
Image by Flickr user Green4All


So, it’s nice to see my story on foreign companies collecting stimulus dollars for wind energy getting attention on both sides of the issue/political spectrum. Both sides take some of the facts raised by my story and other coverage of the Chinese turbine deal and make some good points. Both don’t quite get everything right.
IER
On the one hand, you have the Institute for Energy Research, a decidely anti-wind group, that published their own report, at least partially based on my story. IER’s report not only looks at my investigation into wind, but adds their own information about solar energy, and generally concludes:
“The real problems are a government “stimulus” plan and efforts to centrally plan a “green economy.” The government can only “stimulate” by spending money that it has first taxed or borrowed from the private sector. It would be bad enough for the government to destroy jobs in American fossil fuel industry while spending money on domestic producers of “green energy.” But it is particularly absurd for the U.S. government to cripple American industry while shoveling the lion’s share of the pork into the hands of foreign beneficiaries.”
So, they’re not fans of the stimulus program at all. But, there are some clarifications that need to be made to their report.
“The Investigative Reporting Workshop found that 67 percent of the wind turbines installed in the U.S. are built by other countries”
No. We reported that of the turbines currently under construction 67 percent are slated to be purchased from a foreign-owned turbine manufacturer. (Update: 11/11/2009: IER updated their report with a corrected use of my numbers.)
The American Wind Energy Association maintains a comprehensive list of wind farms in the U.S. dating back as long as anyone has kept substantial records. With the boom-and-bust-and-takeover-and-merge path of a U.S. wind industry it’s tough to track exactly how many turbines are made in the U.S. and how many arent – there are too many companies that have come and gone.
If anyone is dying to know, contact me, I’ve got the spreadsheets, but haven’t taken the time to clean up all the historical data. It can be done. Or you can check the AWEA’s Web site and make your own spreadsheet.
AWEA
On the other end of the spectrum, the American Wind Energy Association, the chief lobbyist and cheerleader for wind power in the United States, which has issued two general debunkings of the uproar over Chinese turbines coming to Texas and U.S. stimulus dollars going overseas. In their first blog post they attempt to “shine some light” on the Chinese turbine deal. And the second blog post defines a “disconnect” between Washington and Detroit, where the AWEA recently hosted a supply chain conference to try and encourage the development of a U.S. supply chain.(They apparently also told FOX News that the Workshop’s findings were “exaggerated.”)
Like the IER report, there are things that the AWEA hits right on the head, and some other things that miss some key facts that I reported.
“Second, it is not part of a trend. In fact, more turbine parts are being made in the United States than ever. AWEA announced earlier this year that 55 new manufacturing plants were opened, announced, or expanded last year. The U.S. has been rapidly increasing wind manufacturing from less than 25% of turbine value a few years ago to nearly 50% today.”
We found that it (the Chinese turbine deal) is indeed part of a trend.
There has definitely been an increase in manufacturing capacity in the United States, but there has also been an increasing trend in turbines and turbine components coming from abroad. Six years ago there were no Indian-made turbines in the U.S., but so far this year Suzlon, the big Indian turbine manufacturer, has installed 12.9 percent of the turbines in the U.S. It is true that the share of turbines and turbine components made by U.S.-owned manufacturers has increased, but the figures have dropped since 2008, according to my research. Only about 44 percent of turbines installed so far this year were made by an American-owned manufacturer, and of the wind farms that are under construction, only 32.7 percent are slated to be made by an American-owned manufacturer.
A number of foreign-owned manufacturers are hoping to set up shop in the U.S. (as far as I can tell, the only foreign company that builds a turbine, tower and nacelle in the U.S. is Gamesa.) Roby Roberts at Vestas Americas, the U.S. subsidiary of the Danish turbine giant, told me his company plans to have a fully-American made wind turbine by 2011 – but for now they’re importing many of the parts and already manufactured turbines (see the photos attached to our report for evidence of Vestas turbines being hauled from the docks to a wind farm in Maine this summer.) Suzlon makes blades here. Mitsubishi and Siemens, among others, both plan to open something in the next two years.
It will be interesting to see which of these foreign owned manufacturers qualifies for the manufacturing tax credit – the process to acquire that credit is a lot more complicated than the investment tax credit that I found foreign companies were collecting so much of.
Without getting into the bigger issue – does it matter if a facillity is American or foreign-owned, as long as it creates jobs in the U.S. – there is a flip-side of the coin. At least some turbine manufacturing jobs are going overseas, or starting overseas. The only two significant U.S. turbine manufacturers rely on foreign manufacturing for at least some of their components. As I pointed out in my story, GE is in the process of opening a new component manufacturing facility in Vietnam.
“Fourth, the Treasury grants already issued as a result of the have had a significant impact. According to Denise Bode, AWEA’s CEO, “The Recovery Act is now a proven success putting people back to work building wind projects here in the U.S.”…”
Has it?
The money that’s been given out is for projects that were already brought online. All of them were significantly underway before the stimulus bill passed in February. Also, as I wrote about in my story, most of the jobs are created in the manufacturing of the components – and 695 of the 982 turbines that were installed on the 11 projects that recieved stimulus money were built by foreign manufacturers. We asked the administration about this point – first the White House, and then Treasury who we were referred to – and we recieved no response.