Friday, December 14, 2012

AWEA Proposes Six-Year PTC Phase-Out

In a letter to Congressional leaders this week, the American Wind Energy Association CEO Denise Bode proposed a phase-out of the production tax credit for wind energy that would occur over a six-year period. The specifics of the plan were detailed in the letter as follows...

"The industry has undertaken an extensive analytical effort to determine what level of the PTC over a specific number of years would be needed to keep the industry minimally viable.  The analysis assumed that the industry would meet ambitious technology-improvement and capitalcost targets.  Analytical results indicate that a PTC beginning with 2.2 cents per kilowatt-hour, or 100% of the current level for projects that begin construction in 2013, followed by 90%, 80% 70%, 60%, and then 60% of the current level for projects that are placed in service in years 2014 through 2018, with no PTC in 2019 or afterwards, would sustain a minimally viable industry, able to continue achieving cost reductions."

Source: AWEA

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