Will the PTC be passed next month?
UNITED STATES: Pressure is escalating in Washington DC because Congress may extend the all-important federal Production Tax Credit (PTC) as soon as February.
Wind power’s eligibility for the tax credit does not expire until December 31, 2012. But if the PTC is not extended in February as part of the payroll tax legislation, Congress will likely only consider it after the 6 November federal and presidential votes.
"The continued indecision over the PTC extension becomes more and more problematic for renewable projects," says Paul Copelman, spokesman for Iberdrola Renewables.
"We are still pursuing selective opportunities in the US," he says."But if we can’t [complete a project] in 2012, we don’t plan on building it in 2013 unless and until a PTC is passed," he tells Windpower Monthly.
That’s because of the narrow construction seasons, complicated construction logistics, and other factors.
The PTC is worth 2.2 cents/kWh for 10 years. Wind projects are only eligible if they produce electricity by December 31, 2012.
Iberdrola Renewables, part of Spain's Iberdrola SA, is the US’s second largest owner of wind projects. It is cutting some jobs already.
