Wind industry ended 2020 with strongest quarter on record, concluding best year ever
While 2020 brought its share of surprises and disappointments, for renewable energy — and the wind industry in particular — its final quarter brought major gains, according to the American Clean Power Association’s (ACP) Market Report Fourth Quarter 2020.
For the U.S. wind industry, 2020 was its strongest year to date, but its final quarter alone added more wind power than in the entirety of 2019. Capacity increased by 85 percent over the previous year, producing 16,913 MW in total. In particular, the fourth quarter brought 10,593 MW of that capacity, obliterating previous records and bringing the total U.S. wind power capacity to 122,478 MW, which is enough energy to power 38 million homes.
“2020 was a banner year for the wind industry,” Heather Zichal, ACP CEO, said. “Despite all the challenges COVID-19 placed on our businesses, we still shattered nearly every record for capacity and growth. The fourth quarter was not only the strongest quarter on record, but it also saw more wind installed in just that quarter than in any full year in the modern industry’s 40 plus year history, except 2012.”
The additions were due to 54 new projects commissioned across 20 states in the fourth quarter. Another 34,757 MW of wind projects are either under construction or in advanced development. However, power purchase agreements are dropping off due to COVID-19 induced uncertainty, so its direct utility ownership of wind power continues to expand.
ACP researchers credited continued demand for clean energy, as well as technological improvements that have dropped prices, for the continued increase in wind capacity. The expiration of federal tax incentives also gave many developers the prod they needed to rush projects over the finish line in 2020. Texas led the pack, more than doubling its nearest competition in Wyoming, with 2,197 MW of additions.
Yet utility-scale solar and energy storage also set annual capacity addition records in 2020. The Energy Information Administration (EIA) noted that solar additions reached 11,158 MW in 2020, more than doubling what 2019 brought. Battery energy storage also increased by 734 MW in 2020, a 300 percent increase over 2019. This leaves the solar industry with 47,317 MW of operating power capacity in the U.S. and battery storage capacity at 1,756 MW.
“The American clean power industry looks forward to continuing to set records as we move towards a majority renewables U.S. electric system by the end of this decade,” Zichal said.
