Monday, January 7, 2013

Wind Energy Doldrums in South Dakota

The recent extension of the production tax credit for wind energy reportedly has done little to boost the optimism of wind energy developers in South Dakota. Lack of transmission infrastructure continues to limit the level of capacity that can be accommodated, and developers are finding it difficult to secure long-term power-purchase agreements primarily because of the competition from cheap natural gas. In addition, the South Dakota tax structure provides little incentive for developers to invest in major projects. In November, South Dakota voters rejected a program that would have awarded grants to companies that brought large, capital-intensive projects to the state. Ranked fifth in the nation in wind potential, South Dakota currently has 784 megawatts of rated wind energy capacity. Read more

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