31, 2005, led to over 2,000 MW of new capacity under construction in 2005.
- Wind energy offers environmental and economic benefits, including the prevention of 10.6 million tons of carbon dioxide, 56,000 tons of sulfur dioxide, and 33,000 tons of nitrogen oxides in 2004 compared to the average utility fuel mix. Economically, wind farms provide annual leasing payments of $2,000 to $4,500 per quarter-acre to landowners.
- While the US was previously a leader, Germany's installed wind capacity has exceeded that of the US since 1997. Additionally, Spain, Denmark, and the United Kingdom are growing faster than the US and leading in the development and marketing of new technologies.
Cite the original document
- APA
- Environmental and Energy Study Institute (2006). Wind Energy. https://www.eesi.org/files/wind_energy_0506.pdf
- Chicago
- Environmental and Energy Study Institute. Wind Energy. 2006. https://www.eesi.org/files/wind_energy_0506.pdf.
- Wikipedia
- {{cite report |author=Environmental and Energy Study Institute |title=Wind Energy |date=May 2006 |url=https://www.eesi.org/files/wind_energy_0506.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{environmentalandenergystudyinstitute2006wind, author = {{Environmental and Energy Study Institute}}, title = {{Wind Energy}}, institution = {Environmental and Energy Study Institute}, year = {2006}, month = may, url = {https://www.eesi.org/files/wind_energy_0506.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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