The U.S. wind energy industry is forecast to post another record year, marking the fourth year of record growth. AWEA's third quarter market report indicates the industry is on track to surpass the banner year of 2007, when 5,249 MW were installed, with a total of about 7,500 MW projected this year (7,500 MW would generate enough electricity to power the equivalent of about 2.2 million homes).

The report also shows the industry is aggressively expanding its manufacturing base in the U.S., creating jobs and fostering investment and growth even in a difficult financial climate. AWEA's report tallies the opening of eight new wind turbine component manufacturing facilities this year; the expansion of nine facilities; and the announcement of an additional 19 facilities.

As a result of recent manufacturing investment, AWEA estimates the share of domestically made components in wind turbines has risen from about 30% in 2005 to 50% today. The new facilities will create an estimated 9,000 jobs.

Despite record growth, AWEA does not expect this trend to continue next year. With some 8,000 MW already under construction for completion in 2008 and 2009, the wind industry remains relatively strong, but because of the late extension of the wind production tax credit and the evolving financial crisis, new construction starts are expected to slow in 2009, reported AWEA.

"The convenient truth here is that wind power provides a stimulus for our economy, as well as a climate change and energy security solution," said Randall Swisher, AWEA's executive director, in a statement. "The market, in spite of all its turmoil, clearly points to wind power as one of the most attractive energy options available today. But if we are to keep this momentum going, the new President and Congress will need to put in place what the majority of the American people support but the country still lacks: a long-term renewable energy policy."

The steps that the new Administration and Congress take to promote renewable energy will therefore be critical, said AWEA. Long-term, stable policies are needed to take full advantage of the industry's role in stimulating job creation and economic development, and to support growth of domestic turbine and component manufacturing, which will be one of the leading sources of new manufacturing jobs in the 21st century.

According to AWEA there is a huge demand for manufacturing large-scale components needed for wind farms. There are 8,000 parts in a wind turbine, ranging from large-scale gearboxes and blades to electronics, bolts and fasteners. The average wind turbine installed in 2008 contains 50% domestic-made components (up from less than 30% in 2005), according to the association.

AWEA said these policies include a long-term extension of the wind production tax credit (the recent financial rescue package extended the credit for one year only), a federal renewable energy standard, strong climate change legislation, and investment in new transmission infrastructure.