DC: The wind industry has benefited immensely from falling costs, but the phaseout of a federal tax credit will likely derail the proliferation of wind projects across the country.
The price to generate electricity via wind turbines has declined in recent years. The national average was around $70 per megawatt hour in 2009, according to the U.S. Department of Energy. The average price now stands at $20 per megawatt hour — a $50 decline over eight years.
Plummeting costs have resulted in expansive growth for this renewable source of energy. Wind, which made up slightly more than 2 percent of the U.S.’ total electricity generation in 2010, increased to 6.3 percent in 2017. Development is higher in the middle of the country, where utilities have been able to capitalize on the more windy Rocky Mountain region.
However, much of this growth is attributed to the production tax credit (PTC), a federal incentive for wind energy production that is paid for by the American taxpayer.
Currently, the PTC provides a $0.024 per kilowatt hour credit for wind generation. This rate is due to decrease incrementally, with the PTC dropping 60 percent of its current value in 2022 and then another 40 percent in 2023. Analysts predict this rate change will have a negative effect on the industry.
“Energy analysts project that annual wind power capacity additions will continue at a rapid clip for the next several years, before declining, driven by the five-year extension of the PTC and the progressive reduction in the value of the credit over time,” read a report authored by the Lawrence Berkeley National Laboratory. “Forecasts for 2021 to 2025 … show a downturn in wind capacity additions in part due to the PTC phase-out.” more here
If it weren’t for that darned Donald Trump, the whole country would be running on wind and solar by now!
Any plan that requires subsidies is a bad plan.
“Speaking the truth in times of universal deceit is a revolutionary act.” Geo. Orwell
But a positive effect on the economy in general: subsidizing an industry that cannot sustain itself in a more-or-less free market is a mis-allocation of capital. Meaning that the capital resources would be more profitably invested elsewhere.
Those towers and transmission lines are a blight on the landscape.
Texan — Exactly right! An eyesore blight and a bird-killer – by the tens of thousands.
Hope that the tax phase-out will lead to major dismantling of them. Usually most of them are not operating anyway, just standing there and promoting environmental ugliness.
How stupid are Democrats, putting all subsidies into production – RATHER THAN “research” — which is what is needed to make it competitive.
Loretta – A God awful, mind numbing hum, birds being chopped up, and eyesores across the landscape, are minor issues when “It’s the Environment, Stupid!” We have to make sacrifices, up to and including destroying the environment if we’re going to save it! Omelets and eggs, know what I mean?
Please don’t forget the poor bats that are also being killed by these monstrosities. They fly by night. Right into these killer blades.
So that’s really why Butt hurt Gore wants President Trump to resign the elimination of golden goose taxpayer subsidies!
You mean the change in support will cause a reduction in winds? Does that mean less hurricanes and tornadoes?
@Dogbert:
Well said.
Whenever I hear that smug “eggs and omelets” line, I always respond with (paraphrased for the circumstances), “I’ve seen a whole lot of broken eggs, asshole, but nobody has ever shown me an omelet. Where’s the freakin’ omelet?!”
(I wish I had come up with that retort myself, and I wish I could remember where I first heard it.)
don’t forget Solar crispy-fries birds in flight … guess that’s an improvement … cut out the middle-man for KFC
It’s all us Trumpsters’ fault. We killed off all the unicorns!
These atrocities need to lose any and all subsidies. Stop this madness.
Shitloads of the things in west TX – they’re kind of decorative, since there isn’t another fucking thing to see out in that god-forsaken place besides flat ground, cotton fields and oil wells.