Wind Is In (With the Right Support)
The answer to our country’s growing energy needs is blowing in the wind. The American Wind Energy Association released its latest report on the status of wind industry, which had a banner year:
Installed U.S. wind energy capacity grew nearly 45 percent last year to 16,800 megawatts, or about enough to serve 4.5 million homes, as interest in low-carbon power grew, an industry group said on Wednesday.
Texas remained the top state in both total wind power capacity, which reached with 4,446 MW, and new wind power capacity, the annual report from the American Wind Energy Association said.
But the report emphasizes the fact that wind energy growth is directly related to the availability of the Production Tax Credit (PTC)–the one that the U.S. Senate failed to extend a few months ago. Without the PTC, the wind industry will continue to go through the cycles shown by the graph at the top of this post. From the report:
Despite tremendous progress, wind power’s future remains uncertain… Unstable federal policy (that is, the expiration and extension cycles of the federal production tax credit, the primary incentive for wind power today) has led to costly boom and bust cycles for the industry (note the years 2000 2005). Conversely, consistent availability of the credit dramatically spurs growth (see years 2005, 2006 and 2007) and, along with it, thousands of new jobs and billions in new investment.
Congress must move quickly to extend the production tax credit and other renewable electricity tax incentives. With 116,000 jobs and $19 billion in clean energy investment at risk, the credits are a critical element of a long-term federal policy to support this vibrant, fast-growing industry. Americans, by an overwhelming majority, understand this need and favor such government support.
“With the right public policy, (wind) will be a growing and affordable part of our long term plans,” Dick Kelly, the president and CEO of Xcel Energy Inc., told Reuters.
But with the wrong policy, the wind industry won’t reach its full potential.
Tags: tax credits, wind
April 25, 2008 at 11:42 am
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