Bob Dylan, who said the answer was blowing in the wind, would be proud. The United States continues to lead the world in wind power growth, according to a report released by the U.S. Department of Energy today. 

U.S. wind power capacity increased by 27 percent in 2006, and the U.S. had the fastest growing wind power capacity in the world in 2005 and 2006, according to the Annual Report on U.S. Wind Power Installation, Cost, and Performance Trends: 2006, which provides a detailed and comprehensive overview of development and trends in the U.S. wind power market. 

Most notably, the report concludes that U.S. wind power capacity increased by 27 percent in 2006; and that

 the U.S. had the fastest growing wind power capacity in the world in 2005 and 2006.  (Alas, California was unseated by Texas last year and this year as the country’s fastest-growing wind power state; but at least we can rejoice in our country’s status.) More info from the report:

In 2006, for the second straight year, the U.S. led the world by installing 2,452 MW of wind power capacity, enough to power the homes in a city the size of Philadelphia.  The U.S. produces roughly 16 percent of the worldwide wind market, followed by Germany, India, Spain, and China.  

Specifically, some of the key findings of the Report include:

·        The U.S. is the fastest growing wind market worldwide. There remains substantial potential for the expansion of wind power to achieve approximately 20 percent of the nation’s generating mix. 

·        Texas, Washington, and California lead the U.S. in annual capacity growth.

·        Wind power is competitive and has provided good value in wholesale power markets.  Wind power has consistently been priced at, or below, the average price of conventional electricity (coal, nuclear, natural gas, etc.).

·        The cost of turbines has risen since 2002.  Higher costs have reversed the decline in total wind project costs and driven up the cost of generating wind power.  Turbine cost increases have been driven by rises in input material and energy prices, and some shortages in certain turbine components. 

·        Wind project performance, has increased sharply over the last several years.  This has been driven in part by improved project siting, and technological advancements.

·        The wind market is in a period of transition.  Electric utilities have shown increased interest in wind project ownership, and merchant wind power plants and sales to power marketers have become more common.