Planet Gore

AWEA: Wind Needs Stable, Robust Incentives

We report, you decide.
Over in Hanover, Germany, American Wind Energy Association legislative representative Aaron Severn talks to UPI:

The wind energy industry is beginning to repower existing turbines for greater efficiency and expanding to offshore locations in Europe, and despite unstable incentives for wind power in the United States, strong growth potential and the weak dollar are buoying interest in the U.S. market.
For most firms, the biggest barrier to the U.S. market is the lack of stable incentives.
The Production Tax Credit, which was due to expire at the end of 2007, was renewed in 2006 for one year until the end of 2008. It provides a 2 cent per kilowatt-hour credit to project developers for the first 10 years of operation but has expired three times since it was first created in 1992.
“If it is allowed to expire, the industry and investors worry that growth will fall off — although 25 states and the District of Columbia have their own renewable electricity standards and that could provide somewhat of a cushion,” Aaron Severn, legislative representative for the American Wind Energy Association, told United Press International at the Hanover Innovation Fair from April 21-25.
“That’s an experiment we don’t want to undertake. Very dramatic decreases in the amount of installed wind energy occurred in the past when the PTC expired. Our member companies say that projects would be put on hold and investment would flow into more stable markets if the PTC is not extended immediately,” he said.
“Developers want long-term market stability,” he added, emphasizing the importance of long-term, robust incentives.

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