American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report

Transcription

1 American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report A product of AWEA Data Services Released October 25, 2018 The U.S. wind industry installed 612 megawatts (MW) in the third quarter of 2018, bringing year-to-date installations to 1,644 MW. There are now 90,550 MW of installed wind capacity in the United States. Project developers reported a combined 37,965 MW of wind capacity under construction or in advanced development as of the end of the third quarter, a 28% year-over-year increase. Construction activity reached a new record of 20,798 MW after construction started on 2,180 MW in the third quarter. Project developers announced 2,467 MW of PPAs signed during the third quarter, contributing to a total of 7,550 MW contracted year-to-date in PPA activity for the year exceeds total PPA volumes in each of the past four years and marks the most active year for corporate and non-utility PPAs.

2 Table of Contents Third Quarter Hightlights 3 U.S. Wind Power Capacity Growth U.S. Annual and Cumulative Wind Power Capacity Growth 4 Quarterly U.S. Wind Power Capacity Installations 5 New Wind Power Capacity Installations in Third Quarter 2018, by State Wind Power Capacity Installations, Top States 7 U.S. Wind Power Cumulative Installed Capacity, by State 8 Wind Power Capacity Under Construction or in Advanced Development 9 Wind Power Capacity Under Construction 10 Wind Power Capacity Under Construction, by State Wind Power Capacity in Advanced Development, by State Wind Power Capacity Under Construction or in Advanced Development, Top States Wind Power Capacity in Advanced Development Wind Power Procurement Activity Wind Power Capacity Offtake Status Power Purchase Agreements Signed in 2018 Map of Power Purchase Agreements Signed in 2018 Mergers & Acquisition Activity Wind Turbine Market Trends Wind Turbine Manufacturer Market Turbine Technology Trends Regional Turbine Technology Trends U.S. Offshore Wind Energy Activity Appendices Map of Projects Online during 2018, Under Construction, or in Advanced Development 23 Utility-Scale Wind Projects Completed during Utility-Scale Wind Projects Under Construction Utility-Scale Wind Projects in Advanced Development 2018 Power Purchase Agreements 2018 Project Acquisition Activity Electric Utility Renewable Energy Requests for Proposals (RFPs) AWEA Data Services 42 American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 2

3 Third Quarter Highlights 2018 Wind Project Installations The U.S. wind industry installed 612 MW of new wind power capacity during the third quarter of 2018, a 15% increase in installations over the third quarter of Year-to-date the industry has commissioned 1,644 MW of wind power capacity. A total of 11 new wind projects were commissioned across seven states during the third quarter. Texas led with 216 MW installed, followed by Oklahoma (199 MW), and Ohio (108 MW). In addition to new capacity additions, developers completed 329 MW of partial repowerings across three projects in the third quarter. There are now 90,550 MW of cumulative installed wind capacity in the United States, with more than 54,000 wind turbines operating in 41 states plus Guam and Puerto Rico. Wind Capacity Under Construction or in Advanced Development Construction activity reached a new record of 20,798 MW at the end of the third quarter, with an additional 17,167 MW in advanced development. The combined 37,965 MW represent a 28% year-over-year increase. Projects totaling 2,180 MW started construction and a further 2,327 MW entered advanced development during the third quarter, a combined 4,507 MW in new announcements. At the regional level, 33% of combined activity is located in the Midwest, 21% in Texas, 20% in the Mountain West and 15% in the Plains states. Seven states now have more capacity under construction or in advanced development than currently operating. Wind Power Procurement Activity Project developers announced 2,467 MW of new PPAs in the third quarter, bringing year-to-date activity to 7,550 MW. PPA activity in the first three quarters already exceeds total PPA volumes in each of the past four years. Utilities signed contracts for 1,522 MW of wind capacity in the third quarter, with Eversource Energy, National Grid, and Unitil procuring 800 MW from the Vineyard Wind offshore project. Corporate and other non-utility customers signed 38% (945 MW) of capacity contracted in the third quarter, including eight first time wind buyers. Through the first three quarters alone, 2018 is already the most active year for corporate and non-utility PPAs, surpassing the record previously set in Turbine Technology Trends GE Renewable Energy turbines represent 63% of the U.S. wind turbine market in the first three quarters of 2018, while Vestas represents 26% and Goldwind represents 10%. The third quarter witnessed the entry of the first 4 MW onshore wind turbines in the U.S. with orders announced by both Senvion and Vestas. The majority of projects under construction or in advanced development have selected turbines with a nameplate capacity between 2 MW and 3 MW, while about 30% of projects where turbines have been reported are using turbines rated 3 MW or larger. American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 3

