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The United States of Amurka, in all its collective wisdom, has extended the Production Tax Credit given to windpower for another year.

Vestas, Gamesa Rise After U.S. Extends Wind-Power Tax Break (bloomberg version)

The markets have reacted favorably, even though significant damage has already been done by not extending it 6 months ago, or earlier. I can not write how much of the supply chain has been decimated already, not to mention the hits to major US OEMs.

Vestas is even saying that the extension will have little effect on its current 2013 output projection of 5 GW globally.

This one year extension could perhaps add another 4- 8 GW to the ridiculously low projection of 1.5 GW for 2013, accent on the 4 GW side. The extension will only be effective if sometime in the next two quarters, it is extended further, or something similar put in place. Period.

Concurrently, the industry is still under attack in Yurp as well.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin

by Crazy Horse on Wed Jan 2nd, 2013 at 02:29:12 PM EST
As noted in the other thread, the only good news here is that the trigger for the PTC is the start of construction and no longer the connection to the grid, which will give projects a better chance of reaching the milestone before the next "wind cliff" at the end of the year.

Wind power
by Jerome a Paris (etg@eurotrib.com) on Wed Jan 2nd, 2013 at 04:52:42 PM EST
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I'm waiting to hear the definition of "commence construction," and for how long you have after you qualify to complete the project.

Most colleagues are saying it will help 2014 project development, and even some help for 2013. But supply chain order books should might be strengthened.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin

by Crazy Horse on Wed Jan 2nd, 2013 at 05:14:31 PM EST
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I'm getting word that the text references TBD rulemakings from the IRS. Likely months, so less helpful than thought, as decision-making will be deferred by project developers.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin
by Crazy Horse on Wed Jan 2nd, 2013 at 06:23:01 PM EST
[ Parent ]

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