The American wind power industry is celebrating after the U.S. Senate voted overwhelmingly in favour of extending more than 50 tax policies supporting the construction of new wind farms.
The mood towards wind energy in the USA is in stark contrast to that back home, where the Abbott government’s “wonky” directive that the Clean Energy Finance Corporation (CEFC) cease investing in wind power projects has baffled industry experts and economists.
In a 23-3 bipartisan vote, the U.S. Senate Finance Committee passed a tax extenders bill for 2016. The bill retains language ensuring tax subsidies for wind energy developers continue so long as construction begins while the credits are in place.
Both the federal Production Tax Credit (PTC) and Investment Tax Credit (ITC) expired at the beginning of the year, causing consternation for the sector; as these incentives have been widely recognised as the predominant drivers of wind farm development and have cut the price of U.S. wind power in half.
This was proven in 2013, when the credits briefly expired, causing installations of new wind energy to fall 92 per cent and the loss of 30,000 jobs. When Congress reinstated the PTC the following year, 23,000 jobs were added and the U.S. wind sector finished 2014 with a workforce numbering 73,000 employees.
According to the American Wind Energy Association (AWEA), wind has attracted over $100 billion in private investment for the U.S. economy since 2008 and the vast majority of Americans (84 per cent) want domestic wind power production to receive more or the same emphasis as other sources of energy.
“This is a big step in the right direction,” said Tom Kiernan, CEO of AWEA. “We applaud the committee’s vote because it recognizes that the vast majority of American voters support these policies and want them continued. We urge the full Senate and the House of Representatives to follow the Senate Finance Committee’s bipartisan lead, and quickly pass this tax extenders package, which will continue to grow American jobs and heavy manufacturing, and support rural economic growth.”
Total U.S. installed wind capacity at the end of fourth quarter of 2014 stood at 65,879 MW – enough to power 18 million homes. More than 48,000 utility-scale wind turbines are now operating in the USA.