4 U.S. Annual and Cumulative Wind Power Capacity Growth Cumulative Capacity Annual New Capacity Installations 1Q New Capacity Installations 2Q New Capacity Installations 3Q New Capacity Installations 4Q New Capacity Installations Note: Utility-scale wind capacity includes installations of wind turbines larger than 100-kW for the purpose of the AWEA U.S. Wind Industry Quarterly Market Reports. Annual capacity additions and cumulative capacity may not always add up due to decommissioned and repowered wind capacity. Wind capacity data for each year is continuously updated as information changes. AWEA did not track quarterly activity prior to American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 4

5 Quarterly U.S. Wind Power Capacity Installations 9,000 8,000 7,000 1Q 2Q 3Q 4Q 8,382 The U.S. wind industry installed 612 MW of wind power capacity during the third quarter of 2018, a 15% increase in installations over the third quarter of Year-to-date installations are down 43% compared to the first three quarters of 2017, but are roughly on par with 2016 installation activity. In addition to new capacity additions, developers completed 329 MW of partial repowerings across three projects in the third quarter. 6,478 Wind Power Capacity (MW) 6,000 5,000 4,000 4,116 3,603 4,998 4,125 3,000 3,072 3,299 3,230 2,000 1,589 1,912 1,834 1,661 1,603 2,000 1, , ,118 1,050 1, , , American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 5

6 New Wind Power Capacity Installations in Third Quarter 2018, by State AK 1 WA MT ND VT ME CA 3 OR NV ID AZ UT WY CO NM SD NE 7 KS OK 199 MN IA MO AR WI IL MI IN KY TN OH 108 WV SC PA VA NC NY 78 CT NJ DE MD NH MA RI GU HI TX 216 LA MS AL GA FL PR 0 to 100 MW >100 MW to 250 MW >250 MW to 500 MW >500 MW to 1,000 MW >1,000 MW American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 6

7 2018 Wind Power Capacity Installations, Top States Texas Oklahoma 199 California 131 Illinois 132 Ohio 108 New York 78 Michigan 44 Nebraska 30 Montana 25 Iowa 4 Massachusetts 2 Alaska 1 Minnesota Wind Power Capacity (MW) 216 1Q 2018 Installations 2Q 2018 Installations 3Q 2018 Installations Top Five States by Cumulative Installed Wind Power Capacity State Total Installed Capacity (MW) 2018 Capacity Additions (MW) Texas 23, Oklahoma 7, Iowa 7,312 4 California 5, Kansas 5,110 0 Developers commissioned a total of 11 new wind projects totaling 621 MW across seven states during the third quarter. Texas led in third quarter installations with 216 MW, followed by Oklahoma (199 MW), and Ohio (108 MW). Texas and Oklahoma also lead in installations year to date in Alaska commissioned its first wind turbine since 2013, while New York saw the largest project built in the state since Texas continues to lead the nation with 23,421 MW of cumulative installed capacity. While Oklahoma strengthened its second place ranking in the third quarter, Iowa is on track to surpass Oklahoma and reclaim the second spot by the end of the year. American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 7

8 U.S. Wind Power Cumulative Installed Capacity, by State AK 63 GU <1 CA 5,690 OR 3,213 WA 3,075 HI 206 NV 152 ID 973 AZ 268 UT 391 MT 720 WY 1,489 CO 3,106 NM 1,682 ND 2,996 SD 977 NE 1,452 KS 5,110 TX 23,421 OK 7,694 MN 3,699 IA 7,312 MO 959 AR LA WI 737 MI 1,904 IL 4,464 MS IN 2,117 TN 29 AL KY OH 725 GA WV 686 SC FL PA 1,369 VA NY 1,907 NC 208 VT 149 ME 923 NH 185 MA 113 RI 54 CT 5 NJ 9 DE 2 MD 191 PR to 500 MW >500 to 1,000 MW >1,000 to 2,500 MW >2,500 to 5,000 MW >5,000 to 10,000 MW >10,000 MW American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 8

9 Wind Power Capacity Under Construction or in Advanced Development There are now 37,965 MW of wind power capacity under construction (20,798 MW) or in advanced development (17,167 MW), a 28% year- over-year increase. Project developers announced 4,507 MW in combined new activity during the third quarter, with projects totaling 2,180 MW starting construction and 2,327 MW entering the advanced development phase. While advanced development activity trended higher than construction activity at the beginning of the year, the last two quarters saw a number of projects move into the construction phase. Wind projects currently under construction have been underway for an average of three quarters, while projects in advanced development have been underway for an average of one year. Nearly 50% of the 37,965 MW underway started construction or entered advanced development in ,000 Construction and Advanced Development Activity over Time 37,794 37,965 Current Construction and Advanced Development Pipeline by Announcement Year 20,000 35,000 33,449 Wind Power Capacity (MW) 30,000 25,000 20,000 15,000 15,231 18,279 23,280 21,344 23,977 25,819 29,634 28,668 4,507 MW in new announcements Wind Power Capacity (MW) 15,000 10,000 5,0605,470 9,479 9,069 10,000 5,000 5,000 2,360 7,405 9,222 9, , Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Under Construction End of Quarter Advanced Development End of Quarter Combined Total Pre Announcement Year Under Construction Advanced Development American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 9

