in News Departments > New & Noteworthy
print the content item



The delay in the extension of the federal production tax credit (PTC) for wind has resulted in zero commissioned wind projects in the U.S. for the second quarter. In fact, the American Wind Energy Association (AWEA) reports that only a single GE 1.6 MW wind turbine - located at North Dakota's Lake Region State College - has been commissioned in the nation so far this year.

The uncertainty over the PTC - which was technically allowed to expire Dec. 31 last year before being extended on Jan. 2 - has had serious consequences for developers and suppliers. With project timelines for wind farms spanning 18-24 months, the impact continues to be felt well into 2013.

Elizabeth Salerno, AWEA's director of industry data and statistics, tells NAW that the slowdown now being felt this year was expected as early as last summer as Congress deliberated an extension.

"We knew that there would be a gap in project development this year," Salerno states. "The first- and second-quarter numbers are a clear demonstration that the wind industry is still feeling the effects [of the late PTC extension]."

She adds that wind turbine manufacturers and component suppliers have been particularly affected, as most are still waiting for orders.

According to AWEA, approximately 950 MW of installed capacity was under construction in the U.S. during the second quarter, bringing the total year-to-date amount under construction to approximately 1.3 GW.

Despite the sluggishness, Salerno notes that it appears brighter days are ahead.

"We've seen a lot of new procurement from utilities, which are locking in long-term rates at competitive prices," Salerno says, noting that more than 20 requests for proposals (RFPs) have been issued. Another "clear signal" is that some utilities are signing contracts for even more megawatts than what they sought in their initial RFPs.

Taken together, U.S. utilities announced plans for nearly 5 GW of installed capacity for the first six months of the year.

AWEA notes that project construction is under way across eight states, and 2013 power purchase agreements have been signed in 11 states, with the bulk of recent activity occurring in the central region of the U.S. Wind projects in California, Michigan and New York are also being supported through strong state policies and competitive prices, the association adds.

Tom Kiernan, AWEA's CEO, notes that the current low level of installs should serve as a cautionary tale against future policy delays.

"The late PTC extension has caused serious harm," he says, "and we urgently need policy stability going forward for the American wind energy industry to reach its full potential."

Mortenson Construction_id2024

Trachte Inc._id1770
Latest Top Stories

Canadian Wind Industry Urges For More Federal Support

The Canadian Wind Energy Association says the country's federal government, once a big industry supporter, should again back wind power.


Wind And Solar Helped California Grid During Challenging Summer

According to the California Independent System Operator, the state suffered from heat waves and drought this year, and wind power played a "significant role" in keeping the lights on.


Recapping The Wind Industry's Third-Quarter Deals

Mercom Capital Group recaps investment and merger and acquisition activity during July, August and September.


Yearly Installed Capacity Figures Already Beat 2013 Numbers, More Wind On The Way: AWEA

While the American Wind Energy Association (AWEA) lobbies Congress to extend the production tax credit, the association notes wind projects now under construction signal a vibrant 2015.


Yahoo Inks Contract To Buy Kansas Wind Power

The Internet company plans to log in to the Alexander wind project, which is being built by community developer OwnEnergy.

Renewable NRG_id1934
Hybrid Energy Innovations 2015
BG 2015DblBox_id2032
Canwea_id1984