Environmental Engineering Reference
In-Depth Information
987 as several major manufacturers faltered or went into bankruptcy. However, the existing
California stock of more than 6,000 turbines assured a substantial business in wind turbine
operations and maintenance.
Energy Policy Act of 1992
In 992, comprehensive energy legislation called the
Energy Policy Act
(EPAct) con-
tained a key provision for a PTC
.
This provision gave wind power producers a $0.05/kWh
tax credit (adjusted for inflation) for energy produced during the first 0 years of operation.
In 2008 the value of the PTC rose to $0.020/kWh. EPAct did little to foster new wind in-
stallations until just before its expiration in 999. Nearly 700 MW of new wind generation
were installed in that year, more than in any previous 2-month period since 985. The PTC
was later extended for two brief periods, ending in 2003, and then reinstated in late 2004 and
extended again in 2008. This intermittent policy support led to only sporadic growth. In ad-
dition, business inefficiencies inherent in serving an intermittent market inhibited investment
and increased the cost of project financing.
Current Incentives
In the United States a variety of additional incentives have been implemented. In many
cases these incentives are additive, meaning that a project may benefit from a combination of
federal, state, and local incentives. Table 4-3 shows a matrix of the various incentives and their
beneficiaries. It should be noted that most energy technologies deployed in the United States
now receive a plethora of incentives.
Table 4-3.
Beneficiaries of Government Financial Incentives for Developing Renewable Energy
in the U.S.
Incentive
Beneficiary
Utilities
Independent
Power
Producers
Public
Power
Rural
Electric
Coops
Manufacturers
Individuals
and
Businesses
Federal Incentives
Production Tax
Credit
X
X
X
Renewable Energy
Production Incentive
X
X
2002-8 Farm Bills
X
State and Local Incentives
Green Power
Purchasing Choices
X
X
X
Green Tags
X
X
X
Renewable Portfolio
Standards
X
X
X
X
X
Land Use and Tax
Breaks
X
X
X
X
Net Metering
X
Property taxes, sale tax waivers, and tax holidays
Search WWH ::
Custom Search