10 Wind Power Capacity Under Construction 22,000 20,000 18,000 Project construction activity set a new record in the third quarter, with a total of 20,798 MW of wind capacity now under construction. Construction activity increased 10% over the second quarter as 2,180 MW started construction in the third quarter. Total wind capacity under construction is up 51% year-over-year. 16,000 Wind Power Capacity (MW) 14,000 12,000 10,000 8,000 6,000 4,000 2, Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Existing Capacity Under Construction New Capacity Under Construction Completed Capacity in Quarter Note: Project developers self-report projects as under construction. The AWEA under construction definition is at the discretion of the project developer and may be different from the start construction definition under IRS Notices and ; projects are presumed to have taken steps to qualify for the PTC through safe harbor or physical construction. American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 10

11 Wind Power Capacity Under Construction, by State American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 11

12 Wind Power Capacity in Advanced Development, by State Note: AWEA defines a project as in advanced development if it has not yet started construction, but has either signed a PPA, announced a firm turbine order, or been announced to proceed under utility ownership. American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 12

13 Wind Power Capacity Under Construction or in Advanced Development, Top States American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 13

14 Wind Power Capacity in Advanced Development American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 14

15 Wind Power Capacity Offtake Status American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 15

16 Power Purchase Agreements Signed in 2018 American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 16

17 Map of Power Purchase Agreements Signed in 2018 American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 17

18 Mergers & Acquisitions Activity American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 18

19 Wind Turbine Manufacturer Market American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 19

20 Turbine Technology Trends American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 20

21 Regional Turbine Technology Trends American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 21

22 U.S. Offshore Wind Energy Activity State RFP Project Winners RFP State Project Name Project Capacity (MW) Project Developer Project Location Power Purchaser Massachusetts Vineyard Wind 800 Avangrid Renewables; Copenhagen Infrastructure Partners Offshore Massachusetts Eversource Energy, National Grid, Unitil Rhode Island Revolution Wind 400 Deepwater Wind Connecticut Revolution Wind 200 Deepwater Wind Maryland Maryland Offshore Wind Project Area of Mutual Interest between RI & MA Area of Mutual Interest between RI & MA National Grid 248 U.S. Wind Inc Offshore Maryland Maryland PSC (ORECs) Maryland Skipjack Wind Farm 120 Deepwater Wind Offshore Delaware Maryland PSC (ORECs) Eversource Energy and United Illuminating Co Demand for offshore wind energy continued in the third quarter, with new PPAs and announcements for solicitations totaling up to 2,000 MW of offshore capacity. New Jersey opened a solicitation in September for 800 MW of offshore wind, the first solicition for the state to help meet its target of 3,500 MW of offshore wind by In the same month, Rhode Island utility Narragansett Electric issued an RFP for 400 MW renewable energy, which is open to offshore wind. New York also announced that the state will hold its first large-scale solicitation for 800 MW of offshore by the end of In August, National Grid USA, Eversource Energy, and Unitil Corp filed contracts with the Massachusetts Public Utilities commission for 800 MW of the Vineyard Wind project. The three utilities will buy energy and RECs from Vineyard Wind at a total levelized price of 6.5 cents per kilowatt hour, the lowest offshore wind PPA price in the U.S. to date. Vineyard Wind was selected as the winner of Massachusetts first major offshore wind solicitation earlier this year. Also in August, Dominion Energy filed with Virginia for approval to build the 12 MW Coastal Virginia Offshore Wind project and Ørsted signed a subcontract with Siemens Gamesa Renewable Energy for two 6-MW SWT turbines for the project. In addition, EDF Renewables and Fishermen s Energy of New Jersey filed an application for approval of the Nautilus Offshore Wind Project off of New Jersey from the New Jersey Board of Public Utilities. American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 22

23 Map of Projects Online during 2018, Under Construction, or in Advanced Development Projects Online 1Q 2018 Projects Online 2Q 2018 Projects Online 3Q 2018 Projects Under Construction or in Advanced Development AK HI American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 23

