Wind Generation a Potential Win for Wisconsin

During economic downturns, it is well to remember that the marketplace is constantly shifting, and that as demand for one class of products wanes, demand increases for another class. Wind generation offers Wisconsin just such an opportunity for economic growth.

Wisconsin's abundant natural resources, highly skilled workforce, world-class educational research institutions and geographic desirability in the middle of the U.S. make us well-positioned to become the hub of renewable energy development and delivery, and we have particular advantages in wind component manufacturing.

Our state's manufacturers have a long history of manufacturing parts for original equipment manufacturers, so they understand how to succeed as part of a supply chain. The production requirements for wind turbines (towers, gears, shafts) draw heavily on our skills and expertise. But there's more.

The Department of Energy's “20-percent Wind Scenario" forecasts an annual installation of 7,000-10,000 new turbines by 2018.

At the end of 2007, over 2,000 turbines were already under construction for 2008. By the end of 2008, new turbine installations were projected to number nearly 5,000.

In addition to these new installations, component parts will be required for the existing installations as they age. A wind turbine comprises more than 1,000 individual parts.

Historically, the components for turbines have been manufactured outside of the United States. It is projected that 2009 will be the first year that a majority of components are manufactured in the United States.

Wisconsin is strategically located to supply the Upper-Midwest with wind turbine components. Our state ranks as the #8 state to benefit from wind manufacturing and the associated supply chain, according to the Renewable Energy Policy Project. Of traditional manufacturing states, Wisconsin is nearest the Minnesota-Iowa corridor. Our ports could also facilitate exports outside of the region.

Wisconsin could create up to 30,000 wind-industry-related jobs by 2030. And we have yet another advantage. Wisconsin will shortly receive $55 million in federal energy stimulus funds. Unlike many other states, Wisconsin already invests in community-based energy efficiency initiatives, so we can direct our funding primarily to business development.

At the Department of Commerce, we'll be looking for opportunities to fund projects in this exciting new area. We'll be keeping you posted when this funding is available. Check out our website anytime at www.commerce.wi.gov.

-- Richard J. Leinenkugel, Secretary