Wind Energy

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Industry Overview
Wind Energy by the Numbers
Cluster Strengths
Cluster Challenges
Key Initiatives
Cluster Organizations
 

Industry Overview 

Increasing volatility in gas prices, climate change, and the growing fear of the future constraints on carbon energy sources have led all but 13 U.S. states to adopt some version of a renewable energy policy. European firms are investing heavily in American wind energy companies, and currency exchange rates are making manufacturing in the U.S. more desirable.  Wind energy manufacturing provides short-term construction jobs and long term employment for operating and maintaining the wind facilities. Locally owned wind farms allow significant long-term returns on investment, which can have positive effects on local regions as well. 

New economic data on the potential impacts of wind energy development are becoming available. For example, wind projects in Oregon brought over $13 million in revenue to local counties in 2010 and an estimated $7 million in annual lease/royalty payments to Oregon landowners. Wind companies have made over $4.5 billion in investments in Oregon.  

In 1994, a broad coalition of public-interest organizations and energy companies created the Renewable Northwest Project (RNP) to actively promote development of the region's untapped renewable resources. RNP has proven to be a powerful advocate for expanding wind, solar, and geothermal energy in the Northwest.

Wind Energy by the Numbers

Source: BLS, QCEW data - Renewable Energy Policy Project, Wind Turbine Development, Technical Report 2004

Cluster Strengths

• Logistics and ports, particularly the Port of Vancouver, allow for easy transportation access.
• Oregon is a national leader in wind power installations and generation. Oregon ranks sixth in the US in total wind capacity.
• The local market is embracing renewable energies and neighboring California sets a powerful standard.
• Portland is the regional headquarters for three major utilities and is the North American Headquarters for Vestas and Iberdrola Renewables.
• Transportation policies for trucks to haul wind turbines are more favorable than Washington's.
• Oregon has a strong Renewable Portfolio Standard (RPS).

Cluster Challenges

• Transmission constraints on the electricity grid are becoming increasingly problematic; new and improved transmission infrastructure must be built.
• There is a lack of certainty around the scope and timing of federal energy policies and incentives related to renewable energy.
• Equipment procurement problems make it difficult to get turbine component parts because many are not manufactured here, and exchange rates make them expensive.
• There is a lack of sufficiently skilled workers (GIS and operating technicians, electrical and environmental engineers, and MBAs with an understanding of renewable energy, project finance, etc.).
• There are few university programs focused exclusively on renewable energy, with the exception of the Oregon Institute of Technology and Columbia Gorge Community College.

Key Initiatives

• Address issues in utility wind integration.
• Address siting issues for both wind projects and transmission.  
• Develop a comprehensive plan to deal with transmission constraints. (Chris Edwards proposal)
• Develop a vibrant supply chain for the growing wind industry by collaborating with other Oregon industries to create new business opportunities.
  • Discuss opportunities with Oregon's manufacturing and construction sectors.
  • Provide local manufacturers with information on requirements and opportunities, and integrate them into a networked organization that gives them a head start on entering this rapidly expanding area.
  • Bring national and international wind equipment manufacturers and organizations to the NW to share knowledge and opportunities with the Northwest's skilled and experienced manufacturers.
  • Work to improve worker training and provide incentives for manufacturers to retool into the wind supply chain.
• At the national policy level, pass a federal Renewable Portfolio Standard and comprehensive climate legislation. Maintain the Production Tax Credit for renewable energy which is set to expire December 31, 2012. 
• Address the issue of cost and the interconnection standards/rules with the Public Utility Commission and other utilities.  Extend Energy Planning Council to coordinate across agencies (Land Use, Economic Development, Environment, Energy, etc.) 
• Expand and improve the education and workforce training programs with a focus on renewable energy.

Cluster Organizations

• Renewable Northwest Project
• Portland Development Commission
  
• American Wind Energy Association