North American Windpower: Iberdrola To Suspend New Construction On Wind Farms If PTC Expires

Iberdrola To Suspend New Construction On Wind Farms If PTC Expires

by Laura DiMugno Tuesday January 31 2012

Another major player in the U.S. wind industry is feeling the effects of policy uncertainty: Portland, Ore.-based Iberdrola Renewables will suspend new construction on wind farms if the wind energy production tax credit (PTC) is not extended, company spokesperson Paul Copleman told NAW.

Iberdrola will still pursue "selective opportunities" in the U.S., Copleman said, but any projects that are not built this year will likely get the ax if the PTC expires.

"If we can't build it in 2012, we don't plan on building it in 2013, unless and until a PTC is passed," he said.

Nonetheless, the company will continue work on projects that are already in the advanced stages of permitting, especially if they are located in strong markets. Projects that rely on short construction seasons - such as those located in colder climates - as well as other factors that complicate construction, however, face a harsher reality if Congress does not pass PTC legislation, Copleman noted.

The decision to suspend new construction is not the first move Iberdrola has made in reaction to policy and market uncertainty. The company confirmed last week that it recently laid off 50 of its U.S. employees, and last March, it cut its 2012 U.S. development forecasts from the 1 GW to just 350 MW.

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