According to a report published by IBISWorld, the revenue of the wind power industry is anticipated to reach $4.3 billion in 2012 at an annual growth rate of 19.3%. The revenue is expected to grow by 7.6% from 2011 to 2012.
Justin Molavi, analyst at IBISWorld stated that the wind energy source has turned out to be cost competitive with other sources of power generation through favourable government assistance. This has increased the total share of wind power in the U.S. from 0.4% in 2005 to approximately 2.3% in 2010. In addition, stronger economic growth is anticipated over the next five years, and a continued initiative on increasing energy self-sufficiency and minimizing greenhouse gas emissions will contribute to high growth in the wind power sector. The demand for electricity is estimated to increase, as businesses and consumers spend more on electricity.
Wind farm construction is expanding rapidly due to investment tax credits and mandates offered by the federal and state governments for renewable energy generation. Molavi noted that these incentives have decreased the production cost of wind energy and also enabled few downstream consumers to buy renewable energy.
The US Congress has passed an extension of grants for clean energy investment, which benefits the wind farm developers. The industry’s major players, including Xcel Energy, MidAmerican Energy, NextEra Energy and Iberdrola Renovables are already establishing wind farms at faster rates, thus enhancing the market share concentration.
Source: http://www.ibisworld.com/