TheWindIndustry:Past,Present,FutureRandallSwisherPowerTestConferenceFebruary15,2010TheWindIndustry:Past,Present,FutureRandallSwisherPowerTestConferenceFebruary15,2010ThePast:ABriefHistoryoftheWindIndustryThePast:ABriefHistoryoftheWindIndustryGrowingaNewIndustryAcomplexmixoftechnology,policyandbusiness/economicsmustallworktogetherIntheBeginning:AVisionIntheBeginning:AVisionThecontext:1973wasthefirstAraboilembargo“Itwouldnotbefoolishatalltostatethatthiscountrycouldbetotallyenergizedbysolarenergyandotherrenewableprocessesbytheyear2000.”-WilliamHeronemus,1973,beforeaU.S.SenatesubcommitteeHeronemusfoundedtheUMassalternativeenergyengineeringprogram,wasapioneerofthewindfarmconceptandoffshorewindpowerHisvision:300,000windturbinesontheGreatPlainsproviding10-15%ofthenation’selectricityIntheBeginning:AVisionLate70’sPolicyProvidedaFoundationFederalWindR&DProgramPublicUtilityRegulatoryPoliciesActof1978(PURPA)•RequiresutilitiestobuyelectricityfromrenewableandcogenerationfacilitiesEnergyTaxActof1978•Creates15%EnergyInvestmentTaxCredit(EITC)•Addedtoexisting10%ITC•LimitedPartnershipStructure->WindFarmsCaliforniapolicy•Taxincentives•StrongregulatorysupportStandardoffercontractsInthe1980s,theU.S.ledtheWorldinWindTechnologyThefirstsuccessfulwindfarmswereestablishedin1981inCaliforniaManyU.S.turbinemanufacturerswereestablishedintheearly80sBy1989,theU.S.washometo85%oftheworld’sinstalledwindcapacity–almostallinCalifornia–andaleadingmanufacturer:USWindpower(foundedin1976)ButTurningVisiontoRealitywasToughHarnessingthewindwastougherthanitlooksFirstCaliforniaWindFarms–1981•Poorperformance-verylowcapacityfactors•Butprovidedasuccessfullaboratory–someturbinesworked,somedidn’tBuildingstrongcompanieswasachallenge–•Engineering•Businessacumen•Accesstocapital•KnowledgeoftheutilityindustryWeTurnedourBacksontheOpportunityTheDOEWindR&Dbudgetwascut90%throughthe1980sThewindinvestmenttaxcreditwasabruptlyendedin1986•MostU.S.turbinemanufacturerswe...