According to a new report from the American Wind Energy Association (AWEA), the American wind industry is rebounding. During 2014, there was four times more new wind energy installed or coming online than in 2013. There was 4,850 MW in generating capacity installed with total installed capacity increasing by eight percent to 65,875.
However, AWEA notes that this amount still falls short of the record 13,000 MW installed in 2012 and blames failing to reach the record due to federal policy uncertainty. The renewable energy Production Tax Credit (PTC) was only extended for two weeks at the end of last year, and has now expired again. Tom Kiernan, AWEA CEO notes that every other energy source receives some type of tax relief and wind should not be, well, left in the wind.
“Wind is gaining strength, but as recent history shows, we can do a whole lot more,” said AWEA CEO Tom Kiernan. “We’re looking forward to working with Members of Congress from both sides of the aisle so that a reasonable, responsible tax policy is in place that allows the wind industry to continue lowering costs and investing billions of dollars in U.S. communities.”
Jonathan Weisgall, Vice President for Legislative and Regulatory Affairs of the Berkshire Hathaway Energy Co., told reporters that the $1.9 billion wind farm his company is building in Iowa is the largest economic development project in the state’s history. When finished, it will pay farmers $3 million a year for land leases, and supply customers such as Google, Facebook, and Microsoft that have committed to buying clean energy.
“Our customers want wind,” Weisgall said. “We like wind because it’s a hedge against fossil prices…and wind, with no fuel costs associated, can keep those rates stable.”
The PTC provides a tax credit of 2.3 cents per kilowatt-hour generated for the first 10 years of a project’s life. It has encouraged $125 billion dollars of investment across America, creating 500 U.S. manufacturing facilities and technological innovations that lowered the wind power’s costs by more than half in the last five years. Continue reading