U.S. Wind Power Sees Record '08; '09 Likely to Bring Harder Times
Source: Seeking Alpha, Greentech Media (1/29/09)
". . .last year saw a 50% increase in the nation's wind power resources for a total of 25 gigawatts, enough to power approximately 7 million homes."
That's the news from the American Wind Energy Association (AWEA), which says last year saw a 50% increase in the nation's wind power resources for a total of 25 gigawatts, enough to power approximately 7 million homes.
Last year's growth represents an investment of $17 billion, and made up about 42% of the total power-generating capacity the country added last year, AWEA reported. The U.S. overtook Germany last year to become the world leader in wind power. But last year's record growth came before the economic downturn and credit crisis dried up financing for massive wind power projects, AWEA's CEO Denise Bode said in a prepared statement.
And like other renewable energy producers, the wind power industry is asking the federal government for help. Wind power projects can receive a tax credit for the energy they produce, and that so-called production tax credit was extended through 2009 in an energy package passed by Congress in October.
The stimulus bill working its way through Congress now contains language that would extend the production tax credit for wind power for three years. However, wind power developers say that tax credits have become far less useful as an investment incentive because so many Wall Street banks and other traditional renewable energy investors have lost money in 2008, and thus don't need to offset taxable income.
But the stimulus bill may help fix that problem by allowing wind power developers to claim investment tax credits in lieu of credits for producing power, along with a possible shift to direct payments to investors in renewable energy - a combination that renewable energy developers are lobbying furiously for.