“The US Treasury estimates the PTC will cost taxpayers $40.12 billion in the period from 2018–2027, making it, by far, the most expensive energy subsidy under current tax law.”
“After billions in public hand-outs, the wind industry has never been able to stand on its own and there’s no reason to believe this will change. Tax credits are now a required component of the industry’s economics. The outcome of an expired PTC is evident: wind installations will crawl to a near stop.”
Just twelve months after the PTC phase-out [1] went into effect, the wind industry boasted that thousands of new megawatts were under construction or in advanced stages of development. Confirming specifics is challenging since the industry tends to bloviate, but reports put the number of safe-harbored turbines between 30 and 70 thousand megawatts with the majority expected to be in service before the end of 2020.…
“Georgetown is paying dearly for its surplus energy. With annual demand growing at roughly 3% per year, it could be 15+ years before the City’s consumption begins to match its contracted supply.”
“Accepting accolades for signing long-term contracts is easy. Now Georgetown consumers deserve honest answers about what to expect in the coming years.”
Georgetown, Texas, just 30-miles north of Austin, earned international acclaim after announcing its transition to a 100% renewable energy portfolio. Since mid-2018, all electricity consumed by the City, its residents and businesses, is sourced from a combination of wind and solar plants operating in the state. Georgetown Mayor Dale Ross, a CPA, touted the decision as a “no-brainer” grounded in economics and long-term strategic planning. For Ross, wind and solar were cheaper, more reliable, and the way of the future.…
“Wind projects most at risk by the new tax bill are those that negotiated their finance package in the last two years based on a 35 percent corporate tax rate. Renegotiating these agreements, if possible, could result in higher debt assumed for the project, higher prices for the electricity sold, and pressure to lower build costs … to put the financial viability of the project at risk.”
As previously cited, the wind industry is reliant on tax-equity investors willing to accept tax credits in return for funding significant percentages of their project costs. Tax-equity financing is complex; altering one or more elements of an investment package could undermine the success of a wind project.
Despite Congress’ decision to leave the wind PTC phase-out unchanged in the final tax bill, other changes in the law might upset plans for some projects.…