Wind power capacity increased by 8,558 MW in the U. S. last year, according to a new report released by the US Department of Energy.

Energy Secretary Steven Chu announced the release of DOE’s 2008 Wind Technologies Market Report, detailing $16 billion in investment in wind projects made in the U.S. in 2008 – making the U.S. the leader in annual wind energy capacity growth, as well as cumulative wind energy capacity.

The Department stated that the US emerged as the fastest-growing wind power market in the world for the fourth consecutive year.

The US led the world in wind capacity additions, capturing roughly 30% of the worldwide market. At the end of 2008, cumulative wind power capacity in the U.S. stood at 25,369 MW, ahead of Germany’s 23,933 MW. In the US, the cumulative wind capacity installed at the end of 2008 would, in an average year, be able to supply roughly 1.9% of the nation’s electricity consumption.

The pace of utility-scale wind development in 2008 was more than 60% higher than the previous U.S. record of 5,249 MW, set in 2007. To date, all wind power installations in the U.S. have been onshore, though there are now 11 “advanced-stage” offshore wind project proposals totaling more than 2,000 MW in various phases of development in U.S. waters.

Wind power contributed 42% of all new US electric generating capacity in 2008. This contribution is up from 35% in 2007, 18% in 2006, 12% in 2005, and less than 4% from 2000 through 2004..

For the fourth consecutive year, wind power was the second-largest new resource added to the U.S. electrical grid in terms of nameplate capacity, behind natural gas plants, but ahead of new coal.

Rising demand for wind has spurred the expansion of wind turbine manufacturing in the U.S. As a result of this continued expansion, the American Wind Energy Association estimates that the share of domestically manufactured wind turbine components has grown from less than 30% in 2005 to roughly 50% in 2008, and that roughly 8,400 new domestic manufacturing jobs were added in the wind sector in 2008 alone.

Texas led all states with 7,118 MW of total wind capacity installed, followed by Iowa (2791 MW) and California (2517 MW). Seven states now have more than 1,000 MW installed, and 13 have more than 500 MW.

Iowa and Minnesota have the highest levels of wind penetration (in-state wind generation as a percentage of all in-state generation). Seven states have wind penetration levels greater than 5%; six utilities have in excess of 10% wind on their systems.