Report sees a wallop to wind power if tax credit ends
Aug 14 - Simone Sebastian Houston Chronicle
Wind energy is powering new investments in domestic
manufacturing, but the impending expiration of a federal tax
incentive is threatening the trend, the U.S. Department of
Energy says in a report out Tuesday.
Amid election year debate over the wind industry's
20-year-old federal tax credit, the Energy Department touts the
economic benefits of the incentive in a commissioned analysis
authored by the Lawrence Berkeley National Laboratory.
About two-thirds of the equipment installed on new U.S. wind
farms in 2011 came from domestic manufacturers, according to the
report. That compares with an estimated 35 percent in 2006.
Further, in 2004, General Electric was the only manufacturer
assembling wind turbine nacelles -- the generator housings -- at
utility scale in the U.S., according to the report. Now eight of
the nation's Top 10 turbine suppliers have at least one
manufacturing facility in the U.S.
Several companies across the wind power supply chain,
however, have announced scale-backs in U.S. staff and production
because of uncertainty surrounding the federal tax incentive.
The wind production tax credit, which gives a 2.2-cent tax
break for every kilowatt-hour of power produced, expires at the
end of this year.
Disagree on credit
Critics of the credit, including Republican presidential
candidate Mitt Romney, say the wind industry should be able to
stand on its own without the government subsidy.
President Barack Obama continues to support it.
Last year, wind turbines powered nearly a third of the new
electricity generation capacity built in the United States,
growth driven by government incentives, as well as by declining
costs and improving performance of wind power technology, the
report noted. And 16 percent of the wind power installed in 2011
worldwide was in the U.S., second only to China.
State production rises
Texas wind power generation capacity grew by 3 percent to
10,394 megawatts in 2011, allowing the state to maintain its
spot as the nation's biggest wind power producer, by far.
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