Market forces working against renewable energy

By Barbara Vergetis Lundin

The on-again, off-again nature of U.S. energy tax incentives and the uncertainty over federal spending on research and innovative technology presents a major challenge to the wind energy industry and other alternative energy industries, said Sen. Jeff Bingaman speaking at the opening session of the Sandia National Laboratories Wind Turbine Blade Workshop.

Market forces are working against alternative energy, according to the Chairman of the Senate Energy and Natural Resources Committee, who is retiring at the end of the year, and it has been difficult getting consensus in Washington on how to use spending, tax incentives and regulations on renewable energy.

Some members of Congress oppose tax incentives and direct spending on clean energy because of concerns about budget deficits and opposition to government involvement in the market. Bingaman does not expect an extension of production tax credits which expire at the end of this year.

"That's not a good way to make tax policy. It does not give developers and businesses the assurance they need to make plans and investments for the long-term," he said.

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