Summary
The document outlines the state of the US wind energy sector as of 2006, noting that installed capacity reached 6,740 MW in 2004. It highlights the role of the Production Tax Credit (PTC) in driving growth and reducing costs to between $0.03 and $0.06 per kWh. The text compares onshore and offshore wind potential, discusses the environmental benefits of avoiding carbon dioxide and sulfur dioxide emissions, and notes that the US has been surpassed by Germany, Spain, Denmark, and the UK in wind capacity and technology development.
Key insights
- US wind power capacity grew by an average of 25 percent annually from 1990 to 2003, though growth slowed to 6 percent in 2004 due to the expiration of the Production Tax Credit. By 2004, installed capacity was 6,740 megawatts (MW), capable of powering 1.6 million households.
- The cost of wind power has decreased significantly from $0.80 per kWh in 1980 to between $0.03 and $0.06 per kWh in 2006, aided by a Production Tax Credit of 1.9 cents per kWh. Capital costs represent approximately 70 percent of the total cost of wind energy.
- Wind energy provides environmental benefits by preventing pollution; electricity generated by US wind farms in 2004 avoided the release of 10.6 million tons of carbon dioxide, 56,000 tons of sulfur dioxide, and 33,000 tons of nitrogen oxides.
- While the US was previously a leader, Germany's installed wind capacity has exceeded that of the US since 1997. Other nations, including Spain, Denmark, and the United Kingdom, are currently growing faster and leading in the development of new wind technologies.
- Offshore wind facilities can produce 50 percent more power than onshore facilities due to more consistent and stronger winds, but they face higher initial capital costs (30 to 70 percent higher) and increased operations, maintenance, and transmission expenses.
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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