With tax credit in doubt, wind industry ponders future
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UPDATED 9/28/2011 Minnesota wind developer Dan Juhl has seen the scenario before.The wind production tax credit – seen as a key incentive to bringing new wind energy projects online – nears its expiration date, expires without legislative action and then comes barreling back, reviving the industry after a period of stagnation.It’s a sequence of events that has played out three times in the last decade, most recently in 2003, and is unfolding again today. The current tax credit, which provides developers with 2.2 cents per kilowatt-hour for electricity produced from utility-scale wind turbines, is set to expire at the end of 2012.Industry officials have called for a long-term extension, but so far no action has been taken. Senate Majority Leader Harry Reid, D-Nev., recently said he was “not confident” it would pass given the mood in Washington, and wind energy proponents said they would not hazard to guess at its fate.You would think that Juhl, the chairman and chief executive at Juhl Wind Inc., would be carefully tracking the issue. His company is behind four of the 15 new wind energy projects expected to come online in Minnesota before 2012, and has longer-term ambitions.But Juhl said he no longer relies on the whims of Congress when thinking about the future. The need for alternative energy, he said, is simply too strong to be tempered by tax policy, he said. Continue Reading