24 Utility-Scale Wind Projects Completed during 2018 State Project Phase Name First Quarter 2018 Project Capacity (MW) Turbine OEM Turbine Model Project Developer Project Owner Power Purchaser CA Tule GE Renewable Energy Avangrid Renewables Avangrid Renewables Southern California Edison IA Prairie II 4.00 (of ) Vestas V RPM Access Wind Development; MidAmerican Energy MidAmerican Energy MA Otis Wind Energy Project 1.50 VENSYS VENSYS 82 SunCommon; Town of Otis Town of Otis MidAmerican Energy Co Town of Otis, Excess to Eversource Energy MI Cross Winds Energy Park II GE Renewable Energy Consumers Energy Consumers Energy Consumers Energy MN White Earth Tribe 0.75 Refurbished Zond White Earth Nation White Earth Nation Minnkota Power Coop MT Big Timber GE Renewable Energy BayWa r.e. Wind LLC BayWa r.e. Wind LLC NorthWestern Energy TX Flat Top Vestas V Innergex Renewable Energy Second Quarter 2018 Innergex Renewable Energy; BlackRock IL Bishop Hill III GE Renewable Energy ; Invenergy Invenergy WPPI Energy Merchant Hedge Contract (ERCOT) (170 MW); Merchant Hedge Contract, Resold to QTS Realty Trust (30 MW) NE Kimball Wind Farm GE Renewable Energy Aspenall Energies Aspenall Energies Municipal Energy Agency of NE TX Rattlesnake Wind Goldwind GW109/2500 Goldwind Americas; RES Americas Goldwind Americas TX Santa Rita GE Renewable Energy Invenergy BHE Renewables TX UL Advanced Wind Turbine Test Facility Third Quarter Goldwind GW 3MW(S) Goldwind Americas West Texas A&M University Xcel Energy Merchant Hedge Contract (ERCOT) Kimberly-Clark (125 MW); City of Denton, TX (175 MW) AK Bethel Wind Turbine 0.90 EWT Americas DW Alaska Village Electric Coop Alaska Village Electric Coop Alaska Village Electric Coop CA Correctional Training Facility 1.7 GE Renewable Energy Foundation Windpower Foundation Windpower CA Salinas Valley State Prison 1.7 GE Renewable Energy Foundation Windpower Foundation Windpower Correctional Training Facility, Excess to Pacific Gas & Electric Salinas Valley State Prison, Excess to Pacific Gas & Electric NE Perennial Wind 6.90 GE Renewable Energy Bluestem Energy Solutions Bluestem Energy Solutions Perennial Public Power Dist NY Arkwright Summit Vestas V OH Northwest Ohio GE Renewable Energy EDP Renewables North America LLC Trishe Resources, Inc.; Starwood Energy EDP Renewables North America LLC Starwood Energy Bloomberg (20 MW); Merchant (NYSERDA) (58.4 MW) General Motors American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 24

25 Utility-Scale Wind Projects Completed during 2018 State Project Phase Name Project Capacity (MW) Turbine OEM Turbine Model Project Developer Project Owner Power Purchaser OH Valfilm Wind 3.00 Goldwind GW87/1500 One Energy LLC One Energy LLC OK Persimmon Creek I GE Renewable Energy ; Scout Clean Energy Quinbrook Infrastructure Partners; Elawan Wind TX Cactus Flats Vestas V RES Americas Southern Power TX Desert Sky (Repowering) GE Renewable Energy ; Valfilm, Excess to AEP Generating Company Merchant Hedge Contract (SPP) General Motors (50 MW); General Mills (98.35 MW) AEP; Invenergy AEP Energy Partners; Invenergy City of San Antonio TX Trent Mesa (Repowering) GE Renewable Energy ; AEP; Invenergy AEP Energy Partners; Invenergy Undisclosed American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 25

26 Utility-Scale Wind Power Projects Under Construction American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 26

27 Utility-Scale Wind Power Projects Under Construction American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 27

28 Utility-Scale Wind Power Projects Under Construction American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 28

29 Utility-Scale Wind Power Projects Under Construction American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 29

30 Utility-Scale Wind Power Projects Under Construction American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 30

31 Utility-Scale Wind Power Projects in Advanced Development American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 31

32 Utility-Scale Wind Power Projects in Advanced Development American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 32

33 Utility-Scale Wind Power Projects in Advanced Development American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 33

34 Utility-Scale Wind Power Projects in Advanced Development American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 34

35 2018 Power Purchase Agreements American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 35

36 2018 Power Purchase Agreements American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 36

37 2018 Project Acquisition Activity American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 37

38 2018 Project Acquisition Activity American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 38

39 2018 Project Acquisition Activity American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 39

40 2018 Project Acquisition Activity American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 40

41 Electric Utility Renewable Energy Requests for Proposals (RFPs) American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 41

42 AWEA Data Services This Report is Powered by WindIQ WindIQ is your comprehensive database of all online, under construction, and advanced development wind projects and wind-related manufacturing facilities in the United States, with interactive web mapping features. All current AWEA Business and Utility members can access WindIQ at or For additional AWEA industry data & analysis, please visit where you can download previous versions of the Quarterly Market Reports and the latest Annual Market Report. The AWEA U.S. Wind Industry Third Quarter 2018 Market Report can be accessed at American Wind Energy Association U.S. Wind Industry Third Quarter 2018 Market Report Public Version 42