Under the current rules, a lapse in the credit will not have much immediate effect, since many projects are now in the early stages of development.
However, executives said, developers are unlikely to start any projects without a credit in place because they cannot compete with power generation from other sources like cheap natural gas. And with prospects for a redesign of the whole tax code looking dim at the moment, clean-energy advocates are calling for yet another extension of the subsidy.
Referring to the credit, Kevin A. Lynch, managing director of external affairs at Iberdrola Renewables, which develops and operates green energy projects, said: “In the near term, projects that do not have the P.T.C. attached to them are probably difficult to justify economically for buyers to purchase, and therefore for us to build.”
He added that with the credit, “Wind has clearly become a very competitive generation source, and I do have to say we’re pretty confident that the president and the Congress will see their way to extending the credit.” …
many of them are also taking potentially expensive gambles. This year’s renewal does not require projects to go into production until the end of 2016, but they must either be in continuous construction or have spent at least 5 percent of the total costs this year. Project costs can top $100 million.
Companies are frantically reordering their usual processes, with some ordering turbines without permits to build or starting construction while still negotiating power contracts, said Michael Garland, chief executive of Pattern Energy, a developer of wind farms that went public this year.
Click on the following to read the entire story: Wind Power Developers Race Clock to Secure Subsidy - NYTimes.com
