Today the American Wind Energy Association (AWEA) released its annual rankings. These rankings showed Iowa moved up to second in the nation for installed wind capacity, after installing close to 1,600 MW in 2008. Iowa had a total installed 2,791 capacity of megawatts by year-end 2008, equal to 11 percent of the nation’s total wind capacity.
The Iowa Policy Project issued its own report this morning, to fill in some of the details about Iowa’s outstanding growth. The most impressive is that according to new estimates by the Iowa Utilities Board, wind fuels about 15 percent of the electricity generated in Iowa. This is a big increase from the 5 percent wind-powered generation estimated in 2006.
With this big jump, Iowa is now a world leader in the percent of electricity generated from wind power. To find comparable examples of wind production, we must look across the ocean to European countries. According to AWEA, Denmark leads the world, producing more than 20 percent of its electricity from wind energy.
Iowa’s outstanding growth in wind production calls into question the common argument that the costs of reducing our greenhouse gas emissions and addressing climate change are too high to justify action.
Looking at Iowa’s electricity prices since 1998 — the year before Iowa’s wind boom began — our electricity prices have remained below the national average and in fact have not increased as quickly as the national average price in the last three years (2005 to 2007). Assuming a somewhat similar portion of the wind-generated electricity produced in Iowa was actually consumed in Iowa, wind’s great expansion did not cause prices to spike.
Even as Iowa is leading the way in producing electricity from wind power, significant room remains to reduce our greenhouse gas emissions by increasing our use of renewable energy sources. On the upper boundaries, AWEA estimates that Iowa has the potential to generate 62,900 megawatts from wind power.
The new estimates of Iowa’s outstanding wind production, and its potential for new wind production, show that Iowans need not fear taking strong steps to address climate change. In fact, while still being thoughtful, Iowa should rapidly enact policies that continue to help our renewable energy production grow.
Posted by Teresa Galluzzo, Research Associate