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Leasing Wind Power Facilities: A New Reality

By David G. Mayer and Joel Bannister
February 25, 2011

Electric power generation from wind continues to grow at a rapid pace. Wind is such an abundant natural resource that in a 2010 assessment, the Department of Energy found that the contiguous 48 states have the potential to generate up to 37 million gigawatt-hours (“GWh”) of electricity from wind annually, which is approximately nine times the total U.S. electricity generation from all sources in 2009.

The American Wind Energy Association (“AWEA”) reported more recently that the U.S. installed capacity of electrical wind energy reached 40,180 megawatts (“MW”) at the end of 2010. Texas leads the country in installed wind energy capacity with more than 10,000 MW. The Energy Information Agency estimates (based on the 2009 Census) that the average U.S. home consumes 908 kWh per month (as of 2009). Clearly, wind energy now and in the future can power a vast number of homes in the United States. (A kilowatt (“kW”), MW (10,000,000 kW) or GW (1,000 MW) is an instantaneous measure of power. A kilowatt hour (“kWh”), MW hour (“MWh”) or GWh is a measure of electricity defined as a unit of work or energy, measured as one kW, MW or one GW, respectively, of power expended for one hour.)

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