China tops U.S. in windpower growth (San Francisco)

After four years at the top, the United States has been edged out by China as the fastest growing windpower market in the world.

Even though China added new windpower projects at a faster pace in 2009, the United States market kept growing, with 28 states building new windpower plants during the year, for a total of $21 billion invested. The figures come from a report by the Department of Energy’s Lawrence Berkeley National Laboratory.

China built 36 percent of new projects in 2009, compared with 26 percent for the United States.

Though China grew faster, the United States still led in total windpower capacity at year end, with 35,000 megawatts. China had about 25,853 megawatts and Germany had 25,813 megawatts.

Changes in the market for windpower are hard to track, the report said, because two clashing forces -- the recession and generous government policies -- are pushing in opposite directions. Lower wholesale electricity prices (due to cheaper natural gas) have hurt growth because some windpower projects don’t pencil out at low prices. The DOE warned this competitive pressure may last a while, saying recent development of “shale gas” may keep natural gas prices low even as the economy recovers. Chevron Corp. (NYSE: CVX) and the other major oil companies are seeking shale gas around the world with more zeal these days.

The price of windpower projects is also climbing — the average in 2009 was $2,120 per kilowatt — and that also makes it less competitive and less attractive than other ways of generating power. Costs may drop in the future, however.

Texas led the United States in 2009, building 2,292 megawatts of new wind generating capacity. Four states — Iowa, the Dakotas and Minnesota — generate more than 10 percent of their electricity from wind.

Read the full story in the San Francisco Business Times.