Welcome!

News Feed Item

Better Late Than Never: PTC Extension to Result in Fewer Windfarms Developed in 2013, an Industrial Info News Alert

SUGAR LAND, TX -- (Marketwire) -- 01/04/13 -- Researched by Industrial Info Resources (Sugar Land, Texas) -- The U.S. Congress agreed to extend the federal Production Tax Credit (PTC) for wind power owners for a year as part of its 11th-hour negotiations to avert falling off the so-called "fiscal cliff."

Less than 24 hours after the measure won overwhelming support in the U.S. Senate, the House of Representatives approved the bill by a bipartisan vote of 257-167. Eighty-five Republicans joined 172 Democrats in voting to support the measure, which President Barack Obama was scheduled to sign Tuesday. Voting against the bill were 151 Republicans and 16 Democrats.

With the PTC extension in place, Industrial Info predicts that only 3,000 to 4,000 megawatts (MW) of new wind power could reach commercial startup by the end of 2013, said Shane Mullins, Industrial Info's vice president of product development for the Power Industry. Last year, as much as 12,000 MW of new wind generation came online, beating the amount of new gas-fired generation, he noted. Further, Mullins estimates that between 8,000 and 8,800 MW of new wind generation could reach the construction stage in 2013, with construction and operations extending into 2014.

"Following the boom in wind power commercial startups in 2012, it is now likely that the U.S. wind industry has the necessary federal support needed to keep project development alive in 2013," Mullins said in an interview. "The new PTC extension includes all projects that start construction in 2013 and reach commercial startup in 2014, an important departure from previous PTC extensions, which were based on a commercial startup deadline."

Mullins continued: "An extended PTC puts the onus on wind power developers to quickly revisit and reactivate the project pipeline, which has been on hold for a while as companies focused on completing projects by year-end 2012. Projects that could not be completed by year-end 2012 were placed on hold. Now, those projects need to be revived and reviewed for viability."

The New Year brings new challenges to the windpower industry. "Once again, project developers will be scrambling to meet a new deadline," Mullins said. "Many factors are likely to prevent a repeat of last year's record level of project development. For one, many utilities are ahead of the curve on meeting their state Renewable Portfolio Standards, which mandate a certain percentage of electricity come from renewable sources by a specific year. In addition, many bankable projects that were being developed for a 2013 kickoff were moved into 2012, to take advantage of the PTC."

Another challenge: many developers and equipment manufacturers slashed staff and placed projects on hold, owing to the uncertainty in 2012 about any extension of the PTC. "Developers and manufacturers need time to gear up, so the new PTC extension will be largely felt in the second half of 2013 and will not repeat what happened in 2012, when new development dropped sharply in favor of finishing projects that could operate commercially by December 31, 2012."

In retrospect, Mullins said, 2012 will go down as a year of record U.S. wind power development, based on the amount of projects completed and the number of megawatts that were brought into commercial operation.

The one-year extension of the PTC was part of a package of tax extension measures. The extension will cover all wind projects that begin construction in 2013. Wind power owners will receive a tax credit of 2.2 cents per kilowatt-hour of electricity generated from new windfarms for a 10-year period that starts when the unit achieves commercial operation.

According to the U.S. Energy Information Administration (EIA) (Washington, D.C.), new wind generation accounted for 44% of all new electrical generating capacity in the U.S. in 2012. Natural gas accounted for about 30% of all new generation, the EIA said.

Industrial Info provides an online database for the Global Renewable Energy Market. Coverage includes wind energy, geothermal, hydroelectric, landfill gas-to-energy and utility-scale solar power plants, with detailed information on the companies that own and operate plants, key management contacts, and plant and unit profiles, along with reported activities related to unit outages and major capital and maintenance projects. In North America, Industrial Info is currently tracking more than 400 wind energy projects valued at $125 billion scheduled for construction start in 2013 and 2014. For more information, contact Industrial Info at 1-800-762-3361 or click here.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the www.industrialinfo.com "Contact Us" page.

Add to Digg Bookmark with del.icio.us Add to Newsvine

Contact:
Joe Govreau
713-783-5147

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
StackIQ has announced the release of Stacki 3.2. Stacki is an easy-to-use Linux server provisioning tool. Stacki 3.2 delivers new capabilities that simplify the automation and integration of site-specific requirements. StackIQ is the commercial entity behind this open source bare metal provisioning tool. Since the release of Stacki in June of 2015, the Stacki core team has been focused on making the Community Edition meet the needs of members of the community, adding features and value, while ...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
Deploying applications in hybrid cloud environments is hard work. Your team spends most of the time maintaining your infrastructure, configuring dev/test and production environments, and deploying applications across environments – which can be both time consuming and error prone. But what if you could automate provisioning and deployment to deliver error free environments faster? What could you do with your free time?
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...