Congress Extends Windpower Credit

(Ed. note: We have tried to get the Global Village Idiot to write conventional, insightful energy analyses, including his three decade background at executive levels of the windpower industry. We have nothing against his wannabe-Miller-Joycean rants, but we always felt he should let readers know his serious expertise and experience in matters windkraft. He has resisted this with unearthly strength, thus we are surprised to find the following post in our inbox. And you should take advantage, for we don't know when this insight might appear again.)

The congress of the united states of america, in all its infinite wisdom, has extended a series of renewable energy funding mechanisms. The Production Tax Credit for windpower, currently at $19/MWH for windpower, has been extended to 2008. The upshot of this for windpower business is significant.

The US has been plagued by horrendous boom and bust cycles dependent upon the federal whims, such that the industry could not commit to long term manufacturing facilities, for example, without which further cost-cutting was impossible. Some manufacturers took the risk, others prudently avoided same.

Now the foundation has been set, with the industry stable since the end of 2004. The extension to 2008 means that companies can begin to invest prudently in long term facilities. Investment can begin to flow in more orderly fashion, and project development can begin to take economies of scale.

Further, and more surprising, this will place the US market firmly at the head of the global expansion. It is now very possible that the US will overtake Germany by 2008 with the highest installed capacity. Such expansion will also allow more US investment into US firms entering into the global markets, where they are a decided disadvantage.

Finally, this is evidence of the strength of bipartisan support for windpower in the Congress. That should allow for either strong support of a further long term extension of the PTC, likely for the last time, or a supplanting measure such as a Renewable Portfolio Standard with teeth

As one who has led off some of his global speeches blatantly criticizing american energy policy, stating that america produced in 25 years less than half what Germany produced in 12 years, despite the difference in per capita energy consumption, i'm pleasantly shocked. America is far behind the windpower technology curve, but perhaps they can now join the global industrial community which will force the acceleration to renewables far faster than before... if still not fast enough.