Wind capacity waiting for government incentive
WASHINGTON, DC, US, 2004-08-18 (Refocus Weekly)
More than 2,000 MW of wind energy projects across the United States are stalled, pending renewal of the federal tax incentive.
New projects worth US$2 billion are on hold waiting for the expected renewal
of the production tax credit, says the American Wind Energy Association in its
quarterly market outlook. The 2,000 MW of new capacity could power more than
half a million American homes.
The proposed windfarms would provide “millions of dollars of badly-needed tax
revenues and hundreds of skilled jobs to rural counties around the nation,”
says executive director Randall Swisher, who lists a number of windfarms waiting
for Congress to renew the PTC that expired at the end of 2003. Each of the
projects could produce economic and environmental benefits in their communities,
and he says his list is “a fraction” of the projects ready to proceed.
“If the wind industry were to consistently grow at a rate of 18% per year, 6%
of the nation’s electricity could be generated by wind power by the year 2020,
resulting in over $100 billion of investment,” AWEA estimates. “Over the
last five years, U.S. wind capacity has expanded at an annual average rate of
28%, showing that the supply chain can ramp up quickly to meet the nations power
needs.”
“Without a PTC extension, however, the U.S. will likely see very few new
installations this year,” it adds.
The Colorado Green windfarm installed last year is an example of the benefits
that wind energy development can bring to rural areas, says Swisher. Since the
facility was built, a “chain reaction of economic development” has added
jobs, royalty payments for property owners, and sharply-increased local and
county tax revenues. The windfarm generates green power for 52,000 homes.
Construction of the facility involve many companies and, at the height of
construction, 400 workers were involved. Property owners will receive $3,000 to
$6,000 a year for each of the 108 turbines, and the project has created 15 to 20
full-time local jobs.
The U.S. wind industry installed a near-record 1,687 MW last year, but most new
projects are on hold because of the uncertainty created by Congress’ delay in
renewing the incentive, says AWEA. The industry has installed 30 MW of new
capacity so far this year, and only 350 MW is expected by the end of this year.
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