Minnesota has overtaken Iowa for third place among states in terms of total installed wind power capacity, with Minnesota having 1,299 megawatts of capacity and Iowa having 1,273, according to the American Wind Energy Association’s latest report.

Last year was a record-setting year for the United States, with 5,244 MW installed in 2007, increasing the nation’s wind power generating capacity by 45 percent. The industry also injected more than $9 billion into the economy, the AWEA said, and now accounts for slightly more than 1 percent of the nation’s total electric supply.

The AWEA’s initial estimates indicate that 2008 could be just as strong in the installation of new wind power capacity. Iowa has 116.7 megawatts under construction, compared with 46.4 megawatts in Minnesota. Texas is by far the leader with 4,356.35 MW of existing capacity and 1,238.28 MW under construction.

Developers report that with strong demand for wind power, wind turbines are sold out for the year. However, that could change as more turbine manufacturers come into the market. At least 14 new manufacturing facilities opened or were announced last year. In his Condition of the State speech this week, Iowa Gov. Chet Culver said five wind generation manufacturers recently decided to locate or expand in Iowa and Iowa is one of two states that manufacture the three major components of a windmill: towers, turbines and blades.

However, much of the industry’s growth across the nation relies on extending the federal production tax credit, the AWEA said. “The PTC and tax incentives for other renewable energy sources are now in danger of lapsing at the end of this year – and at the worst moment for the U.S. economy,” AWEA Executive Director Randall Swisher said in a press release. “The U.S. wind industry calls on Congress and the president to quickly extend the PTC – the only existing U.S. incentive for wind power – in order to sustain this remarkable growth along with the manufacturing jobs, fresh economic opportunities and reduction of global warming pollution that it provides.”