Wind lobby responds to critical report about PTC

The American Wind Energy Association (AWEA) responded to a critical report on the federal production tax credit (PTC) by the Institute for Energy Research (IER) by saying that the PTC “more than pays for itself” through carbon-free power and economic development.

The IER issued a report Dec. 2 saying that while some states get a net financial benefit from the PTC, others are net payers. IER estimated that 30 states and the District of Columbia paid more to the federal government in 2012 to support wind subsidies than wind producers in those states received.

AWEA responded in a Dec. 3 “fact check” blog by saying that the “fossil-fuel funded” IER was spreading “misinformation” about wind energy.

AWEA said that the PTC “is far smaller than the cumulative incentives provided to other energy sources, and has been so successful at driving private investment that it more than pays for itself by creating additional tax revenue.”

AWEA said that wind power has generated $25bn in private investment, paying handsomely to landowners and private communities. Every state in the union, including 70% of U.S. congressional districts, has an operating wind project, manufacturing plant, or wind-related jobs, AWEA said.

A congressional deal in January 2013 extended the PTC and stipulated that projects that begin “construction” – as defined by the Internal Revenue Service – by the end of 2013 will still be eligible.

The trade group also said that tax incentives for the energy sector are nothing new, dating back to 1913. A copy of the AWEA blog can be found at: http://aweablog.org/blog/post/fact-check-ier-finds-it-hard-to-kick-habit-of-attacking-wind-power

 

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.