Wind Power in Spain

The Spanish Model

Similar to other pricing models in Europe, the Spanish model is different from the one pursued by the U.S. government. In the U.S., a national production tax credit provides a tax break for companies for 10 years after a wind farm is established. This production tax credit must be renewed in Congress—and often expires before it can be renewed. Thus, the market in the United States is subject to fluctuations, as developers and manufacturers, on renewal years, wait to see what Congress will decide.

This dynamic played out in 2004, when only about 400 megawatts came on line in the United States. The U.S. market has since picked up speed once again, and projected U.S. wind developments for 2006 are at about 2,500 megawatts. The tax credit is set to come up for renewal again at the end of 2007.

"The Spanish model guarantees the profitability of Spanish companies investing in wind power," said Garcia. "Because of this, major companies in Spain have bet on wind power. Those two factors together—the premiums and the investment from major companies—have contributed to what I would describe as the spectacular development of wind power."

Evolution of the Turbine

Over the past two decades, turbine manufacturers have experimented with different ways of transforming the energy from wind into power. Although models produced have ranged widely in size and shape, the one that has caught on and proved most effective and reliable is the three-bladed vertical model.

Improvements in design and efficiency have allowed manufacturers to construct larger, more powerful models, so that from a few hundred kilowatts of power years ago, turbines can now generate several megawatts.

"The fact that you have much taller wind turbines allows you to put the blades where the wind speeds are higher and more stable," explained Christine Real de Azua, a spokesperson for AWEA. "A larger blade means you have a larger swept area. These factors mean that, though the cost of a single turbine is higher, the output is so much greater."

The standardized shape of wind turbines today, and the general trend towards larger and more powerful individual turbines, demonstrates the maturity of the technology, said Chua of Emerging Energy Research. It also means that individual companies distinguish themselves by incremental developments in technology that allow them to keep costs down, such as reducing the weight of the turbines and increasing their efficiency.