January 2005

Pennsylvania set to generate 3,600 megawatts of wind power by 2016

Boulder, CO— The Pennsylvania legislature passed SB1030, the Alternative Energy Bill, on November 20, 2004 which will require a total of 18% of Pennsylvania’s electricity to be generated by alternative energy sources by 2020.

The standard requires 8% of Pennsylvania’s electricity to be generated by so-called “Tier I” renewable sources of energy by 2020. Tier I resources include solar, wind, geothermal and biomass. The standard also requires 10% of the state’s electricity to come from a second category of resources that include waste coal, integrated combined coal gasification technology, municipal solid waste, large-scale hydro, demand-side management and distributed generation systems.

According to research by Platts’ Analytics group, Pennsylvania will develop 3,600 megawatts (MW) of new wind energy capacity to meet the Tier I requirements of the new standard. The new wind capacity will join 129 MW of wind capacity already generating in Pennsylvania. SB1030 requires over 250 MW of new solar capacity by 2016, and Platts anticipates that Pennsylvania will also develop smaller amounts of new landfill gas generation, animal waste- based generation, and low-impact hydro generation to meet the Tier I requirements of the standard.

“With the passage of SB1030, Pennsylvania is poised to become a major developer and exporter of renewable power,” said Jack Ihle, energy analyst at Platts and author of Platts’ forthcoming Renewable Power Outlook. “Renewable portfolio standard laws in neighboring New York, New Jersey, and Maryland were likely to create strong demand for Pennsylvania renewables even before the new law was passed.”

According to Platts analysis, SB1030 will drive up mid-Atlantic demand for renewables and could tighten these markets as renewable standard laws are implemented over the next several years.

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