Bill Opalka | Nov 23, 2010

The wind industry is putting on a brave face. It says that the results midterm election translate into support for renewable energy. At the federal level, the American Wind Energy Association (AWEA) is pushing for an extension of tax incentives.

Denise Bode, CEO of AWEA, is still hopeful the industry can maintain policies that are in place and even expand on its legislative priority, a national standard for the procurement and sale of clean electricity.

Despite the odds, the industry is holding out hope that Congress will consider parts of a renewable electricity standard (RES.) AWEA hopes the RES can be handled as one of the "chunks" of energy policy referred to by political leaders last week, rather than have it in an overarching bill that gets bogged down in political stalemate.

The prospects of a major bill are doubtful, renewable energy lobbyists concede.

"The RES is going to be one of the things that are going to be a long-term commitment," Bode says.

The financial incentive of the so-called cash grant program is a short-term priority, as that program requires that renewable energy projects start this year. Wind has seen its new projects drop to 2007 levels with policy support languishing in Washington.

But as Elizabeth Salerno, the AWEA director of industry data and analysis allowed, wind is counting on the states to be the places where policy action will continue to reside. Thirty-seven states now have utility-scale wind projects.

Bode said the state are the laboratories for continued policy development and support. She said the switch of many statehouses to Republican control is not a concern.

"Wind has had some great opportunities at the state level," she said. "The changes will be good for wind because the people who are coming in are focused and very concerned about reducing taxes and creating jobs, which is what we're all about in the wind industry."

"Were hopeful that the changes in the states mean that we'll have even more support for economic development.," she added.

The industry is still hopeful for an extension of the Section 1603 Treasury cash grants program that propped up the industry during the depths of the recession. Bode said a memo discussing extension of the grants has been circulating in the White House.

AWEA is hopeful for extension of the production tax credit, which has been supported by both parties since its inception.

What happens in the lame duck session later this month will be the first clue. The politics of 2011 will be the second.

This story first appeared in RenewablesBiz and was written by its editor, Bill Opalca.

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