Transmission constraints pose greatest barrier to wind development per industry poll

NRG Systems, Inc - 05.28.2009

For the second year in a row, transmission/interconnection constraints were identified as the greatest barrier to wind energy development according to a poll conducted by NRG Systems at the American Wind Energy Association’s (AWEA) WINDPOWER 2009 Conference held in Chicago earlier this month. Forty-nine percent (49%) of respondents cited transmission or interconnection issues as the single greatest barrier to wind development in the United States.

NRG Systems, manufacturer of wind measurement systems, conducted a similar poll at the 2008 WINDPOWER Conference as well. This year, the U.S. economy clearly had an impact on poll results, with 28% of respondents identifying financing/access to capital as the second greatest barrier to wind development. In 2008, U.S. federal policy was identified as the second greatest barrier. In this year’s poll, U.S. federal policy (13%), public attitudes toward wind energy (8%) and supply chain constraints (8%) were of much less concern.

When asked which initiative or policy would contribute most to the development of wind energy, 43% of respondents chose an upgraded national transmission system, followed by 31% who chose a national Renewable Electricity Standard (RES). Feed-in tariffs came in third with 10%, followed closely by cap-and-trade legislation with 9%. Only 7% thought banking and finance recapitalization would contribute most to wind energy development.

“Our purpose in conducting this poll is to get an instant read on what people think about the challenges and opportunities facing the wind industry,” said Jan Blittersdorf, president and CEO of NRG Systems. “Clearly, many external factors affect the industry and this poll captures how those change, or don’t change, from year to year.”

Financial issues rather than transmission/interconnection issues were identified as the greatest barrier to individual company growth, with 45% of respondents identifying access to capital as the greatest barrier. Transmission/interconnection issues came in second with 25%. In last year’s poll, competition for skilled labor was cited as the greatest barrier to company growth.

Despite the bleak economy, 72% of respondents still expect company sales to grow over the next two years. When asked if they expected their company to benefit from the American Recovery and Reinvestment Act, 70% answered positively and 19% were unsure.

Respondents identified North America (55%) and China (32%) as the regions that hold the greatest promise for future wind development. This was similar to results from last year’s poll.

When asked how important it was to respondents that they work in a green job, 85% indicated it was important.

In her talk to more than 500 job seekers at the AWEA job fair, Jan Blittersdorf said, “The future is bright for our industry despite the economy. Our industry is looking for people with all kinds of skills as our industry gears up to play a dominant role in the fight against climate change.”

About the NRG Systems Industry Poll:

The purpose of the NRG Systems industry poll is to capture the pulse of the wind energy industry on an annual basis and identify issues and trends of concern to WINDPOWER attendees. Using audience response technology from iClicker, the poll captures instant responses to questions about the industry and displays them to respondents in real-time. In 2009, more than 400 conference attendees participated in the poll at two venues: a pre-conference seminar on May 4 and the Women of Wind Energy luncheon on May 5. The respondents represented diverse sectors and company sizes in the wind energy industry.

About NRG Systems:

NRG Systems is an independently-owned company that has served the global wind energy industry for more than 25 years. Its wind measurement systems and turbine control sensors can be found on every continent in more than 130 countries, serving electric utilities, wind farm developers, research institutes, government agencies, and universities. For more information on NRG Systems, Inc., visit www.nrgsystems.com.

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