Wind power in the United States
The 2011 NREL report, "Large-Scale Offshore Wind Power in the United States", analyzes the current state of the offshore wind energy industry. According to the report, offshore wind resource development would help the country to achieve 20% of its electric power from wind by 2030 and to revitalize the manufacturing sector. Offshore wind could supply 54 gigawatts of capacity to the nation's electrical grid, thereby increasing energy security. It could also generate an estimated $200 billion in new economic activity and create thousands of permanent jobs. NREL’s report concludes that "the development of the nation’s offshore wind resources can provide many potential benefits, and that offshore wind energy could play a vital role in future U.S. energy markets".
United States wind energy policy
The Production Tax Credit has been the primary incentive for wind energy and has been essential to the industry's research and development. Wind Power development in the United States has shown a great dependence on the PTC. The wind industry has experienced growth during the years leading up to the expiration of the PTC and a dramatic decrease in installed wind capacity in years where the PTC has lapsed. In 2003, 1687 MW of capacity were installed leading up to a lapse of the PTC in 2004. In 2004, only 400 MW of capacity were installed in the United States. With the PTC reinstated in 2005, 2431 MW of capacity were installed which was a record at the time for the United States. The PTC allowed for the United States to lead the world in wind power additions in 2005 and 2006 with 16% of the worldwide capacity being installed in 2006 coming from the United States. The planning and permitting process for wind energy can take up to two years. With short-term extensions of the PTC, big investments from companies for research and development are less likely to occur. The current trend of short-term extensions of the Production Tax Credit have led to a boom and bust cycle of short-term planning and low number of investments. As the PTC expires many investors hurry to finish projects thus producing smaller capacity installations and creating higher electricity costs. Longer term Production Tax Credit policy would stimulate low-cost wind development and establish a more stable policy for wind development. Having short-term extensions on the PTC can potentially slow wind development, raise costs, require a greater reliance on foreign manufacturing, produce transmission issues, and most importantly can reduce the amount of research and development of wind energy. The world energy council has estimated that new wind capacity worldwide will amount to $150 to $400 billion in new business over the next twenty years. The 2015 extension is expected to add $35 billion of investment for 20 Gigawatts of wind power. Similar figures are expected for solar power, and combined the PTCs have a value of $25 billion.