Considering the economic slowdown, Steve Dayney, CEO of Portland, Ore.-based manufacturer REpower USA – a subsidiary of Germany-based REpower Systems – is feeling cautiously optimistic. During the first day of sessions at the Canadian Wind Energy Association's Annual Conference and Exhibition in Toronto, he echoed the optimism felt by some economists that the prospects for recovery are near.
‘We've bottomed out,’ he said. ‘However, by no means are we where we were 18 months ago.’
REpower Systems AG produces and markets wind turbines with rated outputs of 2 MW and 3.3 MW and rotor diameters of 82 meters to 126 meters. The company also sells offshore turbines with rated outputs of 5 W and 6 MW. The offshore wind turbines are available only in Europe, although Dayney expects that these turbines will be available in the U.S. by 2013.
After a challenging year marked by numerous government incentives designed to promote renewable energy, Dayney predicts that the U.S. industry will install between 6,000 MW to 7,000 MW of capacity this year. The U.S. installed approximately 8,300 MW of wind power in 2008.
‘I think 8,000 MW is doable, but probably not until 2010,’ he said, adding that the lack of financing is the reason for the drop. ‘Project finance is still very difficult. Cash is scarce right now,’ he said, adding that ‘good projects will continue to get funded.’
The other factor holding back development, Dayney said, is the lack of a federally mandated renewable electricity standard (RES). Although he acknowledged the need for an RES, any adopted standard must be meaningful, he said.
The RES ‘needs to be stronger than the one many states have now,’ he said.
When asked about ongoing trends, Dayney pointed to the trend of larger machines producing more megawatts. The machines, he said, will aid developers, who may have permitting limitations developing on a finite amount of land.
