Blowin’ in the Wind: Cautious, but Positive Growth Outlook for Wind Power
Michelle Philippon - Business Development Specialist
The outlook for wind power throughout the next few years is quite positive, as energy companies and construction firms can expect an almost 75GW total wind power growth in the U.S. and Canada from this year to 2025.
Most of the U.S. growth is anticipated to be in Texas, the Great Plains, and the Midwest, where new projects are expected to take place. Also, the U.S. Department of Energy’s Wind Vision report predicts that by using wind power, the U.S. may be able to meet 10% of its electricity needs by 2020.
Per a May 2016 report by IBISWorld, industry revenue is anticipated to experience an increase of 11.1% by 2017.
Overall, seen in the above graph, wind power is considered to be a growth industry.
Reasons for Industry Growth
This industry growth is due to several factors.
To begin with, here in the U.S., we have had what is described by WTWH Media, LLC as “unprecedented” long-term policy certainty. Meanwhile, in Canada, there have been some climate-conscious mandates in place in some of their provinces (for example, Alberta and Saskatchewan) which push for more low-carbon energy sources.
Playing a large part in the growth in U.S. wind power was the production tax credit (PTC), which provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualified energy resources and was extended in December 2015 to last until December 31, 2019.
Questions or comments? Please contact Michelle Philippon at mphilippon@teamCOACT.com