Environmental Engineering Reference
In-Depth Information
critical stakeholders to make informed decisions about how wind energy
contributes to the U.S. electricity supply.”
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At the state level, there is a wide variety of compulsory and voluntary
green purchase programs that are promoted to electricity consumers,
thereby enhancing awareness of the pros and cons of the various energy
technologies. For example, in Washington State, there are seventeen utili-
ties that ofer consumers the chance to designate that their electricity
comes from wind power. Similarly, in Texas, six utilities ofer plans which
allow consumers to purchase electricity from wind power.
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As has been inferred throughout this chapter, the PTC has had an enor-
mous impact on wind power development, particularly over the past ive
years or so. If the estimates by the US Department of Energy are accurate
and wind power generation prices in the United States range between
US$0.03-0.065 per kWh, then a production tax credit of US$0.02/kWh
represents a catalytic subsidy. Indeed, many analysts have commented on
the trend that when the PTC expires, the pace of wind power development
tends to drop of precipitously, and when the PTC is renewed, a rigorous
pace of wind power development resumes.
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Moreover, as was suggested in
the last section, because of the expansionist efect that the PTC has had on
the US wind power market, many irms have relocated to new production
facilities in the United States to conduct R&D. his has created a thriving
wind power sector and has fueled wind power technology innovation, which
in turn has helped reduce the cost of wind energy generation.
Yet the federal PTC has not been suicient in itself to catalyze wind power
development everywhere. As outlined earlier, there are a dozen US states
that do not have wind power programs. Conversely, there are also 15 states
that host over 1000 MW of installed wind power capacity. In short, it is
apparent that state policy has played a major role in inluencing market
development. For most states, the central policy for catalyzing develop-
ment has been the establishment of renewable portfolio standards (RPS).
According to the AWEA, 29 states (plus Washington, DC and territories)
have announced RPS schemes. he establishment of such policies is usually
accompanied by regulatory oversight measures to ensure that the standards
are met. As such, the introduction of an RPS tends to break down any non-
economic barriers that may exist.
he inluence of the state is also felt in national political circles. For
example in August 2011, a coalition of 24 governors entreated the Obama
administration to do more to support the development of wind power by
extending the PTC, fortifying the grid, improving collaboration between
state and federal authorities, improving siting standards, and advocating
more ofshore wind power development.
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As another example, the Western
