US wind energy continued to rebound in the second quarter of 2011, with 2,151 megawatts (MW) of electrical generating capacity installed in the first half of 2011 versus 1,250 MW during the same time in 2010, up 72 percent.
However, analysts at the American Wind Energy Association (AWEA) cautioned that without stable policy such as an extension of the Production Tax Credit, set to expire in 2012, the industry’s recovery will stall.
Project activity and orders for 2013 and beyond are scant because of the lack of a predictable business environment, causing layoffs and even bankruptcies in American manufacturing plants and the supply chain, said AWEA. These struggles for US wind manufacturers will only worsen if Congress were to allow the tax credit to expire.
Ironically, due to the Production Tax Credit and market stability over the past five years, domestic content in the US industry reached a record high of 60 percent through 2010, according to a recent Department of Energy report.
“Clearly Congress cannot take for granted all the wind energy manufacturing and construction jobs that have been a bright spot through the recession,” said Denise Bode, CEO of AWEA.
However, she added, “Wind tax credits enjoy broad bipartisan support, and since they’re not spending programs, current projects are safe and prospects for extension of the Production Tax Credit beyond 2012 are good.”
