January 2, 2020
Journal Article

The "Perfect Storm" for Distributed Wind Markets

Abstract

Close to 1 GW of distributed wind has been installed across all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Yet the number of installations varies greatly by state, even when wind resources are similar. This article examines three key factors that over the past thirteen years have shown to be enablers of success for distributed wind installations in the United States: 1) favorable policy environments, including consistent incentives, administrative support for cutting through red tape, and favorable interconnection, net metering, and permitting policies; 2) high electricity prices that would be displaced by wind energy generation, and, 3) favorable wind resources, enabling steady production of energy. Not all conditions need to be met simultaneously, yet of the studied markets for distributed wind in Iowa, New York, Washington, and Oregon, the most successful ones exhibit at least two out of the three conditions mentioned. We describe steps that policymakers, regulators, and market players have taken in the past to increase distributed wind installations in the United States.

Revised: November 3, 2020 | Published: January 2, 2020

Citation

Foster N., A.C. Orrell, J.S. Homer, and J.D. Tagestad. 2020. The "Perfect Storm for Distributed Wind Markets." Renewable Energy 145. PNNL-SA-120586. doi:10.1016/j.renene.2019.05.058

Research topics